Prospech Limited Commences Diamond Core Drilling at Korsnäs Project
PRS (PRS) Share Update August 2024 Sunday 11th
Prospech Limited Initiates Diamond Core Drilling at Korsnäs Project
Prospech Limited (ASX: PRS) has announced the commencement of diamond core drilling at its Korsnäs rare earth elements (REE) project in Finland, marking the first such activity since the 1970s.
Instant Summary:
- Diamond core drilling commenced at Korsnäs.
- Over 1,000 meters of drilling to define mineralization extensions and continuity.
- Validation of historic drill core and modern assay results.
- Material for hard rock target metallurgical test work.
- Preparation of a maiden resource estimate for Korsnäs project.
Drilling Program Details
Prospech Limited has embarked on a significant drilling program at its Korsnäs project in Finland. The program involves over 1,000 meters of diamond core drilling aimed at defining mineralization extensions and ensuring continuity. This initiative is designed to validate historic drill core and modern assay results, provide material for metallurgical testing, and facilitate the preparation of a maiden resource estimate for the Korsnäs project.
Historical Context and Objectives
According to Jason Beckton, Managing Director of Prospech, these are the first diamond core holes drilled at the Korsnäs project since the 1970s. The primary goal is to confirm the REE potential of the site and to obtain fresh core samples for metallurgical testing. Beckton expressed optimism about the progress at Korsnäs, emphasizing the opportunity to extend known mineralization down dip and along strike, as well as validating the historic drilling and sample results.
Technical Specifications
The current drilling program involves 1,000 to 1,200 meters of large diameter (HQ) diamond core drilling. This effort is focused on replicating selected high-grade REE intersections from historical core sampling and testing for strike and dip extensions of known high-grade REE mineralization. The fresh core obtained will be crucial for metallurgical testing, which will support the preparation of a maiden JORC compliant resource estimate for the project.
Initial Results and Future Prospects
To date, assay results from sampling historic drill core at the Korsnäs mine have validated the presence of multiple high-grade REE mineralization targets. The known mineralization has been extended below the lowest level of the historic mine and 1.5 kilometers to the northwest. Additionally, five gravity anomalies with a total strike length exceeding 5 kilometers have been identified, indicating significant potential for further discoveries.
The commencement of diamond core drilling at the Korsnäs project is a significant milestone for Prospech Limited. This development is likely to boost investor confidence in the company's exploration capabilities and the potential of the Korsnäs project. The validation of historic drill core and the extension of known mineralization could lead to a positive revaluation of Prospech's stock. However, the actual impact will depend on the results of the drilling program and subsequent metallurgical testing.
Investor Reaction:
Analysts are likely to view this announcement positively, given the historical significance and potential of the Korsnäs project. The validation of historic drill core and the identification of new mineralization targets could lead to an optimistic outlook among investors. However, caution is advised as the final impact will depend on the detailed results of the drilling program and the preparation of the maiden resource estimate.
Conclusion:
Investors should keep a close eye on the progress of the drilling program at the Korsnäs project. The results from this initiative will be crucial in determining the future potential of the project and Prospech's overall market position. Stay informed on further updates and consider the long-term implications for your investment strategy.