http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Thu, 23 Nov 2017 14:41:43 +1100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Anova Metals commences development of Second Fortune gold mine ]]> http://www.proactiveinvestors.com.au/companies/news/187196/anova-metals-commences-development-of-second-fortune-gold-mine-187196.html Anova Metals (ASX:AWV) welcomes the arrival of mining contractor GBF Mining to its Second Fortune Gold Mine located within the 100% owned Linden Gold Project in Western Australia.

The mining contractor arrived on site over the weekend ahead of commencing portal development at the proposed underground gold mine.

Mine dewatering, camp expansion and other site preparations are progressing as planned.

The initial stage will see the construction of the portal, the development of the decline down to the first ore drive and the development and stoping of this drive.

This will produce a marketable parcel of ore for toll treatment and allow for a review of the geology, mining method and ore sorting prior to proceeding with further development.

Infill drilling adds confidence to resource

A total of 18 reverse circulation holes were drilled for 1,546.5 metres targeting the initial two shallowest mining levels.

Results included grades of up to 0.5 metres at 43.4 g/t gold and were in line with expectations and assist in refining the Main Vein grades and thicknesses planned for mining early in 2018.

Underwater survey

To ensure surveys of the underground voids were consistent with present plans, an underwater drone survey was conducted to inspect shafts and mine voids.

Video imagery and depth logs from the drone confirmed there were no unexpected mining voids and plans were consistent with those in use.

Dewatering of the historic workings is steadily progressing and will be completed in line with planned underground development.

Second Fortune

The fully permitted Second Fortune Gold Mine is a proposed underground operation within the Linden Gold project at the southern end of the highly gold endowed Laverton Tectonic Zone.

The Laverton Tectonic Zone hosts a number of world-class gold deposits including Wallaby (7.1 million ounces gold), Granny Smith (1.8 million ounces gold) and Sunrise Dam (7.0 million ounces gold).

Second Fortune has an Ore Reserve of 339,000 tonnes grading 6.0 g/t gold for 65,000 ounces, which remains open below 300 vertical metres.

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Tue, 14 Nov 2017 17:25:00 +1100 http://www.proactiveinvestors.com.au/companies/news/187196/anova-metals-commences-development-of-second-fortune-gold-mine-187196.html
<![CDATA[News - Anova Metals Has major news pending ]]> http://www.proactiveinvestors.com.au/companies/news/178812/anova-metals-has-major-news-pending-178812.html Anova Metals Limited (ASX:AWV) has been granted a trading halt by the ASX, pending details regarding the company entering into a material Scheme of Arrangement.

The halt will remain in place until the opening of trade on Thursday 8th June 2017, or earlier if an announcement is made to the market.

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Tue, 06 Jun 2017 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/178812/anova-metals-has-major-news-pending-178812.html
<![CDATA[News - Anova Metals drills high-grade gold in Nevada ]]> http://www.proactiveinvestors.com.au/companies/news/170082/anova-metals-drills-high-grade-gold-in-nevada-170082.html The initial program focused on resource extensions at the South Sammy and Beadles Creek deposit, together with geotechnical drilling at the North Sammy deposit.

Best intersections include:
- 10.7 metres at 30.9 g/t gold, including 3 metres at 60.4 g/t gold; and
- 9.1 metres at 7.5 g/t gold, including 4.6 metres at 10.9 g/t gold.

The exceptional intersection of 30.9 g/t gold is outside the limits of the currently modelled resource envelope and extends a high‐grade zone intersected in the past.

The Beadles Creek zone remains open both along dip and strike and is a compelling target that will be further drill tested in 2017.

These results will be incorporated into updated underground and open pit mine designs before the planned start of mining in 2017.

Anova’s drill program was fully funded by the recently completed share placement and share purchase plan which collectively raised over $9 million.

The company’s share price has increased by about 165% since the beginning of 2016, last trading at $0.13.

