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Gold Mountain (ASX: GMN) is confident its Down Under project in Brazil has the potential to contain one or more substantial rare earth element (REE) resources.
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The company is about to ramp up exploration at Down Under after a regional stream sediment program significantly enhanced the project’s mineral potential.
Executive director, David Evans, said an examination of 304 regional stream sediment samples collected across the project’s northwest tenements had confirmed “exceptional” total rare earth oxide (TREO) values and identified large-scale gold anomalies.
“Down Under rare earth project continues to deliver highly positive results, with major TREO anomalous zones identified through our regional stream sediment sampling program. These anomalies are now confirmed to be extensions of the mineralisation at Irajuba (IR-1 area).
“With additional auger drilling underway, and an expanding pipeline of high-quality targets being defined, I’m confident these programs will unlock significant value and advance the company toward defining one or more substantial REE resources.
“In addition, the large-scale gold anomalies identified, particularly where supported by arsenic, molybdenum and sulphur, indicate strong gold potential at Nova Itaipe and other areas.”
Gold Mountain has auger drilling programs underway over areas which returned the highest TREO values and additional priority zones to refine diamond drill targets.
Multiple large-scale gold-multi-element targets have been prioritised for systematic follow-up and testing utilising a reinterpretation of results from previously released stream sediment sampling programs.
Auger drill and/or soil samples will be undertaken to further define the gold targets, which are interpreted to be structurally controlled.
This work will precede detailed geophysical surveys at delineating priority drill targets and infill soil sampling aimed at delineating priority drill targets.
In late February Gold Mountain announced it had made a new rare earth discovery at the Capivara prospect within the Down Under project.
The results confirmed strong grades and high magnet rare earth content from surface, while also highlighting substantial upside potential at depth.
“With resource drilling now planned, we are accelerating Capivara’s advancement toward becoming a key rare earth asset within our Down Under portfolio,” Mr Evans said.
GMN is steady at 14.0¢. Mkt cap $27.21M.
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