Reach Resources Ltd (ASX:RR1) has acquired a highly prospective landholding with extensive rare earth-uranium pegmatites mapped at the surface within the Yinnietharra region of Gascoyne Province of Western Australia.
The company entered into a conditional binding Heads of Agreement (HoA) to acquire all of the shares in Critical Elements Pty Ltd which holds exploration licences EL 09/2354 and EL 09/2377.
Notably, surface sampling at the new tenure shows elevated levels of critical metals including heavy and light rare earths including the actinides (thorium and uranium).
Project overview
Gascoyne Project in the Yinnietharra region has historically produced significant quantities of beryl, mica, bismuth, tantalum and niobium from coarse-grained pegmatites.
The project consists of two granted exploration licences covering around 59 square kilometres where rare earths have been identified.
Gascoyne Project is about 80 kilometres from the company’s recently settled rare earth project acquisition from Skyline Resources Corporation Pty Ltd, which is 20 kilometres east of Hastings Technology Metals Limited’s Yangibana REE Project.
Project geology, prospects and sampling.
Sampling process
Small-scale alluvial and primary pegmatite mining has been sporadically undertaken, with exploration activities primarily focusing on tantalum-niobium-beryl-mica and to a lesser extent uranium.
Sampling conducted to date is only from these two localities within the tenure with systematic sampling required to understand the distribution and extent of mineralisation.
Key terms
Reach proposes to acquire 100% of the issued capital of Critical Elements Pty Ltd.
Critical Elements and its respective shareholders are not related parties of the company in this proposed transaction.
The consideration payable for the proposed acquisition pursuant to the HoA is 40 million fully paid ordinary shares.
Completion of the proposed acquisition is subject to final due diligence, which is to be completed by the company within the next 20 days.
Notably, the global rare earths market was valued at around US$2 billion in 2020 and is forecast to grow to around US$12 billion by 2030, up an average of 16% a year
Forward plan
In order to understand the extent and potential of the mineralisation evident across the project the following activities are planned to be undertaken:
- Satellite imagery interpretation to map extents of historical mining activities;
- Field reconnaissance and sampling of pegmatites and historical mining activities were undertaken across the site to understand zonation and grade distribution;
- Scout drill testing of the pegmatites to determine their geometry and mineralisation potential; and
- Assays will be undertaken by fusion ICPMS to ensure complete refractory phase (xenotime) dissolution.