Kimberley Rare Earths dials in to pegmatite hosted rare earth project in Mozambique

Kimberley Rare Earths (ASX: KRE) has hit the ground running in just the first few months of public life after being admitted to the ASX after a successful IPO in mid-2011.

Kimberley Rare Earths is already achieving the objectives set out in the IPO, which stated that the company will assess and, if warranted, acquire other rare earths projects that have potential to add value.

The company has now secured a significant interest in a strategic pegmatite hosted rare earth project in Mozambique, which hosts major exploration potential, including for xenotime‐hosted yttrium, dysprosium and erbium.
Artisanal miners have historically exploited the area for topaz, aquamarine and amazonite gemstones of exceptional quality.

Kimberley Rare Earths can earn up to a 90% interest in the Malilongue project, with terms including an up front $300,000 cash payment to earn a 40% joint venture interest in the non-gemstone rights.

Additional consideration comprises a cumulative $4 million payment over 5 years to earn up to 80%, with a right to increase to 90% by sole funding to production.

The agreement has been made with Great Western Mining (GWM), a gemstone mining company incorporated in Mozambique.

Tim Dobson, chief executive officer of Kimberley Rare Earths, provided some very positive comments on the African joint venture, “Malilongue presents an excellent focal point for our exploration team to add medium to long term value while our development focus rests squarely with Cummins Range.

"Additionally, the new project has exciting potential for yttrium, dysprosium and terbium, all rare earth metals in critically short global supply, and complements the light rare earth project being developed at Cummins Range.”

The exclusivity period for the project will expire on 12th November following which, subject to due diligence, the company intends to complete the first farm-in transaction, and commence exploration activities.


Impressive historical data

No doubt attracting Kimberley Rare Earths to the Mozambique domiciled project is the historical data, which includes rock chip samples assaying over 20% TREO.

Added to this is concentrates from 38 separate pits located throughout the pegmatite field sampled by the current owner, which have averaged over 1000ppm TREO with 55% being LREO, 25% HREO and 20% yttrium oxide.

A sample extracted from the eluvial beds was subjected to mineralogical examination by a scanning electron microscope and found to comprise major xenotime and minor monazite and zircon.

In addition to yttrium, the xenotime shows appreciable dysprosium and erbium.

A further boost to the prospectivity is that the pegmatite-hosted mineralisation at Malilongue shows many similarities to Quest Resources’ Strange Lake deposit in Quebec Canada.

Quest has a 43‐101 compliant Indicated Mineral Resource of 36.4 million tonnes at 1.16% TREO with 57% being LREO, 15% HREO and 28% yttrium oxide.


Strategic project location

Malilongue is located in western Mozambique about 300 kilometres west of the regional mining centre of Tete, and comprises two tenements, Mining Concession 1133C and Prospecting License 1583L.

Another plus for the project is good access with grid hydroelectric power, with mobile phone coverage located 50 kilometres to the east.

GWM has established some basic infrastructure within the mining concession including a secure office / accommodation / workshop complex and have fully operational earth moving, haulage and treatment facilities associated with their gemstone operation.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20179/kimberley-rare-earths-dials-in-to-pegmatite-hosted-rare-earth-project-in-mozambique-20179.html