Alderan Resources Uncovers Promising Rare Earth and Lithium Grades in Brazil
AL8 (AL8) Share Update July 2024 Monday 22nd
Alderan Resources Reports Anomalous Rare Earth and Lithium Assays in Brazil
Alderan Resources Limited (ASX: AL8) has announced highly promising results from stream sediment samples collected at its Itaipe lithium project in Minas Gerais, Brazil. The samples revealed significant grades of rare earth elements (REE) and lithium, marking a potential breakthrough for the company's exploration efforts in the region.
Instant Summary:
- Highly anomalous rare earth element and lithium stream sediment assays obtained for the Itaipe area.
- Three project areas in Brazil now show significant rare earth element and lithium anomalies.
- Itaipe neodymium and praseodymium assays are up to 72ppm and 23ppm respectively.
- Itaipe lithium grades range up to 87ppm against a background grade of 5ppm.
- Strong correlations between neodymium, praseodymium, and other rare earth elements suggest a favorable geological environment.
- Next steps include detailed stream sampling, geological mapping, and drilling.
Discovery Details
Alderan Resources Limited has reported highly anomalous grades of rare earth elements and lithium from stream sediment samples collected at its Itaipe lithium project in Minas Gerais, Brazil. The highest neodymium and praseodymium assays in the Itaipe samples grade up to 72.1ppm and 22.8ppm respectively. Background grades for these elements are significantly lower, making these findings particularly noteworthy.
The average grade for neodymium across all samples is 20.8ppm, while the background grade is less than 10.0ppm. Similarly, the average grade for praseodymium is 6.3ppm, with a background grade of less than 5.0ppm. These results indicate a strong potential for rare earth element mineralization in the area.
Lithium Findings
In addition to rare earth elements, the Itaipe area has shown significant lithium anomalies. The background lithium grade in the region is approximately 5ppm, but the average grade for all samples is 9.9ppm. Some samples have grades as high as 87.5ppm, 43.6ppm, and 41.3ppm, particularly in the southwestern and central portions of the project area.
There are strong positive correlations between lithium and elements such as caesium, beryllium, rubidium, and niobium, further suggesting a favorable geological environment for lithium mineralization.
Next Steps
Alderan plans to conduct detailed stream sampling in Q3 2024 to define prospects for more focused soil sampling, geological mapping, and drilling. The company is also awaiting assay results for the final three exploration areas, which are expected within the month.
Frisco Copper-Gold Project Update
In addition to the Itaipe project, Alderan provided an update on its Frisco Copper-Gold Project in Utah, USA. The company has paid the rehabilitation bond for new drill sites and is awaiting permits from the Utah Department of Oil, Gas, and Mines. The revised target for the commencement of drilling is the first half of August.
The discovery of highly anomalous rare earth and lithium grades in the Itaipe area is a significant development for Alderan Resources. These findings could potentially lead to the identification of economically viable deposits, boosting the company's stock value. The strong correlations between various rare earth elements and lithium suggest a promising geological environment, which could attract further investment and interest in Alderan's projects.
Investor Reaction:
Managing Director Scott Caithness expressed optimism about the findings, highlighting the potential for further exploration and development. Investors and analysts have responded positively, noting the strong geological indicators and the potential for significant returns.
Conclusion:
Investors should keep a close watch on Alderan Resources as the company progresses with its exploration efforts in Brazil and the USA. The promising assay results from the Itaipe project and the upcoming drilling at the Frisco Copper-Gold Project could provide substantial growth opportunities. Stay informed on the latest developments and consider the potential long-term benefits of Alderan's exploration activities.