Taruga Minerals Ltd (ASX:TAR) has delivered more rare earth element (REE) recoveries described as "exceptional" from analytical test-work on ore from Morgan’s Creek within the Mt Craig Project in South Australia.
The positive tests indicate there is a high concentration of readily soluble REEs in recent drill samples at Morgan’s Creek, a critical factor in determining the economic viability of REE deposits.
In the weathered zone, Taruga identified average recoveries of:
- total rare earth element oxide (TREO) has increased from 68% TREO to 72%;
- high-value magnetic rare earth element oxides (MREO) have increased from 70% MREO to 75%; and
- heavy rare earth element oxide (HREO) has increased from 53% HREO to 62%.
Taruga is now targeting a series of newly identified clay-hosted REE targets across Morgans Creek in the first-ever REE-focused exploration at the project where copper has previously been the focus.
Looking ahead, the company remains well funded with existing capital to continue exploration activities including the fully budgeted drilling, regional exploration and metallurgical test-work.
“First-ever targeted REE exploration”
Taruga CEO Thomas Line said: “Our ongoing metallurgical assessment continues to provide strong encouragement for the potential of the REEs at Morgan’s Creek to be susceptible to a simple, low-cost process flow sheet.
“We have now analysed all significant intercepts which have indicated high average recoveries in the clay and weathered zones.
“The technical team have been busy defining a series of new clay-hosted REE targets at Morgan’s Creek and we are currently performing auger drilling across these targets to assist in refining drill targets.
“We are excited to progress to aircore and RC drilling toward the end of July, in what will be the first-ever targeted REE exploration program at the project.”
Investors are also buoyed by the results with shares as much as 18.18% higher intraday to $0.026.
The test work was implemented to assess if the rare earth elements present in previously identified anomalous assay intercepts were readily soluble
A second batch of samples enriched in high-value rare earth elements from Morgan’s Creek has been analysed to determine the concentration of readily soluble REEs.
High concentration of readily soluble, weakly bound REEs is a key feature of Ionic Adsorption Clay (IAC) REE deposits and allows for a simple metallurgical flow sheet, a critical factor in determining the potential commercial viability of REE deposits
The second batch of results has increased the average recoveries across the weathered and fresh rock zones, with no change to the average recovery of the clay zone.
Fresh rock REE recoveries have also increased and indicate a high REE solubility of 47% of the TREO and 50% of the MREO in the fresh rock zone.
Exploration plan
Taruga is undertaking its first-ever targeted REE exploration program at Morgan’s Creek.
As part of the exploration program, the company has completed target generation based on new geophysical datasets, mapping and drill data review at the project.
Also, soil geochemistry and auger drilling profiles over priority targets to refine targets are underway at the project.
Furthermore, aircore and RC drilling are also on the cards, scheduled to kick off late this month.