Sipa Resources Ltd (ASX:SRI)'s Wolfe Basin Project in northern WA is showing promising signs of mineralisation that would confirm its rare earth element (REE) potential, in addition to the base metals the company has established.
Analysis of historical drill assays from the project, 100 kilometres southwest of Halls Creek, reveal coincident elevated REEs and a magnetic anomaly in close proximity to the Cummins (NYSE:CMI) Range REE and phosphate deposit, owned by RareX Ltd.
These findings indicate the presence of valuable REEs in the area.
"Opportunity to add value"
Sipa Resources managing director Pip Darvall said: “To date, we have focused entirely on the strong base metals potential of our Wolfe Basin project, but the identification of REEs in historical drilling is a great opportunity to add value to the project via some cost-effective work.”
Aircore drilling conducted in 2007 by Northern Star Resources (ASX:NST) Limited encountered up to 16 metres at 650 parts per million (ppm) rare earth oxides (cerium, erbium, europium, lanthanum and yttrium).
Ample room for more exploration
Only five out of the possible 15 REEs were assayed for in this drill program, leaving ample room for future exploration to uncover the full assay suite.
The drill hole intersected the contact between mafic units and a weathered granitoid, providing valuable geological context for the mineralisation.
To date, exploration activities on Sipa's tenement have been limited with only one mineral exploration hole ever drilled on the company's 260-square-kilometre E80/5491 licence.
This makes the confirmation of REE potential all the more significant, as it opens up vast possibilities for future exploration and development.
Sipa Resources plans to undertake an infill soil sampling program in the current quarter, with the hope that additional on-ground work will provide more comprehensive data and enhance the accuracy of future exploration efforts.
REEs as well as base metals
Sipa says it is committed to unlocking the full potential of the Wolfe Basin Project and will continue to prioritise the identification of REE drill targets alongside its ongoing base metal exploration focus.
With the project’s proximity to the Cummins Range REE and phosphate deposit, as well as positive historical drill results and the presence of a magnetic anomaly, Sipa Resources thinks it is well-positioned to make significant strides in the rare earth element sector.