Taruga Minerals Ltd (ASX:TAR) has secured $650,000 in funding from the South Australian Government to accelerate exploration for copper and rare earth elements (REE) at its Mt Craig Project.
The funding in two lots of $325,0000 will enable the company to explore for ionic adsorption clay (IAC) style REEs and Central African style sediment-hosted copper at the project.
Notably, the funding comes under the Accelerated Discovery Initiative (ADI), aimed at accelerating new mineral discoveries for key commodities in regional and frontier provinces of South Australia.
Taruga is one of 13 companies to secure the funding, which included Oz Minerals Ltd.
REE potential at Mt Craig
Speaking to the REE potential at Mt Craig, Taruga CEO Thomas Line said: “We are extremely pleased to have been successful in securing this highly competitive funding, which will go toward exploration for clay-hosted rare earth elements at our massive Mt Craig Project which now spans more than 850 square kilometres.
“I would like to thank the South Australian Government and Minister Koutsantonis for their support.”
Clay-hosted rare earth elements were discovered by Taruga during 2021 drilling at Morgan’s Creek. which was focused on copper exploration.
The geological setting which hosts the REEs at Morgan’s Creek expands across a significant portion of Mt Craig, however, targeted REE exploration drilling has never before been conducted at the project.
Morgan’s Creek REE drilling results from 2021.
Sediment hosted copper potential
In regard to the potential for sediment-hosted copper, Line added: “We are extremely pleased to have been successful in securing this highly competitive funding, which will go toward exploration for Central African style sediment-hosted copper at our massive Mt Craig Project.
“Birthday Ridge and Wyacca form only two of many sediment-hosted copper targets at the Mt Craig Project, which include both Tapley Hill Formation and Niggly Gap Beds which collectively have more than 70 kilometres of strike through the folded geology.
“I would like to thank the South Australian Government and Minister Koutsantonis for their support”.
High-grade sediment-hosted copper was discovered by Taruga during 2021 drilling at Wyacca which was focused on copper exploration.
The Mt Craig Project also includes Birthday Ridge, where extensive sediment-hosted copper mineralisation was discovered by historical explorers from the surface and is yet to be followed up.
Funding covers exploration for sediment-hosted copper across the entire 850 square kilometre project, including Wyacca and Birthday Ridge.
Wyacca sediment copper drilling results from 2021 Taruga drilling.
Accelerate development
The government funding represents a validation of the potential for the Mt Craig Project to host significant sediment-hosted copper deposits and clay-hosted REE deposits.
This ADI funding will accelerate the development of the REE targets and sediment-hosted copper targets at Mt Craig.
South Australian Minister for Energy and Mining Tom Koutsantonis said: “These grants will allow companies to use innovative technologies and concepts to fast-track new exploration ideas and techniques across South Australia.
“The information gathered and shared from these programs bring forward-thinking and collectively move the dial for exploration in South Australia.”
Investors have responded positively to the two grants with shares trading 15.79% higher at $0.022.