Neotech Metals (CSE: NTMC) is expanding its holdings in the rare earth elements space, revealing this morning it has optioned a second rare earth project.
The project, referred to as the Thor Rare Earth Elements project, consists of 22 mining claimins in the Mojave Desert, south of Las Vegas, Nevada. The claims, originally staked in 2009 and 2010, are contiguous and contain monazite-apatite-xenotime vein systems, which are prospective for rare earth elements.
The option, which enables the company to earn up to 100% ownership of the property, amounts to payments of US$200,000 in cash and US$400,000 in shares.
The primary area prospective for rare earth elements is referred to as the Lopez Trend, where initial exploration has seen samples with values of up to 10.6% rare earth elements and yttrium, and 1.45% thorium. A channel sample that was 11 metres in length meanwhile returned an average of 1.00% rare earth elements and yttrium. The Lopez Trend overall covers an area said to be 2,500 metres long.
Neotech highlighted that the Thor project is found within 30 kilometres of the Mountain Pass Mine owned by MP Minerals Copr, which accounts for 15% of the global rare earth supply.
In terms of exploration, specifics were not provided. Neotech indicated it will conducted a phase 1 program amounting to geophysics, trenching, sampling, and an initial phase of shallow drilling, however the size of the program was not outlined, nor was a timeline.
The acquisition of the Thor project follows Neotech conducting a sampling program at its TREO property in British Columbia, which is adjacent to Defense Metals’ (TSXV: DEFN) Wicheeda rare earth element property. Neotech collected 1,700 soil samples, 75 stream sediment samples, and 30 rock samples under that program, ahead of “scaled-up exploration” that is planned for next year.
Historical drilling has shown up to 4.7% total rare earth oxides (TREO) over 0.9 metres at the TREO property. Comparatively, Defense Metals’ Wicheeda project next door has a resource estimate of 6.4 million tonnes measured at 2.86% TREO, and 27.8 million indicated tonnes of 1.84% TREO.
The excitement of the potential for TREO, based on the success of the Wicheeda project, has led to a recent run-up in Neotech’s valuation.
Neotech Metals last traded at $1.72 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
