Cyclone Metals Ltd (ASX:CLE) intends to move quickly to explore for high-value rare earths after being granted two exploration licences over the Dogger and Sebastian Projects in Western Australia’s Carnarvon Basin.
Wholly-owned subsidiary Metal Exploration Pty Ltd was granted tenements E09/2441 and E09/2442, covering around 914 square kilometres on May 17, 2021.
These tenements cover 297 graticules and are 33 kilometres from the North West Highway to the east of Shark Bay.
Planned exploration
Grant of the tenements will allow Cyclone to begin planned exploration programs in the area.
Cyclone non-executive chairman Terry Donnelly said: “It's very pleasing to get the exploration licences granted after all the hard work put in by the company over the last six months.
"This is yet another exciting project we have been working on and with rare earth prices at high levels we will continue to work on this project for the benefit of shareholders.”
Allender Exploration was engaged as geological consultants and undertook an initial exploration program that included desktop and non-ground disturbing reconnaissance exploration, in addition to geological and geochemistry analysis of the area.
Tenement over TMI with geochemical sample locations.
The company will now prepare a detailed exploration program that will begin shortly.
Trading suspension
Cyclone’s securities were suspended from official quotation on October 16, 2020, on the basis that ASX had determined the company’s operations are not adequate to warrant the continued quotation of securities and compliance with LR 12.1.
The company is currently liaising with ASX regarding compliance with LR 12.1.
Over the many years since Cyclone’s initial listing (more than 15 years) it has consistently communicated with ASX and shareholders its strategy that involves the acquisition and investment in undervalued and/or distressed mineral assets and companies.
Cyclone currently manages six major assets, being investments in listed companies European Lithium Ltd (ASX:EUR), Fe Ltd (ASX:FEL) and Cauldron Energy Ltd (ASX:CXU), the Marampa iron ore asset in Sierra Leone, the Lady Ethleen copper asset in Queensland and its rare earths project in Western Australia.
The market value of these assets is well over $20 million.
Cyclone is continuing to engage with ASX regarding this matter with a view to a resolution as soon as practicable.