Caspin Resources Ltd (ASX:CPN) is preparing for an aggressive multi-rig campaign at the Serradella prospect of its Yarawindah Brook Nickel-Copper-Platinum Group Elements (PGE) Project in Western Australia, after re-assaying of previous drilling results revealed an “exceptional high-grade rhodium intersection”.
The company selected specific zones of mineralisation from YARC0036 to re-assay for the full six PGE suite of elements, consisting of iridium, osmium, rhodium and ruthenium, as well as platinum and palladium.
The exercise returned 17 metres at 1.73 g/t platinum, 0.39 g/t palladium, 0.22 g/t rhodium, 0.01 g/t gold (or 2.33 g/t 4E) and 0.17% nickel from 131 metres, including 3 metres at 4.60 g/t platinum, 0.87 g/t palladium, 0.56 g/t rhodium and 0.01 g/t gold (or 6.04 g/t 4E) and 0.17% nickel from 144 metres.
The peak rhodium grade returned was 0.69 g/t.
Shares higher
Caspin said the results had raised the value of Serradella, a conceptual target the company has rapidly developed less than 12 months ago.
Investors have responded positively, with shares as much as 24.62% higher this morning to $0.81.
Serradella is open in multiple directions, with potentially better mineralisation still to be found, as drilling progresses towards the basal contact position of the intrusion.
Section showing YARC0036 at the Serradella Prospect
"Outstanding result"
Caspin chief executive officer Greg Miles said: “This is an outstanding result that clearly celebrates Serradella as a major PGE discovery. Our best drill result just got better.
"When we discovered rhodium in our initial discovery hole, YARC0022, we commenced a large re-assay program in the hope that further mineralisation would be found. This exercise has surpassed our expectations and with such high-grade results, clearly differentiates Yarawindah Brook from other PGE projects.
“The results of the past few months have proven to be a breakthrough for the project and provide us confidence to embark on an aggressive drill campaign through the summer season.”
Significantly Serradella
This is the second significant rhodium result following the initial discovery in YARC0022, which returned 13 metres at 0.17 g/t palladium, 0.74 g/t platinum, 0.11 g/t rhodium, 0.26% nickel and 0.21% copper from 101 metres, including 2 metres at 0.40 g/t palladium, 2.45 g/t platinum, 0.41 g/t rhodium, 0.23% nickel and 0.09% copper from 112 metres.
Both YARC0036 and YARC0022 are part of the ‘upper’ Serradella position.
From the ‘lower’ Serradella position, significant rhodium targets were discovered such as 1-metre at 0.20 g/t rhodium from 169 metres in YARC0042.
These results demonstrate the potential for significant mineralisation throughout Serradella.
More rhodium discovery
Caspin has also retrieved from storage a small number of PGE mineralised intervals from the 2021 drill program to complete a ‘sighter’ program across the Central Yarabrook Prospect.
Analysis of only 64 samples has returned significant grades of rhodium associated with platinum and palladium, with a peak value of 0.15 g/t rhodium.
The results from Central Yarabrook encourage further exploration as they show the potential for rhodium to occur throughout the Yarabrook intrusion.
The company will review previous drilling and the economic potential of the prospect, particularly if rhodium mineralisation can be shown to have continuity, even over narrow widths.
A bit about rhodium prices
The value of rhodium has ranged from US$13,500 per ounce to US$15,500 over the past three months after touching US$22,000 earlier in the year.
This compares to palladium, which has ranged from US$1,800/ounce to US$2,200 and gold, between US$1,700/ounce and US$1,800 over the same time.
Assuming metallurgical recoveries are equal, even small additions of rhodium can have an enormous impact on project economics.
What next?
Yarabrook Hill prospects, geology and significant rhodium assays.
The current rhodium dataset is relatively small but the understanding of the mineralisation within the project will improve as more results are received.
While six PGE assays are still pending, notably from key holes in the ‘upper’ Serradella position, the current set is enough to give Caspin the confidence to commit to an aggressive, multi-rig drilling campaign in Serradella commencing in late October through to the end of the summer season.
But before this begins, the company will resume drilling at the Mount Squires Project following the positive early drilling results from the Duchess Prospect. This program should commence by the end of this month.
Both programs are fully funded from Caspin’s existing cash reserves.
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