Globe Metals & Mining (ASX: GBE) sees "exciting" potential for an economic rare earth elements (REE) deposit at the Machinga REE Joint Venture Project in Malawi, southeast Africa.
Globe recently completed A$48 million placement to fund exploration and is cashed up with A$45 million, as of May 2011, enabling the company to realise the project’s potential.
In an update on the project the company said “Machinga is in the right location, and initial results confirm the potential of the Project. Machinga North is just one of seven targets within the EPL and there is enormous potential to confirm a significant economic REE deposit.”
Significantly, Globe has earned 20% of the project to date and can earn up to 80% of the project by completing a Feasibility Study. The joint venture is with Resource Star (ASX: RSL).
Machinga North drilling highlights so far include 11 metres at 1.0% total rare earth oxide (TREO) with 330 parts per million (ppm) dysprosium (Dy2O3) from 12 metres, including 4 metres at 1.4% TREO with 492ppm Dy2O3 from 19 metres.
The majority of drill holes in Zone 10 intersected REO mineralisation near surface at depths between 10 metres and 50 metres.
Globe stated it was "excited at the now demonstrated heavy rare earth potential at Machinga, and in particular, the very high grades of dysprosium that have been encountered.”
A steady flow of results is expected from Globe over the remainder of the year that will lead to a better understanding of the REE potential at Machinga.
Importantly, the project is well located along the major Lilongwe–Zomba highway.
Rare earth prices continue to rise sharply, with dysprosium oxide spot prices now about $700 USD/kg, an 800% rise over the last three years and Globe are looking to capitalise on this trend.
In April 2011, the company entered into a strategic partnership with East China Minerals Exploration and Development Bureau (ECE), a Chinese State Owned Enterprise with extensive mining operations in China and overseas.
ECE is a key partner for Globe’s growth ambitions in Africa and is now the largest shareholder in Globe.
Globe Metals & Mining drilling focused on significant REE potential at Machinga JV in Malawi
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