Meeka Gold Ltd (ASX:MEK) has moved into the rare earth space by picking up the Cascade Rare Earth Project, which includes exploration licences and applications covering 2,068 square kilometres of the Albany-Fraser Mobile Belt.
The project is part of an emerging rare earth province and is highly prospective for ionic adsorption clay and rare earth element (IAC-REE) deposits.
Previous explorations in the province have met with significant success, and the project is to the west of ground controlled by Mount Ridley Mines Ltd (ASX:MRD), where drilling has intersected significant rare earth elements over a strike length in excess of 25 kilometres, including a peak total rare earth oxides (TREO) of 10,461 parts per million (1.05%).
Map of the province hosting the Cascade Rare Earth Project.
Demand surge for rare earth elements
Rare earth elements are critical inputs into the renewable energy, electric vehicles, technology and defence sectors, and there has been unprecedented focus by governments and the private sector to decarbonise and increase renewable energy uptake. All these factors are driving a demand surge, market tightness and significant price appreciation in rare earth oxides.
Adding to the demand surge is a focus on diversifying supply away from China, which currently supplies 90% of global rare earth oxides.
“We originally set about building and systematically reviewing our geological database for the Albany-Fraser in search of gold exploration targets to replicate the success we are having at Circle Valley, however the data continually pointed us toward this province scale rare earth opportunity,” CEO Tim Davidson said.
“The extraordinary and compelling scale of this opportunity, and the very low cost of entry for the business meant we needed to act decisively and secure the ground, which we have done.
Scale of the opportunity
“We will now begin more detailed exploration targeting across the project with immediate effect. The team on the ground at Circle Valley will engage with landowners at Cascade, as we successfully did at Circle Valley, to ensure we can commence on ground exploration work unimpeded, at the appropriate time.
“I also want to reinforce to our shareholders that we remain laser focused on our gold strategy, with exploration drilling currently ongoing across both the Murchison and Circle Valley Gold Projects, and pre-feasibility studies for the Murchison progressing – however the scale of the Cascade REE opportunity, value accretive potential and minimal cost of entry compelled the business to act.”