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Globe Metals & Mining commences drilling to extend heavy rare earth oxides zones at Machinga

Globe Metals & Mining (ASX: GBE) has begun a drilling campaign to target and extend significant heavy rare earth oxides and niobium mineralisation at the Machinga Rare Earth Elements (NYSEMKT:REE) Project in Malawi.

The 4,000 metre drilling program will focus on confirming and extending the multiple zones of near surface, high grade heavy rare earth oxide mineralisation in Zone 10 through Zone 70 of the Machinga Main Zone, as well as target Lingoni anomalies.

Intercepts from a 2010 drilling program identified the presence of very high heavy rare earth oxides (HREO)/total rare earth oxides (TREO) ratios averaging 33%. These results included high grades of the much sought after element dysprosium, averaging 375 parts per million with a peak result of 971 parts per million.

Dysprosium is one of only five REEs deemed critical to the clean energy industry by the U.S. Department of Energy in 2011. Global supply shortages of newly produced dysprosium oxide are expected until 2015 at the earliest.

Planned drilling will also test Zone 40, where previous intersections showed slightly higher niobium and tantalum grades and ratios to TREO, and somewhat lower TREO grades.

High grade niobium mineralisation intersected included 15 metres at 0.45% with 0.75% niobium oxide including 5 metres at 0.54% TREO and 1.34% niobium oxide.

Detailed analysis of follow-up soil and auger results for the Lingoni target revealed several anomalous zones of REE mineralisation.

A 1000 metre drill plan has subsequently been designed to test two REE targets and one niobium-heavy rare earth elements target at Lingoni.

Globe trading at under cash backing

With A$42 million in cash and a market capitalisation of just $36 million, Globe is trading under cash backing, providing opportunities for investors to acquire an interest in the company's projects in Africa at next to no cost.

Africa Portfolio

Globe currently has the Mount Muambe REE-Fluorite Project in Mozambique, and four projects in Malawi: the Kanyika Niobium Project, the Machinga REE Project, the Salambidwe REE Project and the Livingstonia Uranium Project.

Globe's main focus is the multi-commodity Kanyika Niobium Project in Malawi, which will commence production of ferro-niobium in 2014, a key additive in sophisticated steels.

Globe also has a number of other projects at an earlier stage of development in Africa.

Last week the company announced recent drilling at the Mount Muambe Project in Mozambique has extended near surface fluorite mineralisation to the north of the main fluorite/REE zone by over 300 metres strike length.

Highlights included 13 metres at 13.9% fluorite from surface and 10 metres at 12.9% fluorite from 12 metres.