Acquisition of highly prospective land holding with extensive REE-U pegmatites mapped at surface in the Yinnietharra region in the Gascoyne Province of Western Australia (Project)
Project Geology, Prospects and Sampling. (Credit: Reach Resources Ltd)
Reach Resources Ltd (ASX: RR1) (Reach or the Company) is pleased to announce that it has entered into a conditional Binding Heads of Agreement (HoA) to acquire all of the shares in Critical Elements Pty Ltd (CE) which holds exploration licenses EL 09/2354 and EL 09/2377 in the Gascoyne Province of Western Australia.
Overview
The Gascoyne Project, situated in the Yinnietharra region, has historically produced significant quantities of beryl, mica, bismuth, tantalum and niobium from coarse grained pegmatites. Rare earth minerals have additionally been identified. The Project consists of two granted exploration licenses covering a land area of ~59km2.
Small scale alluvial and primary pegmatite mining has been sporadically undertaken. Exploration activities have been primarily focussed on tantalum-niobium-beryl-mica and to a lesser extent uranium. Sampling of a zoned pegmatite containing discrete blebs and pods of euxinite (niobate-titanate), samarskite, and uranopyrochlore.
Sampling conducted to date is only from these two localities within the tenure and only of the mineralisation. Sampling was inherently biased through focusing only on the visibly mineralised material in order to gain an understanding of the elemental content of the mineralisation. Systematic sampling is required to understand the distribution and extent of mineralisation.
Location
The Gascoyne Project is located 250km east of Carnarvon, 900km by road to the north of Perth. Access to the Project is via the Carnarvon or Mullewa to Diary Creek homestead thence along the Mt Augustus Road. Access within the tenure is via historical exploration/mining and station tracks.
Regional Geology
The Project is located within the Gascoyne Province which is located at the western end of the Capricorn Orogen, a major zone of tectonism formed between the Archean Yilgarn and Pilbara Cratons
Basement to the province consists of the Glenburgh Terrane, which comprises granitic rocks of the Halfway Gneiss with igneous crystallization ages typically between 2660 and 2430 Ma, psammitic and pelitic rocks of the Moogie Metamorphics deposited between 2240 and 2125 Ma, and a 2005–1970 Ma Andean- type batholith (Dalgaringa Supersuite).
Middle Proterozoic sediments of the Bangamall Basin unconformably overlay the Gascoyne Province to the east and Palaeozoic Carnarvon Basin sediments to the West.
Previous Exploration
Exploration in the region commenced in the early 1970’s which led to the identification of multiple uranium occurrences within calcrete, weathered bedrocks and clays. Regional airborne radiometric surveys identified numerous radiometric anomalies which coincided with mineralised pegmatites.
Wabli Creek
Pegmatites at Wabli Creek were evaluated cursorily by Great Mines Ltd, Kookynie Resources NL and Nickel Mines Ltd whilst targeting calcrete hosted uranium deposits between 1974 and 1983.
Two mineralised pegmatites have been the focus of exploration to date at Wabli. The No1 vein has been mapped over 10m in a pit and has potential of extending further underneath soil cover. Reconnaissance assays indicate significant levels of critical element like Nb and Ta.
Proposed exploration
In order to understand the extent and potential of the mineralisation evident across the
Project the following activities are planned to be undertaken:
- Satellite imagery interpretation to map extents of historical mining activities
- Field reconnaissance and sampling of pegmatites and historical mining activities undertaken across site in order to understand zonation and grade distribution
- Scout drill testing of the pegmatites to determine their geometry and mineralisation potential
- Assays will be undertaken by fusion ICPMS to ensure complete refractory phase (xenotime) dissolution.
Key terms of the Proposed Transaction
The Company proposes to acquire 100% of the issued capital of Critical Elements Pty Ltd. Critical Elements Pty Ltd and its respective shareholders are not related parties of the Company. The consideration payable for the Proposed Acquisition pursuant to the HoA is 40 million fully paid ordinary shares.
Completion of the Proposed Acquisition is subject to final due diligence which is to be completed by the Company within the next 20 days.
Source: Company Press Release