Andromeda Metals Ltd (ASX:ADN) has welcomed news from exploration partner – and potential joint venture partner – Cobra Resources PLC (LSE:COBR) that reverse circulation (RC) drilling at Clarke prospect within the Wudinna Gold Project on South Australia's Eyre Peninsula has returned rare earth elements (REE) hosted directly above gold mineralisation.
The rare earth mineralisation was identified in saprolitic clays overlying gold mineralisation at Clarke, with the best gold intersections being 33 metres at 1.03 g/t from 65 metres and 20 metres at 1.5 g/t from 88 metres.
Rare earth results
Cobra’s geologists, supported by the CSIRO’s X-Ray Diffraction (XRD) analysis and evaluation, have interpreted the REE present to be Iconic Absorbed Clays-style mineralisation.
Average true width of the defined Total Rare Earth Oxides (TREO) mineralisation is 18.7 metres with an average grade of 597 parts per million (ppm).
The highest-grade 1-metre TREO intercept was 9,024 ppm, containing praseodymium, neodymium, terbium and dysprosium with mineralisation remaining open in all directions.
Cobra’s interpretation of this REE target is that the continuity and consistency of the rare earth mineralisation indicates that there may be a significant opportunity to increase the extent of the mineralisation’s footprint.
The company says targeted REE analyses of the drill samples used to define these deposits presents as a low-cost exploration opportunity to define further rare earth mineralisation in the region.
Farm-in and joint venture agreement
Currently, the project is owned by Peninsula Resources Limited, a wholly-owned subsidiary of Andromeda Metals.
Cobra has alerted Andromeda that it has met the stage 2 expenditure commitment under the Wudinna Gold Project Joint Venture Agreement, which gives it the opportunity to buy-in as the project manager and earn up to a 75% interest in the project.
That company now has the opportunity to enter stage 3 expenditure to earn the 75% interest in return for a further $1.65 million over two years, or enter into a joint venture with Andromeda immediately.
About Andromeda Metals
Andromeda Metals Ltd (ASX:ADN) is an emerging industrial minerals company based in Adelaide, South Australia, with a vision of becoming the world’s leading supplier of high-grade halloysite-kaolin.
The company’s primary focus is directed towards the final evaluation and development of the world-class Great White Kaolin Project into production in early 2022, which is a joint venture between Andromeda and Minotaur Exploration Ltd (ASX:MEP) in which Andromeda has a 75% interest.
Development of the Great White Kaolin Deposit remains the focus for Andromeda, with another Eyre Peninsula project, Mount Hope, offering potential for future growth opportunities.