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Wed, 07 Dec 2016 12:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170082/anova-metals-drills-high-grade-gold-in-nevada-170082.html
<![CDATA[News - Anova Metals Ltd to lift cash position ]]> http://www.proactiveinvestors.com.au/companies/news/165339/anova-metals-ltd-to-lift-cash-position-70317.html Anova Metals Ltd's (ASX:AWV) shares last traded at $0.145, which is four-times the value from a year ago.

The company is now heading to market with a capital raising, and the ASX has granted a trading halt to prepare.

The halt will remain in place until the opening of trade on Thursday 11th August 2016, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 09 Aug 2016 07:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165339/anova-metals-ltd-to-lift-cash-position-70317.html
<![CDATA[News - Anova Metals decision to mine Big Springs gold a step closer ]]> http://www.proactiveinvestors.com.au/companies/news/131964/anova-metals-decision-to-mine-big-springs-gold-a-step-closer-67179.html Anova Metals (ASX:AWV) now has the cash in the bank to develop its Big Springs gold project in Nevada, USA, and is now turning its attention to the permitting required for mining the 1.03 million ounce deposit.

The company raised US$1.35 million at $0.045 each from investors for the operation which plans to start open pit mining later this year.

The Nevada Division of Environmental Protection has issued a draft Water Pollution Control Permit for the project.

Receipt of this permit marks a major technical and regulatory milestone for the project and Anova is progressing towards completion of permitting for the project during the second quarter of 2016.

With the grant of draft Water Pollution Control Permit and the Nevada Reclamation Permit expected in April, the company is well placed to make a decision to mine in the second quarter of 2016.

The project contains Carlin-style gold deposits 80 kilometres north of Elko in Nevada’s north-east.

The Big Springs gold deposits comprise five separate zones and the project was mined by Freeport McMoRan (NYSE:FCX) between 1987 and 1993, producing 386,000 ounces of gold from six open pits.

Mining ended in 1993 due to low gold prices but from 2002, new owners of the project, Gateway Gold Corporation, completed extensive exploration work on Big Springs, including 49,100 metres of reverse circulation and diamond drilling.

This work was combined with pre-existing drill data to produce a combined database with more than 2,400 drill holes.

 

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Wed, 24 Feb 2016 15:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131964/anova-metals-decision-to-mine-big-springs-gold-a-step-closer-67179.html
<![CDATA[News - Anova Metals raises funds for Nevada gold project ]]> http://www.proactiveinvestors.com.au/companies/news/131963/anova-metals-raises-funds-for-nevada-gold-project-67148.html Anova Metals (ASX:AWV) has raised $1,350,000 at $0.045 each from investors for development of its Big Springs gold project in Nevada, USA.

Funds raised will be put towards permitting and mine design finalisation of Big Springs.

The company is looking to have permit approvals in Q1 2016 for the 1.03 million gold ounce project and is aiming for open pit mining in the second quarter.

 

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 23 Feb 2016 12:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131963/anova-metals-raises-funds-for-nevada-gold-project-67148.html
<![CDATA[News - Anova Metals raising funds for gold project in Nevada ]]> http://www.proactiveinvestors.com.au/companies/news/131962/anova-metals-raising-funds-for-gold-project-in-nevada-64845.html Anova Metals (ASX:AWV) has received firm commitments for a capital raising of $504,000 priced at $0.045 from sophisticated and professional investors.

Proceeds will be used for permitting, mine design finalisation and general working capital requirements for the company’s wholly-owned Big Springs gold project in Nevada.

Big Springs is a Carlin-style gold deposit located in an established gold mining region.

It was mined by Freeport McMoRan (NYSE:FCX) between 1987 and 1993 producing 386,000 ounces of gold from several open pits. Mining at the Project ceased in 1993 due to low gold prices.

Anova has updated JORC Resources of 1.03 million ounces of contained gold at Big Springs.

As at 30th June 2015, it had cash reserves of $1.47 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 30 Sep 2015 13:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131962/anova-metals-raising-funds-for-gold-project-in-nevada-64845.html
<![CDATA[News - Anova Metals raises $2M to progress Nevada gold project ]]> http://www.proactiveinvestors.com.au/companies/news/131961/anova-metals-raises-2m-to-progress-nevada-gold-project-60661.html Anova Metals (ASX:AWV) has received firm commitments from sophisticated and professional investors to raise $2 million through the issue of 50 million shares priced at $0.04 each.

