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DY6 Metals (ASX:DY6) has this week more than doubled its land holdings in central Cameroon, to as much as 7,554 square kilometres in one move, after buying up another six exploration licences for its Central Rutile project.
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The deal will see current licence holders, NEM Minerals, hand over the Cameroonian applications for $125,000 in cash and two million DY6 shares at 10c each.
DY6 was eager to buy up the contiguous licences because they’re underlain by a bedrock of kyanite-bearing mica schist believed to be the primary source of the rutile in the area. Even better in the explorer’s eyes, it was then concentrated and upgraded within the overlying saprolite material during weathering.
A standout among the licences is the eastern-most Ayene II, which is underlain by alkaline intrusions and granitoids; it returned high-grade monazite (up to 73%) as well as zircon (up to 28%) during early testing.
“Highly encouraging” results from neighbouring Peak Minerals (ASX:PUA) at the Minta Project to the north were another reason DY6 made the purchase.
During recent on-site visits to the Cameroon area in question, a technical team working for DY6 spotted both aluvial and eluvial (residual) sources of rutile and heavy mineral sands across the new license areas.
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“Desktop work and a recent due diligence site visit indicates that the Weaver Project area is underlain by the same favourable geology that we have seen at our existing Central Rutile Project,” DY6’s chairman, Dan Smith, said.
The helmsman added his team were “looking forward to getting back in the field.”
DY6 enjoyed a green day on the news, popping +4.8% to 21.5cps.
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