PVW Resources NL (ASX:PVW) surged to a high of more than nine years following a field program that returned high-grade rare earth rock chip results from Killi Killi East and Watts Rise prospects of the Tanami Project in WA's northeast
Shares surged 91.89% intraday to $0.355 on the back of successes across the company’s portfolio, including completion of the Stark Resources Pty Ltd acquisition and the King of the West Project expansion agreement as well as the additional windfall of high-grade TREO (total rare earth oxide) results at Tanami Project.
Assay results of note include:
- 12.45% TREO including 11,592 ppm dysprosium;
- 9.26% TREO including 7,070 ppm dysprosium;
- 7.38% TREO including 6,324 ppm dysprosium; and
- 3.90% TREO including 2,743 ppm dysprosium (12 kilometres from Killi Killi East prospect).
Assays have been received for only 20 rock chip samples from the field program, which included reconnaissance geological mapping and rock chip sampling at the Killi Killi East and Watts Rise prospects. Geochemical sampling has also been completed at Watts Rise.
Positioned for aggressive exploration
Of the 17 samples from Killi Killi East, 13 returned assays greater than 1% TREO and one of the three Watts Rise samples assayed 3.9% TREO.
The Killi Killi strike is more than 1.8 kilometres long and adjacent to a regional unconformity that indicates potential for hydrothermal unconformity-related rare earth mineralisation along the 18-kilometre-long Watts Rise-Killi Killi trend.
The 14 samples that returned results above 1% TREO had a Heavy Rare Earth (HRE) ratio of about 80%, indicating dominance of heavy rare earths within the mineralisation, likely related to the rare earth mineral xenotime.
“These are significant Heavy Rare Earth results. Following my time as managing director of Northern Minerals for over 10 years, I believe these results are as significant as those announced in 2010 when the Wolverine deposit was first discovered at Browns Range,” PVW executive director George Bauk said.
“We now know so much more about this style of mineralisation and what we have uncovered to date at Killi Killi indicates there is significant potential within the Killi Killi Corridor, which is over 2 kilometres long, and the regional target of over 18 kilometres along the Killi Killi East/Watts Rise trend.”
“With the knowledge gained over the past decade, PVW Resources is in a position to drive an aggressive exploration program to determine the potential of this project.”
PVW says the presence of high-grade gold in some of the Killi Killi East samples provides an additional target for exploration. With gold assays up to 8.94 g/t and 4.43 g/t within the same host rock as rare earths, there is potential for a polymetallic style of mineralisation at the prospect.
Mineralogical studies planned
A detailed airborne magnetic and radiometric survey was also completed in August, the results of which will be integrated with existing geophysical data sets and allow for a new interpretation of the mineralisation in the area.
“We will be undertaking the key steps to understand the mineralogy so that we can get a line of sight on the metallurgy, and we will also undertake a metallurgical test on a bulk sample to be collected during October,” Bauk continued.
"We need to understand both the REE mineralisation and the whole of rock mineral distribution to provide an insight into a potential flow sheet.
“We are all aware of the state of the nation in respect to critical minerals, with rare earths at the forefront and that has been supported by the recent announcement by the Morrison Government to support the industry through the $2 billion loan facility for Australian Critical Minerals projects to help secure the vital supplies of resources needed to drive the new energy economy and support the resources jobs of the future.”
Follow-up work involving geochemical soil sampling and detailed ground radiometrics are about to re-commence, with mineralogical and metallurgic studies planned to begin later this quarter.
Drilling is also planned for Killi Killi East and Watts Rise contingent on the onset of the northern rainy season, which may cause the program to be deferred to early 2022.
Seeking strategic partners
PVW Resources is now looking to develop this greenfield HRE project by leveraging the company’s experience in the field and inviting strategic partnerships that will allow PVW to improve its process.
“PVW has significant experience in advancing a greenfield HRE project to production and what we have is a project in the Tanami that has the potential to be the next significant HRE project in Australia and perhaps the world,” Bauk said.
“Parallel to the exploration and initial metallurgical workstreams will be a strategy session held with the PVW board and key advisors to determine the most efficient way to take this project forward.
"We will be identifying strategic partners to host initial discussions aimed at fast-tracking this project. Time is of the essence and the strategic construct is critical.
"Whilst we have significant in-house expertise, we need to look at ways to execute this better than before.”