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Caspin Resources surges on delivering ‘groundbreaking’ rare earth discovery at Mount Squires Project

Published 04/05/2023, 12:12 pm
Updated 04/05/2023, 01:00 pm
© Reuters.  Caspin Resources surges on delivering ‘groundbreaking’ rare earth discovery at Mount Squires Project

Caspin Resources Ltd (ASX:CPN) is trading higher upon identifying significant rare earth elements (REE) from its recent assaying of Duchess aircore holes at its Mount Squires Project in Western Australia, which the company describes as a “sensational discovery”.

Stand-out assays include:

  • 46 metres at 0.71% TREO from 32 metres, including 22 metres at 1.25% TREO from 48 metres;
  • 19 metres at 0.41% TREO from surface; including 4 metres at 0.80% TREO from 8 metres;
  • 7 metres at 0.32% TREO from surface including 2 metres at 0.57% TREO from 5 metres to end of hole; and
  • 10 metres at 0.14% TREO from 36 metres.

The discovery highlights the potential to identify significant deposits of REE elsewhere in the project with REE focused targeting and geological review underway.

Furthermore, Caspin is planning a reverse circulation (RC) drill program to test extensions and obtain samples for metallurgical test work.

The markets have welcomed the news with shares trading as high as $0.48, up 37% from prevous close.

“Sensational discovery”

Caspin CEO Greg Miles said: “This is a sensational discovery given the tiny scale of the assay program.

"The company has long recognised the conceptual potential for rare earth mineralisation at the Mount Squires Project, but given the more obvious prospectivity for nickel, copper and gold this potential had not been investigated until now.

“We’ve now made a significant rare earth discovery, of a relatively unique style in Australia, in a province with no previous systematic exploration for rare earths.

“An important aspect of these results is that it highlights the potential for rare earth mineralisation throughout the project.

“We are barely past the start line on assessing this opportunity.

“The result from MSAC0141 is exceptional and may already represent a discovery hole in a new rare earth oxide deposit, but there are also potentially more targets beyond the Duchess prospect.

“I commend our team for an exceptional piece of exploration geoscience and look forward to the upcoming drilling, further re-assaying, and the next success.”

Drill program

Caspin drilled over 4,000 metres of aircore at the Duchess prospect in 2022, testing a large, discrete molybdenum-copper-gold soil geochemical anomaly.

The program identified gold mineralisation hosted by quartz veins at Duchess West and highly anomalous molybdenum mineralisation, with lesser copper and lead, at what became known as the Duchess East Prospect.

Caspin routinely assays for lanthanum as part of its standard 45-element assay suite, which led to the recognition of some highly anomalous values in the Duchess East drilling.

These assays were used as a guide for a selected program of comprehensive REE re-assaying.

Forward plan

Caspin has kicked off its field activities at Mount Squires, which will include an RC rig mobilising to site in June.

The drill program will now include step-out drilling around the site of MSAC0141 and deeper drilling beneath MSAC0130 and MSAC0224.

This will test potential extensions of high-grade mineralisation as well as obtain sample for metallurgical testwork.

The company may also undertake petrography work to better understand REE deportment within the various weathering states of mineralisation.

The additional re-assaying in the southeast of Duchess may yet provide an additional drill target if results are positive.

Read more on Proactive Investors AU

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