Artemis acquires rare earths project and to commence exploration at Yangibana, WA Wednesday , 27 Jan 2010
Key Points:
Artemis has acquired the Yangibana Rare Earth Element (REE) Project in Western Australia Exploration for REE to commence in the current quarter Previous surface samples returned high grades up to 19.44% Total Rare Earth Oxide (TREO)* Historical drilling of 80 holes for 3,500 metres in the project area An in-house review identifies a potentially significant Rare Earth Project at Yangibana Numerous prospects at Yangibana contain REE - 6 of which occur over a strike length in excess of 7km Yangibana hosts rare earth mineralisation with values up to 20% neodymium oxide (Nd2O5) and 1,600ppm europium oxide (Eu2O3) (neodymium is used in batteries and magnets, while europium is used in televisions and fluoro lamps) Artemis Resources Limited (ASX Code: ARV) announced today that it has acquired the Yangibana Rare Earth Element Project in Western Australia with exploration due to commence in the current quarter. Artemis views rare earth metals as strategic metals owing to strong market fundamentals, the hi-tech applications of REE's and the dominance of China as a world supplier to an increasing market.
Yangibana (along with Mt. Weld) is regarded as one of Western Australia's more important REE occurrences and is located 260 km northeast of the regional centre of Carnarvon in Western Australia. Previous exploration at Yangibana has shown average grades of around 2.84% Total Rare Earth Oxides (TREO).
The Yangibana deposit contains anomalous Light Rare Earth Elements (LREE) including samarium (Sm) and neodymium (Nd), as well as Heavy Rare Earth Elements (HREE) including europium (Eu), terbium (Tb) and dysprosium (Dy). Yangibana comprises numerous prospects (Figure 1), six of which are clustered along a 7 kilometre west northwest trending linear strike.
Significant exploration has taken place at Yangibana including recent surface samples, RC and diamond drilling undertaken by Newmont Pty Ltd in the mid-1970's and Challenger Mining Corporation NL and Hurlston Pty Ltd ("Challenger") in 1985 and 1991 respectively.
During 1988, Challenger Mining drilled 80 RC holes (for 3,500m) at Yangibana and delineated a target REE resource. Drilling was only conducted at shallow depths. A report completed late in Challenger's tenure recommended further drilling to test the extent of the mineralisation. Limited funding at the time resulted in this program of drilling not being undertaken.
Recent work carried out in 2007-08 included surface rock chip sampling over a 2 kilometre strike length, testing 4 of the prospects. Fifty-six (56) samples returned results averaging 2.84% Total Rare Earth Oxides ("TREO") with an individual sample assaying 19.44% TREO.
Work planned by Artemis
Artemis' geological team is evaluating the distribution of rare earth elements in the gossan samples and drilling results to determine higher grade zones for priority follow up. A study is being commissioned using previous drilling results to identify the characteristics and parameters of the historical target resource. A drilling program will be formulated as part of the company's plan to establish a JORC-compliant resource at Yangibana.
Currently, China has a virtual monopoly on REE supply, producing in excess of 95% of world REE production. In late 2009 China increased supply restrictions on the exporting of rare earths - a policy which has helped to highlight the strategic importance of REE. In line with this strategic importance, Artemis has acquired a 70% interest in the Yangibana Project to provide the company with strong exposure to a market dominated by increasing demand, increasing prices and limited supply.
Artemis' Chairman Mr Chalabian commented: "Artemis is well positioned to take advantage of the increasing demand in rare earths with the commencement of exploration at an important rare earth metals project at Yangibana."
Note Total Rare Earth Oxide (TREO) comprises the sum of the element/oxide ratio conversions of all 14 rare earth elements plus yttrium.
ARV Price at posting:
6.4¢ Sentiment: Hold Disclosure: Held
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