Meeka Gold Ltd (ASX:MEK) is trading higher after highlighting shallow, broad and high-grade rare earths from recent drilling at Cascade Project within the Albany-Fraser Mobile Belt of Western Australia, outlining grades up to 4,029 parts per million total rare earth oxides (TREO).
The company described the results as ‘spectacular’, revealing assays up to 29 metres thick within the saprolitic clays in the Western Block of Cascade.
Strong results include:
- 7 metres at 3,826ppm TREO from 36 metres, including, 3 metres at 4,029ppm;
- 3 metres at 1,989ppm TREO from 16 metres; and
- 29 metres at 629ppm TREO from 8 metres including 1-metre at 3,729ppm TREO.
Importantly, the high-value magnet rare earths and critical rare earths account for an average of 26% and 25% of TREO grades respectively.
Shares have been as much as 27.5% higher this morning to $0.051.
Looking ahead, assays for a further 105 holes from the Eastern Block of Cascade are expected later this month with metallurgical test-work also on the cards.
“Remarkable scale potential”
Commenting on the results, Meeka CEO Tim Davidson said: “These results from our 100%-owned Cascade Project show remarkable scale potential.
“We are seeing shallow, broad, high-grade intersections over a large area. Results from the Eastern Block are due in late May 2022 and may expand the scale even further.
“Importantly, the results contain high levels of permanent magnet metals being neodymium-praseodymium oxides.
“These metals are geopolitically critical and we intend to accelerate our understanding of Cascade with drilling commencing on the back of results from the eastern block and metallurgical test-work expedited.”
Forward plan
At 2,068 square kilometres, Cascade represents a potentially large scale, high-grade rare earths project.
Imminent plans to accelerate this project include:
- Receive assay results for the Eastern Block (late May 2022); and
- Detail a forward activity plan targeting the highest value (high heavy and magnet REO content) zones of mineralisation (June 2022).
Furthermore, initial metallurgical work will be expedited to understand the process for producing a commercial product from Cascade.
Rare earths potential
The unique chemical and physical properties of rare earths have positioned them as a critical material across a number of rapidly evolving markets and industrial applications.
In particular, neodymium-praseodymium oxides are critical elements in the manufacture of permanent magnets used for electric motors, turbines and mobile phones.
Clay hosted rare earth projects often enjoy significant project and cost advantages compared to hard rock projects, with cheap bulk mining and a simple process flow sheet
The high proportion of magnet rare earth elements (neodymium-praseodymium) in clay deposits also results in a high-value product.
Additionally, they do not produce the costly radioactive tailings waste that is often a by-product of processing hard rock deposits.