Strategic Minerals Plc (LON:SML) is use its own cashflow to fund a three stage exploration programme by subsidiary Central Australian Rare Earths (CARE) in Western Australia.
Hanns Camp will see the first exploration with 2,000 metres of shallow hole drilling focused on finding cobalt and nickel.
Stage two will involved deeper drilling looking for nickel sulphide deposits.
WATCH: Why are Strategic Minerals getting excited about rare earths?
The third stage will see a soil sampling campaign at Mount Weld, 30km to the south, to identify rare earths and gold targets.
Strategic added its tenements at Mount Weld are adjacent to the huge rare earths project run by Lynas.
WATCH: Strategic Minerals' John Peters and Alan Broome on hitting the ground at Hanns Camp
John Peters, Strategic Minerals’ managing director, said: "Considering the successful results of previous drilling at Hanns Camp and the large Lynas operation adjacent to the Mount Weld tenements, we consider that there is a strong potential for technical and commercial success associated with the planned exploration programmes.
"SML's strategy of judiciously fast tracking the CARE project, now that we have acquired 100% ownership, is taking effect and has the potential to add significant value and provide great returns to shareholders.
"Further, due to the underlying cashflows from its Cobre magnetite stockpile operation, SML is in the fortunate position to undertake these activities without any dilution to existing shareholders."