Venture Minerals Limited (ASX:VMS, OTC:VTMLF) has increased its exposure in the rare earth elements (REE) space with an agreement to earn into the Iron Duke Project in Western Australia.
The company believes the historical Iron Duke, with only two shallow holes drilled so far, is a potentially new REE discovery.
The project is immediately south of Venture’s recently-acquired Brothers REE project and contains numerous high-priority targets for immediate drill testing.
Historically, Iron Duke has produced 49 metres at 1,313 parts per million (ppm) total rare earth oxide (TREO) from 12 metres to end of hole, including 20 metres at 1,721 ppm TREO from 20 metres from one drillhole; and 49 metres at 953 ppm TREO from 12 metres to end of hole, including 20 metres at 1,118 ppm TREO from 16 metres from another.
Plans are afoot for follow-up drilling at Iron Duke.
Aggressive move
Venture has also pegged an additional 257-square-kilometres of tenement package adjacent to both the Brothers and Iron Duke projects, bringing its total project area up to 919 square kilometres of prospective REE tenure.
The Brothers Project is a 511 square kilometre tenement package adjacent to the company’s Vulcan Prospect, which recently announced very high-grade REE results ranging up to 125,165 ppm (12.5%) TREO.
“This REE acquisition is an exciting development for the company’s shareholders, providing exposure to a potential new REE discovery, adjacent to our 100%-owned Brothers Project,” Venture managing director Andrew Radonjic said.
“These acquisitions cement Venture’s aggressive move into the REE space, an ever-increasing important part of the push into global decarbonisation.
“The company now looks forward to drilling these high priority targets later this month.”
Brothers and Iron Duke projects showing REE laterite geochemical sample results and RC drill hole REE results.
Earn-in details
The agreement with Sentinel Exploration Ltd will see Venture earning a 51% interest in Iron Duke by spending $250,000 within two years, including a minimum of $75,000 in the first year.
Upon Venture earning 51%, Sentinel has the option to contribute 49% or dilute its share to 30% with Venture spending a further $500,000 within the following 24 months to earn 70%.
Once Venture starts earning 70%, Sentinel has the option to contribute 30% or dilute to a 10% free carried interest until the completion of an economically-viable bankable feasibility study or definitive feasibility study, whichever comes first, on the project.
Sentinel must choose to either contribute or sell its remaining stake once Venture has earned 90% interest.
Merchant Holdings Pty Ltd, Sentinel’s wholly-owned subsidiary, will earn a 1% net smelter royalty until termination of the agreement.
Venture is allowed to withdraw from the project at any time after meeting the minimum first year expenditure commitment.
Eye on tin
Venture’s focus has been on developing the Mount Lindsay Tin-Tungsten Project in northwest Tasmania, already one of the world’s largest undeveloped tin-tungsten deposits.
With higher tin prices and the recognition of tin as a fundamental metal to the battery revolution, Venture has commenced an underground feasibility study on Mount Lindsay that will leverage off the previously completed open-pit feasibility work.
At the neighbouring Riley Iron Ore Mine, the mine is prepared for a quick restart should the market conditions become favourable.