Rare earths identified at Ironback Hill

Magnetite Mines (ASX: MGT) has discovered near-surface clay hosted rare earth element (REE) mineralisation at its Ironback Hill project in South Australia.

The identification of REE followed re-testing of limited clay rich samples from archived reverse circulation drill samples originally drilled by the company at the Ironback Hill deposit from 2011-2012.

Magnetite Mines managing director Tim Dobson says the company has commenced a low-cost assessment of its vast South Australian tenement base for gold and critical minerals potential.

“While the development of the Razorback iron ore project remains our core priority, the board believes it is in shareholders’ best interests to understand the full potential of our extensive tenements in response to favourable market conditions,” he said.

“We have tasked our experienced in-house geology team to provide an assessment of mineral prospectivity on our existing ground.”

REE mineralised intervals occur within clay-rich horizons and are typically co-incident with local drainage features. The horizons at Ironback ranged from 20-40m thickness, identified from drill holes, and were noted as being well-developed.

Metallurgical test work is yet to be completed and mineral recovery rates are currently unknown. No estimate of size or grade continuity has been made at this time.

The company believes this is the first time that REE mineralisation has been detected at Ironback Hill and has planned works including verifying historic occurrences and re-assaying archived drill material.