Proceeds will be used primarily for permitting, mine design finalisation and site works in preparation for commencement of mining operations at its Big Springs Gold Project in Nevada.
   
The capital raising will be undertaken in two tranches with the first tranche of 37,500,000 shares to raise $1,500,000 to be issued upon completion of the documentation and the second tranche of 12,500,000 shares to raise $500,000, will be issued subject to shareholder approval.

Big Springs has a contained Resource of 1.03 million ounces of gold.

Recent drilling has confirmed the high grade nature of mineralisation.
   
Best intersections included:

- 20.5 metres at 7.6 grams per tonne gold from 7 metres;
- 7.6 metres at 9.5 g/t gold from 53.3 metres;
- 6.1 metres at 11.8 g/t gold from 9.1 metres; and
- 10.7 metres at 8.7 g/t gold from 45.7 metres.

Big Springs is close to good supporting infrastructure with the Carlin region of Nevada being the primary gold production centre for the U.S.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 12 Feb 2015 14:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131961/anova-metals-raises-2m-to-progress-nevada-gold-project-60661.html
<![CDATA[News - Anova Metals heads to market ]]> http://www.proactiveinvestors.com.au/companies/news/131960/anova-metals-heads-to-market-60631.html Anova Metals (ASX:AWV) has been granted an ASX trading halt in relation to a capital raising.

The halt will last until the earlier of the announcement being made or the commencement of trade on Friday, 13th February 2015.

Drilling at its Big Springs project in Nevada had confirmed the high grade nature of mineralisation.

Best intersections included:

- 20.5 metres at 7.6 grams per tonne gold from 7 metres;
- 7.6 metres at 9.5 g/t gold from 53.3 metres;
- 6.1 metres at 11.8 g/t gold from 9.1 metres; and
- 10.7 metres at 8.7 g/t gold from 45.7 metres.

The mine permitting program is proceeding on schedule while metallurgical test work is continuing.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 11 Feb 2015 13:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131960/anova-metals-heads-to-market-60631.html
<![CDATA[News - Anova Metals to start drilling at Nevada gold project ]]> http://www.proactiveinvestors.com.au/companies/news/131959/anova-metals-to-start-drilling-at-nevada-gold-project-58013.html Anova Metals (ASX:AWV) will soon start drilling at its Big Springs gold project in Nevada after receiving approval from the United States Forestry Service for its Exploration Plan of Operations.

The company plans to carry out infill reverse circulation drilling of the proposed 601 open pit and underground zones plus minor diamond core drilling for geotechnical and metallurgical sampling purposes.

In addition, further geotechnical diamond core drilling is planned for the potential 701 underground zone plus hydrogeology drilling and pump testing of the proposed North Sammy underground zones.

The program also includes exploration drilling into resource extension targets for the 601 underground zone and Beadles Creek.

Clearing of drilling pads has commenced and the program is planned to start in October.

Big Springs is located about 90 kilometres north of the city of Elko, which is on a major transportation route, Interstate Highway 80 (I80), between Salt Lake City in Utah and Reno in Nevada.

At present, grid electrical power is available within 2 kilometres of the project site. 

The project area was mined between 1987 and 1993 producing 386,000 ounces of gold from six open pits.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 07 Oct 2014 18:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131959/anova-metals-to-start-drilling-at-nevada-gold-project-58013.html
<![CDATA[News - Anova Metals seals gold toll treatment agreeement ]]> http://www.proactiveinvestors.com.au/companies/news/131958/anova-metals-seals-gold-toll-treatment-agreeement-57096.html Anova Metals (ASX:AWV) is joining the ranks of gold producers after reaching a toll treatment agreement with Veris Gold (OTCQB:YNGFF) to process ore from its Big Springs Gold Project in Nevada.

Shares in the company should trade higher today on the news.

