Locksley Resources: Drilling Approval and Expansion at Mojave Project
LKY (LKY) Share Update July 2024 Monday 29th
Locksley Resources Receives Drilling Approval for Mojave Project
Locksley Resources Limited (ASX: LKY) has announced significant progress in its Mojave Project, including drilling approvals and land expansion, marking a pivotal moment for the company's exploration activities.
Instant Summary:
- Drilling approvals received for high-grade El Campo lode.
- Additional 5.7 km² of mineral claims staked, bringing total to 24.4 km².
- Mojave Project located next to Mountain Pass REE Mine, the only operating REE mine in the US.
- Locksley Resources had a cash position of approximately $2.30 million at the end of June 2024.
Drilling Approval Received
The United States Bureau of Land Management (BLM) has approved Locksley Resources' Notice of Intent (NOI) for exploration operations by drilling at the Mojave Project. This approval confirms that the company's plans meet all environmental requirements, allowing them to proceed with their drilling program once a financial guarantee is adopted.
Expansion of Mineral Claims
Locksley Resources has expanded its land tenure by staking an additional 5.7 km² of mineral claims to the northeast of the North Claim Block. This brings the total land area for the Mojave Project to 24.4 km². The new claims are strategically positioned based on the structural interpretation of the area, which suggests potential for REE-rich intrusions and mineralization.
Strategic Location
The Mojave Project is situated adjacent to the Mountain Pass REE Mine, the only operating rare earth element (REE) mine in the United States. This proximity enhances the project's potential, given the high-grade mineralization already identified in the area. Previous rock-chip samples from the El Campo lode have returned 12.1% TREO, indicating significant exploration potential.
Financial Position
As of the end of June 2024, Locksley Resources reported a cash position of approximately $2.30 million. The company has also outlined related party payments for the quarter, totaling $100,502, which includes directors' fees and statutory superannuation.
The approval for drilling and expansion of mineral claims at the Mojave Project is a positive development for Locksley Resources. The proximity to the Mountain Pass REE Mine and the high-grade results from the El Campo lode could significantly enhance the company's exploration potential. This news is likely to boost investor confidence and positively impact the stock price.
Investor Reaction:
Analysts are likely to view this announcement favorably, given the strategic importance of the Mojave Project and its potential for high-grade REE mineralization. The drilling approval and land expansion are expected to generate positive sentiment among investors, although the actual impact will depend on the results of the upcoming drilling program.
Conclusion:
Investors should keep a close eye on the progress of Locksley Resources' drilling activities at the Mojave Project. The company's strategic moves to expand its land tenure and secure drilling approvals position it well for potential future discoveries. Subscribing to updates and monitoring further announcements will be crucial for making informed investment decisions.