Gold Mountain (ASX:GMN) secure Down Under REEDecember 1, 2023
Gold Mountain has secured its strategic 57 tenement, 100,000-hectare position along strike from other Australian companies moving on Brazil’s enormous and untapped rare earth resources.
With the world’s third largest reserves, a proven mining industry, and high potential for true ionic clay deposits, Brazil is as likely looking as anywhere to become the next major source outside of China, and Gold Mountain has now stamped its Down Under REE Project alongside its Australian neighbours.
Brazilian Rare Earths plan to hit the ASX under the BRE ticker with a JORC compliant 510 Mt resource @1,513 ppm Total Rare Earth Oxide and a market cap of around $315 million and ASX-listed Equinox Resources joined the fray this week with a strategic placement to stake its own claim.
The Down Under project lies contiguous to BRE’s Rocha de Rocha tenements which remain largely unexplored, with a lofty 8-12 billion tonnes at 1000-1500 ppm Exploration Target demonstrating the raw scale on offer.
Gold Mountain’s geologists believe large areas now under its control are highly prospective for similar deposits found at Rocha de Rocha, the very high-grade and easily mined Ionic Adsorption Clay deposits which have formed the backbone of China’s dominance in the sector.
The Rocha de Rocha deposits have also been notable for holding over 20 per cent of the magnet Rare Earth Oxides, estimated to represent 98% of the market by value by 2030.
The company saw significant progress made by BRE geologists in identifying the controls on mineralisation and the relationship to host sequences and structure, saw the potential in its own application areas, and leapt into tenements within a 20-40 km wide radiometric thorium-uranium anomaly definitive of a productive zone.
“GMN is excited to have secured its Down Under tenements in this potentially global high quality REE province with both ion adsorption type deposits and a new type of very high grade REE deposit, amenable to gravity separation in the weathered zone,” the company said.
“These strategic applications provides a straightforward pathway to GMN to be a major participant in the rapidly increasing clay-hosted rare earths global supply chain.”
Gold Mountain will now get to work on studies to assess weathering profile preservation alongside targeted sampling and mapping to spot up high-priority targets for the drill.
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