Central Australian Rare Earths Pty Ltd ("CARE")
In September 2012, Rarus Limited (our partner in CARE) conducted a moving loop electromagnetic (‘MLTEM’ or ‘EM’) survey at the Hanns Camp Prospect. It identified three conductivity anomalies co-incident with anomalous Ni-Cu regolith geochemistry in komatiitic channel-facies geological settings considered extremely prospective for massive nickel-sulphide mineralisation.
In order of priority these newly identified exploration targets are called ‘Forrest’, ‘Stirling’ and ‘Canning’. The Forrest target is considered particularly prospective due to its location at the base of the Hanns Camp Ultramafic Belt’s main lava channel pathway. In addition to the massive nickel-sulphide targets identified at Hanns Camp, a weak conductivity anomaly extending about 900m north from and stratigraphically above the Forrest target points to potential for disseminated nickel-sulphide mineralisation in the centre of the main lava channel. Collectively the Forrest, Stirling and Canning targets make Hanns Camp one of the most compelling greenfields nickel-sulphide exploration opportunities in the Yilgarn Craton and as such they warrant immediate drill testing by Rarus.
In 2016, SML entered arrangements to acquire up 50% of the ownership of CARE from Rarus Limited ("Rarus"), which holds or has an agreement to acquire tenements with nickel sulphide and rare earth element exploration potential in Western Australia and the Northern Territory of Australia.
The bulk of the Company's investment is to be used to fund a nickel sulphide exploration programme at the highly prospective Hanns Camp Prospect located within CARE's Laverton Project expected to commence in the second quarter of 2016.
The Directors of SML considered the investment in CARE attractive given:
- Proven Exploration Province - The Laverton Project is located in the emerging "Eastern Yilgarn Crafton Sulphide Province" in Western Australia that is notable for hosting a number of nickel sulphide projects.
- Proximity to Infrastructure - The project is closely located to Laverton, its airport, electrical infrastructure, sealed highway access to Glencore's Murrin Murrin nickel processing plant and the Malcolm railway siding.
- Advanced Planning Stage - Over the past three years, Rarus has spent considerable time and money in securing the tenements and preparing a drilling programme.
- Nickel Price Outlook - Along with a number of market pundits, the Directors of the Company consider that the falling Nickel stockpiles and likely demand for Nickel bodes well for future prices.
In addition, CARE holds 100% of a number of tenements in the Northern Territory and Western Australia that are prospective for nickel sulhides, rare earths and gold. Some of these tenements are adjacent to Lynas Corporation's Mount Weld rare earth element's mine.
The flowing maps and diagrams detail the location of the Laverton project, the geology surrounding it and proposed drill plans
A copy of the drilling proposal prepared in 2013 can be viewed by following this link
In 2015, prior to SML's involvement, Rarus provided an investor update on the project can be viewed by following this link