Reach Resources Unveils Promising REE Mineralization at Wabli Creek
REACH RESOURCES LIMITED (RR1) Share Update December 2024 Thursday 5th
Reach Resources Announces Promising REE Findings at Wabli Creek
Reach Resources Limited (ASX: RR1 & RR1O) has announced the results of its maiden drilling campaign at the Wabli Creek Project in Western Australia, revealing significant mineralization of rare earth elements (REE).
Instant Summary:
- Consistent, thick REE mineralization confirmed in alkaline granite.
- High-grade zones of Magnet Rare Earth Oxide (MREO) up to 1809ppm.
- Significant Total Rare Earth Oxide (TREO) potential with grades up to 7193ppm.
- Mineralization found at or near the surface across multiple drill holes.
- Potential similarity with globally significant REE deposits.
Drilling Campaign Overview
Reach Resources Limited has completed a successful maiden drilling campaign at its Wabli Creek Project, located in the Gascoyne region of Western Australia. The campaign involved 40 reverse circulation (RC) drill holes across three target areas: Pelops, Broteas, and Amphion. The drilling aimed to explore the potential of the alkaline granite intrusion for rare earth element (REE) mineralization.
Significant Findings
The results confirmed consistent, thick mineralization of rare earth elements within the biotite granite. Notably, the campaign uncovered high-grade zones of Magnet Rare Earth Oxide (MREO), including neodymium, praseodymium, dysprosium, and terbium, with concentrations reaching up to 1809ppm. These elements are crucial for manufacturing permanent magnets used in electric vehicles and wind turbines.
The Total Rare Earth Oxide (TREO) potential is significant, with grades reaching up to 7193ppm. The mineralization was found at or near the surface in multiple drill holes, which is advantageous for future exploration and potential mining operations.
Geological Context and Comparisons
The mineralization at Wabli Creek is hosted within an alkaline granite intrusion, similar to globally significant REE deposits such as Torngat Metals' Strange Lake in Canada and Red Metal Limited's Sybella project in Queensland. While Strange Lake's high-grade zones are associated with flat-lying pegmatites, Wabli Creek's mineralization occurs near pegmatites but is not sourced from them. Instead, hydrothermal fluids migrating through shear zones likely formed the high-grade zones.
These findings suggest a large TREO resource potential, further supported by the presence of significant weathering along shear zones, which correlates with the highest grades of TREO and MREO.
The announcement of significant REE mineralization at Wabli Creek is likely to positively impact Reach Resources' stock, as investors recognize the potential for a valuable resource. The high-grade MREO findings are particularly promising, given the increasing demand for these elements in green technologies. This could enhance Reach Resources' position in the REE market and attract further investment.
Investor Reaction:
Analysts have reacted positively to the news, highlighting the project's potential to become a significant source of rare earth elements. The consistency of the mineralization and the proximity to the surface are seen as positive indicators for future exploration and development.
Conclusion:
Investors should closely monitor Reach Resources' next steps in the exploration process, as the company seeks to further understand the mineralogy and assess the full potential of the Wabli Creek Project. The promising results from the maiden drilling campaign could position Reach Resources as a key player in the REE market.