LNR release assays from project next to Dreadnaught & Hastings
Our rare earths Investment Lanthanein Resources (ASX: LNR) just put out assay results from its 10,407m drill program in the Gascoyne region in WA.
LNR’s project sits next to $132M Hastings Technology Metals and $137M Dreadnought Resources.
LNR is currently capped at $14.6M.
Most of LNR’s hits were between one to five metres thickness with grades as high as 0.76% Rare earths oxides and 1.22% niobium.
The best hit was a 1m hit grading 0.76% rare earths and 1.22% niobium from 33m.
This is where the results fit into our expectations:
Although the results were below our “base case” expectations, we had a few positive takeaways from the drilling:
1) LNR managed to extend the strike of its known mineralisation to 1,200m.
This means that LNR has increased the size of its project which could lead to a bigger resource when it comes time to put together a maiden resource estimate.
- Maiden Resource Estimate commenced.
LNR’s maiden resource will be from the Lyons 12 and 13 targets.
A maiden resource estimate will allow investors to compare LNR’s project with other rare earth deposits.
3. LNR still has heaps of undrilled ironstone targets on a small part of its project
The drilling LNR has done to date only covers a small part of LNR’s overall ground position in the area and so the company still has heaps of drilling to do at its project.
Although these results were not exactly what we were looking for, they do provide LNR with some valuable information with which to progress its next drill program.
What’s next for LNR?
Assay results from deeper carbonatite targets 🔄
LNR noted that assays from the deeper diamond drillholes into its carbonatite targets are still pending.
The deeper carbonatite targets are the same type of rocks that host $5.9BN Lynas Rare Earths giant Mt Weld deposit in WA - one of the highest grade rare earths deposits in the world.
We have set up our expectations for those assays as follows:
- Bull case = >0.5% TREO (Total rare earths oxide)
- Base case = 0.2% - 0.5% TREO
- Bear case = <0.2% TREO
