Kimberley Rare Earths eyes JORC upgrade at Cummins Range

The newly minted Kimberley Rare Earths (ASX: KRE) is already eyeing a JORC upgrade at the Cummins Range rare earth project in the East Kimberley region of Western Australia - after identifying resource extensions.

The company has kicked off a high-impact exploration program aimed at boosting both the size and classification of the existing JORC Inferred Resource of 11 million tonnes at 1.1% total rare earths oxides (TREO) (0.5% cut-off).

A new high-resolution aeromagnetic survey revealed significant new resource extension targets at Cummins Range, with multiple extensions of magnetic lows beyond existing drill coverage - which the company said supports the resource extension potential.

To kick off the exploration program targeting the untested magnetic lows within the Cummins Range pipe, 5,500 metres of reverse drilling will commence in early 7 September, with a PoW submitted for additional 11,000 metres.

Tim Dobson, chief executive officer, told Proactive Investors today that interim results from the program will be available from late October, with the final set of assays in mid-November - with the highly anticipated resource update in early December.

Aeromagnetic data

Highlighting the prospectivity at Cummins Range, the recently acquired high-resolution aeromagnetic data defined considerable rare earth oxide potential within the Cummins Range pipe.

Importantly - the data revealed what the company referred to as an excellent correlation between the existing rare earth oxide resource and a central magnetic low.

A number of other magnetic lows with a similar signature are revealed by the new data within the confines of the pipe.

No effective drilling exists over the new targets.

Similar blend to Mt Weld

Where the story gets very interesting for Kimberley Rare Earths is that the resource oxide blend is very similar to Lynas Corporations' (ASX: LYS) Mt Weld.

Another plus for the company is Cummins Range is located in Western Australia, the same as Mt Weld, and therefore will be under the same Australian supported government regulations - and will not suffer the restrictions of other companies operating in foreign countries.

Joint venture with Navigator Resources

Kimberley Rare Earths was spun-off by Navigator Resources (ASX: NAV), with the company acquiring 25% of Cummins Range upon listing via a sale agreement with Navigator.

An additional 30% interest can be earned by Kimberley Rare Earths with the expenditure of A$10 million in exploration over a four year period, with a further 25% interest through the completion of a Bankable Feasibility Study.

Cummins Range strategically positioned

The project is well positioned 120 kilometres by road to the Great Northern Highway running from Broome to Wyndham, and 130 kilometres from Halls Creek and an airstrip.

There are also several operating mines already in the area including Coyote gold, Savannah nickel-copper and Argyle diamond mines

The management

Tim Dobson comes from a broad based experience in a range of ASX listed and international mining companies, and spent four years with Placer Dome’s project development team, including roles in Canada and Chile.

Dobson then moved into a lead management role commissioning the first nickel laterite operation in Australia ‐ Centaur Mining’s Cawse operation.

Dobson also brings to the company experience in management and technical challenges of operating complex mineral processing facilities in both PNG and Australia.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18961/kimberley-rare-earths-eyes-jorc-upgrade-at-cummins-range-18961.html