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Globe Metals & Mining returns high grade fluorite mineralisation from drilling at Mount Muambe

Globe Metals & Mining (ASX: GBE) has received initial reverse circulation drilling results from the company's Mount Muambe REE - Fluorite Project in Mozambique, and they did not disappoint.

Results for the initial eight reverse circulation holes received from the main fluorite prospect show multiple zones of high-grade fluorite mineralisation at Mount Muambe. The fluorite grades are significantly higher than the Okoruso mine in Namibia and the Witkop fluorite mine in South Africa.

Globe has already earned 20% of the project and by the end of 2011 will have earned 51% through its exploration programs at Mt Muambe.

In addition, significant grades and widths of REE mineralisation were intersected, with many zones having high HREO/TREO ratios. Further drilling "will continue to return strong results", the company said today.

Significant enrichment in heavy rare earths was found with HREO/TREO ratios ranging from 10% to 40%.

Drill intersections show wide, high-grade, near surface fluorite zones including:

- 21 metres at 26.7% fluorite, including 9 metres at 41.1% fluorite; and
- 30 metres at 28.4% fluorite, including 15 metres at 38.0% fluorite.

Substantial REE mineralisation associated with high grade fluorite included;

- 44 metres at 1.0% TREO, including 10 metres at 2.0% TREO.

Fluorite has seen a significant price hike in recent times. Included in the list of 14 raw materials labelled “critical” by a European Union expert group.

China - by far the largest consumer and responsible for more than 50% of production globally - has adopted new policy designed to limit the export of fluorite resources.

High grades of the heavy rare earth dysprosium including 235ppm Dy2O3 over 10 metres.

Five holes in this program were selected for REE analyses. Of these holes, both LREO and HREO-enriched zones were encountered, with LREO-enriched zones generally occurring in carbonatite and HREO-enriched zones associated with fenite-hosted fluorite mineralisation.

The significant REE results returned has prompted the company to now submit all samples in the fluorite zone for routine REE analysis.

Next steps

Further drilling results from the continuing ~12,000m program are expected to flow in over the next four months. Much of the remaining drilling in 2011 will focus on pure REE targets including, but not limited to those, in zones DD and EE outside of the Main Fluorite Zone.

About the Agreement

Globe has already earned 20% of the project and by the end of 2011 will have earned 51% through its exploration programs at Mt Muambe.

Meanwhile, Globe has other strings to its bow including the multi-commodity Kanyika Niobium Project in Malawi, Africa, which will commence production of ferro-niobium in 2014, a key additive in sophisticated steels.

As well Globe also has a number of other projects at an earlier stage of development: it is earning up to an 80% interest in the Machinga Rare Earth Project in southern Malawi.