Ram Resources mobilises drill rig at Motzfeldt multi-element project in Greenland

Ram Resources (ASX: RMR) has commenced mobilisation of a drill rig for this year’s highly anticipated field season at its Motzfeldt multi-element project in Southern Greenland, and aims to start drilling on July 7.

The drilling will aim to generate data to use in calculating a maiden JORC Inferred Mineral Resource, as well as follow-up on regional targets. Ram expects the program to include 18 diamond drill holes for 3,200 metres.

Exploration work will focus on the Aries Prospect and some work is also planned at the Romney and Merino targets, which are located within a couple of kilometres of Aries.
Ram previously intercepted high grade rare earth elements (REE) including 25 metres at 5,031 parts per million (ppm) total rare earth oxides (TREO) and 20 metres at 4,852 ppm TREO at the Aries Prospect.

Exploration contractor Greenland Mining Services A/S has begun loading of the drill rig equipment at its base in Qaqortoq, which will be transported via landing craft to a location close to site, before transportation via helicopter to the Aries Prospect.

The key aims of the exploration program are to gather sufficient drill hole data to allow the estimation of the initial Mineral Resource and test the continuity of mineralisation along strike (north to south).

The program also intends to expand the sampled area to the west to better define the mineralised zone, improve mineralogical data on the prospect and further evaluate targets at Merino and Romney.

Previous exploration showed that there was a significant strike length of mineralisation at Aries that trended north-south for about 1.5 kilometres, of which about 200 metres was tested by previous drilling.

Drilling locations for this program aim to obtain mineralised intersections up to 500 metres to the north and 500 metres to the south of the previously drilled area.

Importantly, in 2010 work identified a potential REE dominant zone to the west of the drilled area at Aries which has potentially more than doubled the known mineralised width from around 200 metres to more than 400 metres.

As mineralisation may remain open to the west the company intends to further test this concept with surface sampling and, if warranted, additional drill holes located further to the west.

After the 2011 field season, the company plans to conduct gravity concentration and heavy mineral recovery metallurgical testwork on material from Aries.

Initial work by Angus & Ross in 2006 demonstrated some promising results for gravity concentration. A bulk sample of 200-300 kg will be collected for this purpose.

The Merino Prospect is located in steep terrain, some 2 kilometres from Aries and separated from it by an incised valley. Radiometrics have shown a large anomaly in this area dominated by altered syenite.

The Romney Prospect is about 2 kilometres to the southwest and 500 metres lower than Merino and, based on limited previous work, the company believes this area warrants further follow-up.

Planned activities at Merino and Romney will be to follow-up on previous work with the aim of improving the understanding of the local geology, expand the area that has been sampled with a view to determining if either of these prospects warrants drilling in subsequent years.

On May 16, Ram signed an agreement with the minority shareholders of Greenland Resources Limited (GRL) to vary terms for the acquisition of the remaining 49% of Motzfeldt multi element project in Southern Greenland.

Ram, which already holds 51% of the project, will have a 12 month option to acquire the remaining 49% in one transaction by issuing 200 million shares to the Vendor.

The variation offers improved terms for the acquisition, reduced complexity and greater flexibility in negotiating future corporate transactions in relation to development of the project.

If Ram is able to establish a Mineral Resource at its Aries Prospect at the end of the upcoming 2011 field season, a greater focus will be placed on potential development of the Motzfeldt Project.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17491/ram-resources-mobilises-drill-rig-at-motzfeldt-multi-element-project-in-greenland-17491.html