- Red Mountain has successfully completed the geophysical review of the Mt Mansbridge Rare Earths Project.
- Additional radiometric targets have been identified on the project. Potential of rare earth-xenotime along with heavy rare elements intensifies with the latest review.
- China has a monopoly over the rare earth market and is considering imposing restrictions on exports.
- Red Mountain is planning a drilling campaign on the project in 2021 aftermath of the wet season.
The Australian mineral explorer Red Mountain Mining Limited (ASX:RMX) has shared the historical geophysical review analysis of the Mt Mansbridge Rare Earths Project. Mt Mansbridge Project consists of three tenements in the Kimberly region of Western Australia and covers a total area of 280 KM2. The Killi Killi prospect in the project area has prospects for earth mineral xenotime.
Mt Mainsbridge Project Location Map (Source: ASX Update 28 October 2020)
Earlier, the Company has informed about the intention of acquiring 100% interest in the project from the ARD Group with an upfront payment of A$100,000 in cash consideration and issue of 50 million shares to ARD Group to seal the acquisition deal.
Red Mountain has reviewed the historical magnetic, gravity and radiometric data available of the project area. The Company merged the individual survey datasets and reprocessed them to identify possible radiometric targets to follow up.
Mt Mansbridge radiometric targets for drilling and follow up (Source: ASX update 25 November 2020)
The project area hosts a hydrothermal vein and is considered highly prospective for REE mineralisation.
Extending Horizon at Mt Mansbridge
Mt Mansbridge has three tenements- E80/5229, E80/5111 and E80/5413. The tenement E80/5413 has an anomalous occurrence of yttrium and dysprosium. Yttrium is a rare-earth element and chemically similar to lanthanides, while Dysprosium is a heavy lanthanides group element found in xenotime.
The dysprosium rich target, shown as T4 in the above map, occurs in a silicified siltstone unit in close proximity of the unconformity. The HREE mineralisation at T4 is observed in the sedimentary beds while the REE mineralisation in T1 and T2 targets are supposed to be in unconformity related system.
The REE deposits are higher around the unconformity between the Killi Killi beds and Gardiner Sandstone.
What makes REE & HREE market so attractive?
There is a significant gap in demand and supply of rare earth. China controls the market supply and has a market share of 80% in REE and up to 95% in HREE. Almost all of the world’s supply (98%) of dysprosium comes from China.
The price of Terbium reached a record high of US$1,110 per kg and dysprosium was trading at US$342 per kg in the Shanghai Metal Markets as on 23 November 2020. China has pushed the panic button by implementing export restriction of HREE and REE from 1 December 2020.
The former President Donald Trump called for identifying new sources of the rare-earth element to reduce the dependency from China. Australia has significant deposits of REE and ranks 6th in World in REE reserves.
Australia Resource Reviews Rare Earth Elements 2019 report states that Australia has 2.84 Mt of rare earth oxide plus yttrium oxide as per the December 2018 data.
The project has significant deposits of the cobalt-nickel also. The soaring demand for electric vehicles is driving the demand for nickel and other associated elements required in battery manufacturing. The project will provide Red Mountain unique advantage in rare-earths as well as in cobalt-nickel market.
Red Mountain is further refining the drill targets at Mt Mansbridge project through a staged work program. The Company is planning a drilling campaign on the project in 2021 after the wet season.
The Company closed the day trade at A$0.012 with a market cap of A$14.7 million as on 25 November 2020.