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Kingfisher Mining makes high-grade Gascoyne Region rare earth discoveries during March quarter

Published 02/05/2024, 01:36 pm
Updated 02/05/2024, 02:00 pm
© Reuters.  Kingfisher Mining makes high-grade Gascoyne Region rare earth discoveries during March quarter
KGF
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Kingfisher (LON:KGF) Mining Ltd (ASX:KFM) made good progress during the March quarter on critical minerals exploration in the Gascoyne Mineral Field of Western Australia, a region known for its rich mineral potential.

Multiple high-grade discoveries

The company made multiple high-grade discoveries of rare earth elements (REE) at its Mick Well Project, where it also advanced heritage clearances, and progressed lithium exploration efforts at its Chalby Chalby Lithium Project.

Both projects are part of Kingfisher's extensive 938-square-kilometre Gascoyne tenement, which stretches 54 kilometres along the crustal-scale Chalba Shear Zone.

Recent exploration has delineated 20 kilometres of strike of high-grade REE mineralisation in dykes and veins around three large carbonatite pipe-like features.

These findings are supported by geophysical surveys that indicate the presence of monazite associated with ferrocarbonatite intrusions and high-grade veins.

Notable drilling results include 5 metres at 3.45% total rare earth oxide (TREO) with considerable neodymium and praseodymium content from one site, demonstrating the area's potential for substantial mineral deposits.

Positive price movements point to recovery

Despite the current low levels in the REE market, recent positive price movements suggest a possible improvement in the latter half of 2024.

This outlook is timely for Kingfisher as the company has also received a $200,000 government co-funding grant to target these carbonatite pipes, with heritage clearances already secured for further exploration.

Kingfisher also completed the sale of its Boolaloo Project to Black Cat Syndicate for 2 million fully paid ordinary shares valued at $560,000 and a 0.50% net smelter return royalty on future gold and copper production.

The company reports having cash and investments amounting to around $2.3 million, including proceeds from the Boolaloo Project sale.

Due to the prevailing market conditions, exploration activities at Mick Well have been temporarily scaled back, with drilling previously planned for the first half of 2024 now postponed to June, supported by the recent government grant.

Kingfisher continues to leverage geological and geophysical data to refine its exploration strategies and has positioned itself well in anticipation of market improvements.

Read more on Proactive Investors AU

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