Southern Gold Ltd (ASX:SAU) has identified high-grade rare earth element (REE) mineralisation at the Hongcheon deposit of the Jangnam Project in South Korea, with rock chip samples grading up to 3.27% total rare earth oxides (TREO).
SAU collected rock chip samples from a broad area around the discovery area, having identified a relationship between REE-enriched ironstones and fenite typically associated with carbonatite, a type of host rock for rare earths.
The rock chip results widened the known footprint of the REE discovery at the Hongcheon fault trend, which has previously produced REE grades in rock chip samples up to 14.75% TREO, and pointed to a southern carbonatite discovery along strike from the Hongcheon deposit.
Favourable geology for economical REEs
“The team has made great progress enhancing our understanding of Jangnam’s geology and REE mineralisation – these efforts are pivotal to help refine our exploration strategy,” Southern Gold managing director Robert Smillie said.
“I am particularly pleased to see new higher-grade TREO values in our main REE discovery area.
“This not only reinforces the importance of this discovery but also bolsters our confidence in its significance as we move towards drill testing this area in FYQ3-Q4.
“Most REE minerals are difficult to process, so we are fortunate to have monazite at Jangnam, which is the key ore mineral in many economic REE deposits.
“The favourable low levels of thorium and uranium at Jangnam are also noteworthy. Unlike other deposits, where Thorium concentrations can reach several weight per cent, Jangnam stands out for its low deleterious values.
“The regional exploration demonstrates the significant wider REE potential of Jangnam, and I look forward to the team defining additional target areas in the months ahead.”
SAU has now defined REE mineralisation over a 21-kilometre prospective trend, based on anomalous stream-sediment samples grading up to 0.3% TREO.
Overview map of the Jangnam REE Project: note anomalous stream-sediment samples to the north of the project area; the central discovery area with the highest REE grade of 3.27% TREO along strike from the Hongcheon deposit; and significant REE rock-chip grades to the south.
From here, SAU intends to trench sample and run a drone magnetics survey over the discovery area in preparation for drilling in the third and fourth quarters of this financial year.