Reach Resources' Wabli Creek Project Yields High-Grade Rare Earth Element Results
RR1 (RR1) Share Update November 2024 Wednesday 20th
Reach Resources Unveils Promising Rare Earth Element Discoveries
Reach Resources Limited (ASX: RR1 & RR1O) has announced promising assay results from its maiden drilling campaign at the Wabli Creek Project, revealing significant rare earth element mineralization.
Instant Summary:
- Assays from 18 of 40 drill holes show significant intersections of Total Rare Earth Oxides (TREO) over 1,000ppm.
- High-grade intersections of Magnet Rare Earth Oxides (MREO) up to 1,856ppm.
- Mineralization hosted by biotite granite, indicating consistency across drill holes.
- Monazite and Zircon identified as prominent REE minerals.
- Further assay results expected in the coming weeks.
Drilling Results
Reach Resources Limited has released the first batch of assay results from its recent drilling campaign at the Wabli Creek Project, located in the Gascoyne region of Western Australia. The results from 18 drill holes at the Pelops target area have shown broad intersections of Total Rare Earth Oxides (TREO) exceeding 1,000ppm. This indicates a large mineralized zone from the surface to depths over 109 meters, remaining open at depth.
Early geochemical analysis has also revealed high-grade intersections of Magnet Rare Earth Oxides (MREO), with concentrations reaching up to 1,856ppm. These elements, including Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb), are crucial for the production of permanent magnets used in electric vehicles and wind turbines.
Geological Insights
The mineralization is hosted by biotite granite, part of a large Alkaline Granite intrusion, which has resulted in consistent mineralization across the drill holes. Petrological analysis has identified Monazite and Zircon as the key REE minerals, with Monazite distributed throughout the granite.
CEO Jeremy Bower commented on the results, highlighting the potential scale of the target due to the size of the intrusion and the open mineralization at depth. The company is eager to receive the remaining assay results to further understand the extent of the discovery.
The promising assay results suggest a significant potential for rare earth element production at the Wabli Creek Project, which could positively impact Reach Resources' stock. The high-grade MREO findings are particularly valuable given the growing demand for these elements in green technologies.
Investor Reaction:
Analysts are optimistic about the initial results, noting the importance of rare earth elements in the renewable energy sector. The consistency of mineralization and the presence of high-grade MREO are seen as positive indicators for future exploration and development.
Conclusion:
Investors should keep an eye on the forthcoming assay results and Reach Resources' next steps in exploring the Wabli Creek Project. The company's strategic approach to developing this promising site will be crucial in capitalizing on the growing demand for rare earth elements.