Corella Resources Initiates Drilling Campaign for Rare Earth Elements and Pegmatites
CR9 (CR9) Share Update August 2024 Tuesday 27th
Corella Resources Announces New Drilling Campaign for Rare Earth Elements and Pegmatites
Corella Resources Ltd is set to begin a significant drilling campaign targeting rare earth elements (REE) and pegmatites in the Tampu region of Western Australia. This marks the first time such a focused exploration will be conducted in this area, which was previously thought to be composed mainly of granite.
Instant Summary:
- 12-20 Aircore/RC drill campaign to commence at new REE and pegmatite targets.
- Drilling supported by a drill-for-equity commitment from Westside Drilling for 50% of total costs.
- Hi-resolution airborne geophysics results used in REE and pegmatite target generation.
- Targets adjacent to the existing Tampu Kaolin deposit with all necessary approvals received.
- Granting of tenement E70/6578 from the Department of Energy, Mines and Industry Resources Safety (DEMIRS).
Drilling Campaign Details
Corella Resources Ltd has announced the commencement of a new drilling campaign targeting rare earth elements (REE) and pegmatites in the Tampu region of Western Australia. This campaign will involve 12-20 Aircore/RC drill holes aimed at newly identified targets adjacent to the existing Tampu Kaolin deposit.
Supported by a drill-for-equity commitment from Westside Drilling, which covers 50% of the total drilling costs, this initiative is backed by high-resolution airborne geophysics results. These results have been instrumental in generating the targets for this campaign.
Geological Insights
Corella Resources CEO, Jess Maddren, highlighted the geological complexity of the Tampu region, which was previously mapped as granite. Recent fieldwork, however, has identified numerous targets for REE and pegmatites. The newly flown high-resolution geophysics has greatly assisted in target generation and aligns well with recent soil and rock chip sampling assay results.
The region's potential for REE mineralization is significant, with historical water wells indicating weathered granite down to depths of 60-70 meters. The SKYTEM open file EM survey shows prospective conductive zones to similar depths, suggesting the presence of REE deposits formed through weathering, erosion, and dissolution of rare earth elements.
Pegmatite Exploration
Pegmatite occurrences have been identified in multiple areas across Corella's extensive Tampu tenement package. The planned drilling will test these targets below the weathering profile, with soil samples showing elemental geochemistry indicative of fractionated pegmatites containing lithium (Li), tantalum (Ta), tungsten (W), rubidium (Rb), and the REE suite of elements.
Tenure and Approvals
On August 16, 2024, the Department of Energy, Mines and Industry Resources Safety (DEMIRS) granted Exploration Tenement E70/6578, covering an area of 151 square kilometers. This new tenement adds to Corella's existing 100% owned Tampu footprint, which now covers 1,922 square kilometers across six granted exploration tenements and two exploration license applications.
The commencement of this drilling campaign is a significant milestone for Corella Resources. The potential discovery of REE and pegmatites could greatly enhance the company's resource base and market valuation. The drill-for-equity agreement with Westside Drilling also demonstrates strong support and reduces financial risk.
Investor Reaction:
Analysts are likely to view this announcement positively, given the potential for new discoveries in an underexplored region. The use of advanced geophysical techniques and the strategic partnership with Westside Drilling are seen as strong indicators of the project's potential success.
Conclusion:
Investors should keep a close eye on the progress of this drilling campaign, as any significant discoveries could have a substantial impact on Corella Resources' stock value. The company's proactive approach and strategic partnerships position it well for potential growth in the rare earth elements and pegmatite markets.