Globe Metals & Mining discovers new rare earths area at Mount Muambe

Globe Metals & Mining (ASX: GBE) has discovered a significant new area of rare earth element (REE) mineralisation from drilling at the Mount Muambe REE-Fluorite Project in Mozambique.

The REE mineralisation was intersected in regional target Zone DD and high grades of dysprosium, a sought after heavy rare earth element (HREE), were also intersected.

Highlights include 36 metres at 2.5% TREO with 169 parts per million (ppm) dysprosium from surface, including 16 metres at 4.1% TREO with 210ppm Dy2O3 from surface.

Also of significance, is the continuing expression of fluorite mineralisation at surface which could be representative of an additional mineralised trend similar to that of the Main Fluorite – REE Zone.

Given the REE mineralisation at Zone DD remains open to the north, east and south, this zone is now a priority target for Globe’s 2012 drilling program.

The 2011 reverse circulation drilling program is now complete with 5377 metres reported to date of a total 9427 metres.

David Tullberg, Globe’s chief geologist, said, “Mount Muambe continues to deliver exciting new REE discoveries. Regional exploration targets identified during our 2010 reconnaissance work are now delivering significant REE drill intercepts from surface."

The new REE discovery at Zone DD validates the company’s exploration model and proves the presence of relatively high-grade mineralisation at Mount Muambe.

Only a small area of the three kilometre diameter carbonatite crater has been drill tested to date and further discoveries likely. The company expects strong flow of positive news in the coming months.

On November 29 Globe reached a significant milestone by meeting the second year obligations under the joint venture agreement with Bala Usokoti Lda, to achieve a 51% interest in the Mount Muambe Project.

Globe now needs to deliver a JORC Resource within the next twelve months to gain a 70% interest in the project. The company expects that its current extensive drilling program will enable a resource to be delivered during the first quarter 2012.

Globe has other strings to its bow including the multi-commodity Kanyika Niobium Project in Malawi, Africa, which will commence production of ferro-niobium in 2014, a key additive in sophisticated steels.

In addition, Globe also has a number of other projects at an earlier stage of development, with the company earning up to an 80% interest in the Machinga Rare Earth Project in southern Malawi.

In April 2011, the company entered into a strategic partnership with East China Minerals Exploration and Development Bureau (ECE), a Chinese State Owned Enterprise with extensive mining operations in China and overseas.

ECE is now the largest shareholder in Globe, and a key partner for Globe’s growth ambitions in Africa.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23203/globe-metals-mining-discovers-new-rare-earths-area-at-mount-muambe-23203.html