Heavy Rare Earths has identified 10 interpreted high-grade heavy rare earth oxide domains within its Subron project, while expanding the project footprint and advancing drilling across South Australia. The company also completed the components of a capital raising worth up to $2.028 million, although several key milestones remain dependent on approvals, access and further technical work.
- 10 interpreted high-grade HREO domains identified across 12.9km of Subron strike
- Subron applications would expand the project area by 268% to 562km²
- South Ridge tin drilling expanded to up to 38 holes and 3,400m
- ANSTO collaboration begins mineralogy and leach testwork at Radium Hill
- Capital raising of up to $2.028 million supports exploration programs
Subron review isolates higher-value heavy rare earth zones
Heavy Rare Earths Limited (ASX:HRE) is reshaping its Western Australian flagship around a narrower but potentially higher-value target, after a strategic review identified 10 interpreted high-grade heavy rare earth oxide domains within the existing Subron resource. The domains cover about 12.9km of mineralised strike and sit within a 159 million tonne JORC Inferred Resource grading 870ppm total rare earth oxides.
The review examined data from 547 aircore holes and identified 150 significant intervals above a 300ppm HREO cut-off. Those intervals averaged 1,653ppm TREO and 579ppm HREO, equating to a 38% HREO ratio. The strongest reported result came from the Seawolf prospect: 8 metres at 3,057ppm TREO and 1,344ppm HREO from 27 metres, with HREO accounting for 42% of the interval.
That work is still an interpretation of historical drilling, magnetics and structural trends rather than a new mineral resource estimate. HRE is now re-domaining the existing resource around the higher-grade zones, with the stated aim of producing a smaller-tonnage, higher-grade and higher-value estimate. Mineralogical analysis, including SEM and TIMA work, is also being used to identify the minerals hosting the rare earths before metallurgical testwork advances.
New Subron applications capture 50 kilometres of corridors
HRE has applied for two contiguous exploration licences covering 410km², taking Subron’s total project area to 562km², a 268% increase. The applications capture interpreted strike extensions of the Blume, Hunley and Seawolf prospects, including reported intercepts of up to 3,795ppm TREO and 1,918ppm HREO over two metres.
The expansion builds on the Subron footprint expansion, which previously brought more than 50km of prospective structural corridors under the company’s control. HRE said it intends to fast-track heritage access so the newly interpreted HREO corridors can be tested by drilling, but the licences remain applications rather than granted tenure.
South Ridge drilling expands ahead of resource work
In South Australia, HRE has expanded its maiden South Ridge tin program to as many as 38 reverse-circulation and diamond holes for 3,400 metres. The program is designed to extend the mineralisation model, support a maiden Mineral Resource Estimate and provide samples for metallurgical testwork.
Surface mapping has extended the South Ridge Shear zone to 1.85km and identified several parallel structures. Historical drilling has already outlined steeply dipping tin mineralisation over 500 metres of strike and to 120 metres depth, including results of 3 metres at 4.85% tin and 5 metres at 3.22% tin. Site access has not yet begun, however, with heavy vehicle movements waiting for road conditions to improve after record rain in northern South Australia.
ANSTO work advances Radium Hill drilling case
At Radium Hill, HRE has started collaborating with ANSTO Minerals on mineralogy and leach testing of samples from the project’s 8km Critical Minerals Corridor. The work will initially examine outcropping veins, with a further 100kg sample available for concentrate and detailed metallurgical testing once the initial results are assessed.
HRE has also submitted a heritage survey request to the Wilyakali Traditional Owners and lodged a Radiation Management Plan and PEPR in preparation for maiden drilling. The company says future drill intervals will be assayed for rare earths and other critical minerals, building on surface samples that included up to 2,236ppm yttrium oxide, 959ppm scandium oxide and 3,597ppm uranium oxide.
Capital raising funds a crowded exploration agenda
The company’s exploration push is being funded by a capital raising of up to $2.028 million. This comprised a $1.3 million placement at 2.8 cents a share, with one option for every two shares, and a one-for-eight non-renounceable entitlement offer carrying the same option terms.
The entitlement offer raised $348,126.86 from shareholders, with the shortfall later placed for a further $379,992.14. The placement’s remaining shares were also issued after the quarter ended. Proceeds are earmarked for the Subron review, South Ridge drilling, ANSTO work and Radium Hill drilling, leaving the company with several technical and operational milestones to deliver from a relatively modest exploration budget.
Bottom Line?
The next value test is not the size of Subron’s footprint, but whether re-domaining, mineralogy and drilling can convert interpreted HREO corridors into a defensible higher-grade resource.
Questions in the middle?
- Will the Subron re-domaining work produce a materially higher-grade resource estimate from the existing 159Mt inventory?
- When will road access allow South Ridge drilling to begin, and will the expanded program confirm continuity beyond the historically tested areas?
- Can ANSTO testwork establish a practical leaching pathway for Radium Hill’s rare earths, scandium and uranium-bearing samples?