VR Resources Ltd (TSX-V:VRR, OTCQB:VRRCF) revealed that it has received additional geochemical data that increases the PMREO content of the high-grade rare earth element mineralization intersected in HK22-013, at its Hecla-Kilmer (H-K) critical metal project, in Ontario.
In a nutshell, PMREO is the sum of high-value rare earth oxides used in permanent magnet motors and turbines used in electric vehicles (EVs) and wind turbines.
According to the Vancouver-based junior exploration company, the intersection for Hole 13, originally reported on July 21 in NR-22-08, is now reported as 243 meters (m) at 1.02% TREO, of which 21% are PMREO, within 287m at 0.90 % TREO, starting at surface, and continuous to the end of the hole.
READ: VR Resources announces completion of fall drilling at its Hecla Kilmer project in Ontario
VR reported the hole includes 66.61m at 1.57 % TREO, starting at 155m depth, and including 39m at 2.04% TREO starting at 155m. The 66.6m at 1.57% TREO is made up of 20.7% Magnet REO, which contains rare earth elements like neodymium, praseodymium, dysprosium, and terbium. The 39m interval at 2.04 % TREO contains 15.71% P2O5.
The company noted that Hole HK22-13 ended in high-grade mineralization at 15m at 2.22% TREO with 21.3% PMREO. The high-grade mineralization is open beyond the end of the hole at 330m. As such, the hole was extended in the recent drill program, and the Hole HK22-013 extension was completed to 504m and data is pending, according to the company.
High significance
VR said the new data for Hole 13 demonstrates a 2% overall increase in PMREO at Hecla-Kilmer, driven by previous underreporting of praseodymium, one of the four high-demand rare earth oxides used in permanent magnets.
PMREO is prized in global markets as it is essential in the manufacturing of motors for EVs and wind energy turbines, which are crucial to the green economy. The high price of four PMREOs partially reflects the constraints on demand because of the global monopoly of China.
“The new data only re-emphasizes that the polymetallic mineralization at Hecla-Kilmer competes with the world’s best-of-breed REE deposits,” noted VR Resources.
The proportion of TREO as PMREO, particularly praseodymium, neodymium, and terbium, is higher at Hecla-Kilmer than at existing carbonatite REE mines of Bayan Obo (largest) and Mountain Pass (highest grade).
Going forward, VR said it has picked further high-grade REE samples from across the property for scanning electron microprobe (SEM) research to determine exactly which minerals host the high-value magnet rare earth elements. Initial results are expected by the year-end, and work will be ongoing through 2023, said the company.
VR has initiated the scoping for a metallurgical test/extraction study using a bulk sample of core from a drill hole with a broad intersection of mineralization starting at the surface. The work is planned for the first half of 2023, utilizing the expertise of Ontario-based SGS Lab, said the company.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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