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Zinc of Ireland Acquires WA REEs

26 May 2023 13:34
ASX: ZMI

Zinc of Ireland expands its portfolio to include Rare Earth Elements, having acquired the 183 square kilometres highly prospective Cascade Project in Western Australia.

An Emerging REE Region

The Project is located within the Munglinup Gneiss Terrane, which is positioned 70 kilometres from the town of Esperance and has been showing itself to be an emerging REE region in the wildflower state, with Meeka Metals and OD6 Metals both holding claims adjacent to Cascade.

OD6 most recently demonstrated the region’s REE potential when it reported bumper grades up to 6,605 ppm Total Rare Earth Oxides (TREO) from an extensive drill program at its Splinter Rock Project, with high-value Magnet Rare Earth Oxides comprising an average of ~22% of TREO grade.

Despite being located in a burgeoning region, Cascade has remained largely unexplored, with minimal past exploration efforts and no drilling conducted beyond a depth of approximately 3 meters from the surface.

While exploration has been limited, what activities Cascade has seen have been positive, with a historical shallow auger drilling campaign encountering mineralisation of over 1000ppm TREO at the surface and over a considerable area, with the Company believing these hits under-represent the potential of underlying REE mineralisation in the bedrock.

Results of this auger campaign also identified two drill-ready REE anomalies at the Project, with exploration licence E74/691 hosting a large coherent 6km by 3km anomaly and E74/690 holding similarly anomalous TREO enrichment along a 5km road traverse.

Getting to work

With the Project now secured, Zinc of Ireland is gearing up for an extensive exploration campaign to unlock the asset’s true REE potential.

The Company is currently in the final stages of drill hole planning and will soon commence discussions with drilling contractors. However, before commencing drilling operations, Zinc of Ireland is diligently working on confirming access agreements and obtaining the necessary social license to operate on the property.

Zinc of Ireland hopes to determine the REE levels within the saprolite and upper bedrock of the Project with this planned low-cost drill campaign.

The Company is also planning to undertake regolith mapping alongside a clay mineralogy testwork program in conjunction with drilling.

Looking Forward

The Company said that the low cost of the acquisition combined with the simple exploration model it has set up presents a strong foundation for future growth with significant near-term catalysts, with it now reviewing complementary projects for acquisition.

“ZMI is pleased to have expanded into the green metals sector through this low-cost acquisition. The exploration model that will be applied offers immediate and significant leverage to shareholders, at a time when the Esperance REE province continues to deliver exciting results and many countries seek to guarantee their own supply of REE metals from outside of China,” Non-Executive Chairman Peter Huljich said.

“We look forward to exploring this project and any other complimentary projects that ZMI may acquire,”

ZMI’s Australian Stock Exchange-listed is currently selling at 2.1c (12:42 pm UTC+ 8 hours).

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