Barkly Rare Earths (ASX:BAK) is launching a substantial 10,000-metre drilling campaign targeting expansion of its 40 million tonne inferred rare earth resource at the Barkly Project, with drilling set to start imminently.
- 10,000-metre Phase 1 drilling programme to start next week
- Targets expansion of 40 Mt @ 2,100ppm TREO inferred resource
- ~400 drill holes planned across immediate and intermediate zones
- Buntine Project samples submitted, assay results due Q3 2026
- Leeuwin Wealth appointed as capital markets adviser with options payment
Major drilling campaign poised to unlock Barkly resource growth
Barkly Rare Earths is gearing up to significantly expand its rare earth footprint with a 10,000-metre Phase 1 drilling programme at the Barkly Project, Northern Territory. The campaign, comprising roughly 400 shallow holes averaging 25 metres depth, aims to test lateral extensions of the company's existing 40 million tonne inferred mineral resource, which currently grades 2,100 ppm Total Rare Earth Oxide (TREO).
Site preparations are already underway with access tracks and drill pads being constructed, supported by a recently delivered 30,000-litre diesel tank to sustain operations. Drilling is scheduled to commence next week, marking a critical step in validating the resource’s expansion potential across what Barkly terms the Immediate and Intermediate Zones.
Resource expansion strategy and geological setting
The existing 40 Mt resource is defined within two optimised pit shells, but mineralisation remains open in all directions. Previous drilling between these zones intercepted rare earth mineralisation, suggesting continuity over a 20-kilometre expanse. Barkly’s soft rock deposit benefits from mineralisation at surface and low radioactive element content, features that set it apart from many hard rock rare earth projects globally.
The company’s strategy focuses on a systematic expansion of the resource, leveraging rapid onsite analytical tools like portable X-ray fluorescence (pXRF) to guide drilling priorities in real time. This approach aims to deliver a more detailed geological understanding and support future upgrades of the resource classification from inferred to indicated or measured.
Parallel exploration and capital markets engagement
Meanwhile, Barkly has advanced its Buntine Base Metals Project, submitting rock-chip samples for assay with results expected in the third quarter of 2026. This project targets polymetallic mineralisation along a 9-kilometre strike, with historical samples showing promising grades in zinc, lead, cobalt, and nickel.
On the capital markets front, Barkly has appointed Leeuwin Wealth as its adviser to enhance investor engagement and strategy. The adviser’s remuneration involves 6 million listed options exercisable at A$0.30, reflecting confidence in Barkly’s growth trajectory and the need for robust market communication as drilling results roll out.
Incentives aligned to resource growth milestones
Notably, Barkly’s executive remuneration is linked to mineral resource growth targets, with performance milestones set at 500 Mt and 700 Mt inferred resources at a minimum grade of 1,600 ppm TREO. This alignment underscores management’s commitment to delivering tangible resource expansion and shareholder value.
With assay results from Buntine due soon and drilling updates expected throughout Q3 and Q4 2026, Barkly’s next few months will be pivotal in defining the scale and quality of its rare earth assets. The company plans to update its mineral resource estimate by the end of the year, potentially reshaping its project’s profile in the global rare earths landscape.
Bottom Line?
Barkly’s imminent drilling campaign and aligned management incentives set the stage for a critical resource expansion phase, but assay results later this year will be the true test of its growth potential.
Questions in the middle?
- Will the Phase 1 drilling confirm the lateral continuity suggested by earlier holes across the Immediate Zone?
- How will assay results from the Buntine Base Metals Project influence Barkly’s exploration priorities and capital allocation?
- What impact will Leeuwin Wealth’s capital markets strategy have on Barkly’s investor profile and funding options?