THE BOURSE WHISPERER: Southern Crown Resources has completed a JORC compliant resource estimate on the soil target at its Xiluvo Rare Earth Element (REE) project in Mozambique.
The company has estimated an Indicated category Mineral Resource of 1.1 million tonnes at 2.05 per cent total rare earth oxides (TREO) has been estimated at a cut-off grade of one per cent TREO.
Southern Crown claims the resource contains a good balance of light and heavy rare earth elements containing an above average quantity of the five critical rare earth oxides (CREO) neodymium, europium, terbium, dysprosium and yttrium.
This group of CREO is projected to be in critical undersupply for the next five to ten years.
“Generation of an indicated JORC resource at our Xiluvo REE project marks an important milestone for Southern Crown,” the company’s managing director Dr Jock Harmer said in its announcement to the Australian Securities Exchange.
“Being unconsolidated and lying on surface, the soils represent a rare earth deposit that is expected to be easy and cheap to mine, positioned alongside excellent rail and paved road access to the port of Beira only 110 kilometres away.
“Achieving an indicated category resource on one of our projects within six months of acquisition is a fantastic achievement.
“We will now look to embark on a comprehensive program of metallurgical tests to identify an optimum process to concentrate the REE from the soils.”
Southern Crown’s Xiluvo REE project covers part of the Monte Xiluvo carbonatite complex situated in the Sofala Province of Mozambique inland of the major Mozambique port of Beira.
Geological sketch map of the Monte Xiluvo carbonatite complex showing the location of the REE enriched soils. Source: Company announcement
The Xiluvo complex is bound on the northern side by the paved EN6 national road and on the west and south by the national rail routes linking Zimbabwe (via Mutare) and Beira.
Southern Crown has a Joint Venture Agreement with Promac Lda, a Mozambican quarrying and construction company that holds a mining license over the area and operates a quarrying operation exploiting the calcitic carbonatite for use as construction aggregate.
Under the terms of the agreement Southern Crown can earn up to 85 per cent ownership of the REE assets by spending US$1,000,000 developing the project.