Arafura drilling expands Nolans Bore

THE DRILL SERGEANT: Australian rare earths company Arafura Resources has confirmed the presence of further rare earths mineralisation at depth at its 100 per cent owned Nolans Bore deposit in the Northern Territory.

The results come as Arafura is approaching the end of a resource development drill program designed to test the Nolans Bore rare earths resource to a maximum total drilled depth of about 250 metres.

Assays from four drill holes that were carried out west and north-west of Nolans Bore are the first results Arafura has received from beyond the deposit’s Central North Zone from the systematic deep drilling campaign.

The best mineralised intercepts include:

– 31.7 metres at 2.3% rare earth oxides, 10.4% phosphorous pentoxide and 0.39 pound per tonne uranium from 161.9 metres;

– 29.8m at 3.5% REO, 15.4% phosphorous pentoxide and 0.57 lb/t uranium from 126.1m;

– 16.0m at 4.4% REO, 21.4% phosphorous pentoxide and 0.73 lb/t uranium from 233.4m;

– 37.5m at 3.7% REO, 17.0% phosphorous pentoxide and 0.65 lb/t uranium from 154.0m; and

– 17.3m at 4.5% REO, 22.1% phosphorous pentoxide and 0.81 lb/t uranium from 218.1m.

In its announcement to the Australian Securities Exchange, Arafura said the deeper mineralisation is likely to contribute to new JORC resources in a revised estimate for Nolans Bore, the company anticipates by the end of the year.

According to Arafura geological and radiometric logging of diamond core from the current campaign across other areas of the deposit have demonstrated widespread rare earths mineralisation at depth.

“Assays from deeper mineralised drill intercepts reported today are highly encouraging and, consistent with our view that the rare earths market will remain in undersupply this decade, very important in the context of assessing the extent of value creating expansion opportunities an increased resource at Nolans Bore may provide,” Arafura Resources managing director and CEO Dr Steve Ward said in the company’s announcement.

“By the end of the current campaign, we will have completed almost 100 kilometres of drilling of all types at Nolans Bore, representing a very substantial investment by the company that reflects the quality of the asset.
 
“Arafura has a number of work streams in progress as part of the Nolans Project Bankable Feasibility Study.

“Completing the expansion drilling program on schedule demonstrates our determination to complete the BFS as soon as possible, as we work towards securing project finance by the end of 2012.”