The wholly-owned Big Springs project has a total Resource of 16 million tonnes at 2 grams per tonne gold for 1.03 million ounces of contained gold.

This includes a high grade core of 415,000 ounces at 4.2g/t gold.

Under the agreement, ore from Big Springs will be processed at the Jerritt Canyon Mill and Process facility about 42 kilometres away in batches of about 25,000 short tons.

This removes any requirement for Anova to have its own plant and reduces permitting requirements for its mining operation.   

Anova will deliver about 1,000 short tons of ore per day in accordance with an agreed schedule.

It activities at Big Springs are continuing to focus on permitting, completion of the final study work as well as selection of mining contractors in preparation for the commencement of mining.

The company also plans to carry out detailed analysis of the entire exploration data package.

Exploration targets identified will be prioritised and work programs planned for the 2015 field season.

Anova had raised $835,000 during the June Quarter by the issue of 20,875,000 shares at $0.04 each in a placement. It had $1.48 million in cash as of 30 June 2014.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 22 Aug 2014 11:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131958/anova-metals-seals-gold-toll-treatment-agreeement-57096.html
<![CDATA[News - Anova Metals to reveal commercial agreement ]]> http://www.proactiveinvestors.com.au/companies/news/131957/anova-metals-to-reveal-commercial-agreement-57080.html Anova Metals (ASX:AWV) is preparing to divulge details regarding the execution of a commercial agreement, with the ASX granted the company a trading halt to prepare.

The recent focus for the company has been the Big Springs Gold Project, Nevada, U.S., where activities continued to focus on the proposed first phase of proposed mining operations (601 open Pit and 701 underground).

Mine permitting, mine planning, geotechnical and hydrogeological study work was undertaken throughout the June 2014 quarter.

The Big Springs Project has a Measured, Indicated and Inferred JORC 2012 resource of 16.0 million tonnes at 2.0g/t gold for 1.03 million ounces.

Anova had $1.5 million in cash at the end of June 2014.

The halt will remain in place until the opening of trade on Monday 25th August 2014, or earlier if an announcement is released to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 21 Aug 2014 16:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131957/anova-metals-to-reveal-commercial-agreement-57080.html
<![CDATA[News - Anova Metals has 1 million gold ounces at Big Springs in Nevada ]]> http://www.proactiveinvestors.com.au/companies/news/131956/anova-metals-has-1-million-gold-ounces-at-big-springs-in-nevada-55869.html Anova Metals (ASX:AWV) should trade firmer after advising that an updated JORC Resource estimate for its Big Springs gold deposit in Nevada has been completed with a contained 1.03 million ounces of gold.

The Measured, Indicated and Inferred Mineral Resource estimate and classification has been completed in accordance with the 2012 JORC Code and comprises a total resource of 16 million tonnes at 2 g/t gold.

Importantly, Increasing the cut-off grade to 2.5 g/t gold results in a high grade core of 3.1 million tonnes at 4.2 g/t gold for 415,000 ounces.

The mineral Resource estimate is the basis for the underground mining studies and open pit mine planning current being undertaken by Anova and its consultants.

Work in progress to further define JORC reserves, open pit mining plans are well advanced and underground mine studies are in progress.

This JORC Resource estimation triggers the conversion of 13 million Performance Shares held by the project vendors into Ordinary Shares.

These performance Shares were convertible upon the delineation of a JORC compliant Inferred Resource of at least 1 million ounces of gold.

Big Springs is located in a Tier 1 gold province, with good supporting infrastructure - The Carlin region of Nevada is the primary gold production centre for the U.S. and is ranked third worldwide.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 26 Jun 2014 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131956/anova-metals-has-1-million-gold-ounces-at-big-springs-in-nevada-55869.html
<![CDATA[News - Anova Metals heads to market; focus on Carlin-type gold deposits in Nevada ]]> http://www.proactiveinvestors.com.au/companies/news/131955/anova-metals-heads-to-market-focus-on-carlin-type-gold-deposits-in-nevada-53737.html Anova Metals' (ASX: AWV) shares are in pre-open this morning following the ASX granting the company a trading halt.

