Strategic Minerals agrees to provide funding to Central Australia Rare Earths

Multi-minerals production, exploration and development company Strategic Minerals announced on Monday that it has agreed, in conjunction with its joint venture partner Rarus, to provide funding to Central Australia Rare Earths.

The AIM-traded firm said the AUD 0.15m funding is for both drilling of CARE's Mount Weld tenement - considered prospective for Gold and Rare Earths - and for the continuation of exploration works at CARE's Hanns Camp Nickel Sulphide Project in Western Australia.

It said CARE's Mount Weld tenement abuts Lynas Corporation's Mount Weld Rare Earth mine and is in an established gold region of Western Australia.

Based on a historical review of past exploration, the company has identified three discrete areas of gold anomalism at the Mount Weld tenement that warrants further investigation.

With that in mind, Strategic said it has agreed to provide funding for a drill programme to examine the resource potential of the tenement.

In line with its successful drill programme at the Hanns Camp project earlier this year, CARE has established a programme of electromagnetic surveys and a review of the material derived from the first drill programme to examine its potential for platinum group elements.

The initial results from the programme exhibit evidence of a potential nickel sulphide deposit and are not dissimilar to initial findings associated with the Rosie Nickel Sulphide Mine located to the North West of Hanns Camp, the board added.

“The agreement on an appropriate approach for the continued exploration of the CARE tenements opens up an exciting new phase in the rejuvenation of the company, especially in light of the recent escalation in nickel prices, which have risen by approximately 40% since early June,” said Strategic Minerals managing director John Peters.

“This establishes a blueprint for the further development of the CARE tenements on a fair and equitable basis while ensuring that progress does occur.”

Peters said the board anticipates the work on the review of previous drilling material to begin shortly and expect the Mount Weld drilling and Hanns Camp above ground electromagnetic survey to be completed in the first half of 2017.

“The funding of these arrangements is to be undertaken internally and has been factored into our overall cash flow budgeting, taking into account our recent equity raising, cash flows from Cobre, the completion of the option on the Redmoor Tin/Tungsten project and the expenditure required here.

“We look forward to updating the market on the progress of these works.”