Amid a global search for sources of critical minerals, AuKing Mining Ltd (ASX:AKN) has entered into an option agreement to acquire the Myoff Creek niobium/rare earth elements (REE) project in British Columbia, Canada.
The project is in the strategic South-Central mining region of British Columbia, an area renowned for its rich mineral deposits, mineral extraction and processing.
British Columbia hosts several significant niobium/REE projects including the 34.2 million tonnes at 2% TREO Wicheeda Project, the 53 million tonnes at 1,680 ppm niobium Blue River Project and the South-Central region hosts major mining operations including Teck Resources’ Highland Valley Copper Mine and Hudbay Minerals Inc’s Copper Mountain Mine.
At the Myoff Creek Project, historical exploration identified an extensive near-surface carbonatite mineralisation zone spanning 1.4 kilometres by 400 metres. Notable high-grade intercepts included 0.93% niobium and 2.06% total rare earth oxides (TREO).
The mineralisation remains open, pending verification, at depth and along strike, highlighting the potential for further discoveries and expansion. Maximum detection limits of niobium and cerium were found in rock chips around 2-kilometres from the historically drilled zone, suggesting a wider mineralised area.
The acquisition will add to AuKing’s existing project portfolio that comprises the Koongie Park Copper-Zinc Project in Western Australia and a number of uranium and copper projects in Tanzania.
Exploration ahead
With the global search for sources of critical minerals in full steam, AuKing managing director Paul Williams welcomed the opportunity to immediately commence exploration activities once the acquisition is complete.
“Myoff Creek is situated in south-eastern British Columbia and has been the subject of exploration activities for 40 years. Previous exploration activities (including drilling programs) have identified a 1.4-kilometre by 0.4-kilometre area of near-surface niobium-REE bearing carbonatite hosted mineralisation,” Williams said.
“Upon completion of the proposed acquisition of Myoff Creek, AuKing plans to immediately carry out a detailed soil sampling and initial drilling program, based on the historical workings.”
Drill targets have been identified, setting the stage for an extensive upcoming work program aimed at further exploration and development. AuKing suggests that this planned activity could significantly advance the understanding and potential exploitation of this mineral-rich area.
There are two types of carbonatite recognised in the area – type I, the intrusive phase (the REN carbonatite) and type II, the extrusive phase (the Mount Grace carbonatite – MGC). These carbonatites are generally rich in rare earths and other critical minerals with low impurities, while remaining close to the surface.
With both the MGC and REN carbonatites to focus on, the Myoff Creek project contains more than 3 kilometres of high-priority strike zone. AuKing notes that there is also potential for multiple high-grade “nodes” where the carbonatite flexes, bends and bulges – creating the primary target zones for potential commercial deposits.
The project site features “excellent” accessibility, with well-maintained roads leading directly to the area, facilitating easy transport of equipment and personnel for exploration activities.
The agreement
AuKing has entered into an option agreement to acquire North American Exploration Pty Ltd (NAE), which owns 100% of the eight contiguous claims that comprise the Myoff Creek Project. The option must be exercised by July 26, 2024, with AuKing to pay a non-refundable A$50,000 fee on signing the agreement.
In consideration for the acquisition, AuKing will issue 57 million new AKN shares at an issue price of 1.5 cents per share and 28.5 million free-attaching options exercisable at 3 cents on or before April 30, 2027 to the existing NAE shareholders and their nominees.