Globe spins out Mozambique drill results

THE DRILL SERGEANT: Africa-focused resource company Globe Metals & Mining has received the first batch of analytical results from a recently-completed Main Fluorite – Rare Earth Element (REE) Zone drilling program at the company’s Mount Muambe project in Mozambique.

Results for the initial eight reverse circulation drill holes from the Main fluorite prospect have demonstrated multiple zones of high-grade fluorite mineralisation at Mount Muambe.

Significant grades and widths of REE mineralisation were intersected, with many zones having high Heavy Rare Earth Oxide (HREO) to Total Rare Earth Oxide (TREO) ratios.

Globe Metals said that it expects further drilling will continue to return strong results.

Highlights from the initial eight RC holes show wide, high-grade, near surface fluorite zones including:

–    21 metres at 26.7 per cent fluorite, including 9 metres at 41.1 per cent fluorite; and

–    30m at 28.4% fluorite, including 15m at 38.0% fluorite and 44m at 1.0% TREO, including 10m at 2.0% TREO.

“Fluorite has seen a significant price hike in recent times,” Globe Metals said in its ASX announcement.

“Included in the list of 14 raw materials labelled “critical” by a European Union expert group, it is no surprise that China – by far the largest consumer and responsible for more than 50% of production globally – has adopted new policy designed to limit the export of fluorite resources.”

Five holes in the recently completed program were selected for REE analyses.

In all these holes, the company said it had encountered both LREO and HREO-enriched zones.

The amount of significant REE results returned has prompted the company to submit all samples taken from the fluorite zone for routine REE analysis.

Further drilling results are expected to follow over the next four months as the drilling program of around12,000 metres continues.

Globe Metals will be focussing most of the remaining drilling to be completed this year on pure REE targets including, but not limited to those, in zones DD and EE outside of the Main Fluorite Zone.

The company has already earned 20% of the project and by the end of 2011 will have earned 51% through its exploration programs at Mount Muambe.

Globe Metals is also currently running exploration activity across a number of other projects it has, which are at an earlier stage of development than Mount Muambe.

The company is earning up to an 80% interest in the Machinga rare earth project in southern Malawi, and can earn up to a 90% interest in the Mount Muambe REE – Fluorite project.