Anova is heading to market with a capital raising.

The company is focused on the Big Springs Gold Project in Nevada, U.S., which hosts Carlin-type gold deposits.

Importantly the project is located in a Tier 1 gold province, with good supporting infrastructure.

There is also the potnetial for low capital expenditure through processing via toll treatment.

The Carlin region of Nevada is the primary gold production centre for the U.S., and is ranked third worldwide.

The halt will remain in place until the opening of trade on Thursday 20th March 2014, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 18 Mar 2014 11:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131955/anova-metals-heads-to-market-focus-on-carlin-type-gold-deposits-in-nevada-53737.html
<![CDATA[News - Kimberley Rare Earths to announce acquisition ]]> http://www.proactiveinvestors.com.au/companies/news/131954/kimberley-rare-earths-to-announce-acquisition-36452.html Kimberley Rare Earths (ASX: KRE) is in pre-open today pending details of a material acquisition.

Kimberley highlighted in its September quarterly that M&A strategy is a key focus, with the company having a cash position of $11.1 million at the time.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 29th November.

 

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Tue, 27 Nov 2012 15:10:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131954/kimberley-rare-earths-to-announce-acquisition-36452.html
<![CDATA[News - Kimberley Rare Earths on the hunt for acquisitions ]]> http://www.proactiveinvestors.com.au/companies/news/131953/kimberley-rare-earths-on-the-hunt-for-acquisitions-33902.html Kimberley Rare Earths (ASX: KRE) has identified metals, base metals and strategic minor metals as the target sectors for its merger and acquisition efforts following completion of its strategic review process.

Its refreshed board has also committed to continuing exploration of the Malilongue heavy rare earths project in Mozambique and decided to suspend further expenditure on the Cummins Range light rare earths project in the East Kimberley region of Western Australia.

While the company has yet to identify a project or corporate opportunity that meets its investment criteria, it noted that the number of quality opportunities is increasing as continuing negative market conditions prevail.

Its board added the company, which has cash in hand of about A$11 million, is well positioned to realise a suitable transaction.

Kimberley is also carrying out a trenching program over key prospect areas at Malilongue as part of its efforts to unlock the heavy rare earths project’s potential through a cost-effective but high impact exploration program.

The results from this work will be used to determine the most appropriate next phase of exploration which is expected to include the first phase of drilling, pending identification of appropriate drill targets.

Malilongue is highly prospective for heavy rare earths, lithium, tin and tantalum.

Cummins Range

Kimberley has also decided to suspend further expenditure on the Cummins Range project after its Board concluded that near-term commercial development was not practicable while long-term development was dependent on factors beyond its control.

While the project had showed significant exploration upside potential when the company had listed, exponential rare earth price between July 2009 and July 2011 triggered global exploration activity that defined a large number of non-Chinese rare deposits and defined Resources of around 400 years of current annual rare earth global demand.

This in turn led to light rare earths forecasts to move from under to oversupply, resulting in a 70% and continuing decline in prices.

While Kimberly had in August found Cummins Range to be technically viable, its concept study also defined the project’s modest scale, limited extension potential, and the importance of sourcing additional local feedstock opportunities to enhance commercial viability. These opportunities do not currently exist.

The Board noted that Kimberley shares have been trading at below cash backing with zero value attributable to Cummins Range.

Under its joint venture with Navigator Resources (ASX: NAV), Kimberley had been required to spend at least A$5 million on exploration by 13 May 2013 to earn its 25% stake in the project. Meeting this commitment would require Kimberley to spend a further A$1.8 million.

Kimberley is now in discussions with Navigator Resources (ASX: NAV) to determine whether a more beneficial option may be achievable in light of the changed market and project circumstances rather than paying the balance of the expenditure or returning the 25% interest to Navigator.

Board changes

The company had earlier this month appointed Jon Parker as its chairman replacing Ian Macpherson, who remains a non-executive director.

It also appointed Malcolm James as a non-executive director to augment Board skills and capabilities. The changes also rebalance the roles of individual directors to reflect their various corporate accountabilities as Kimberley actively seeks growth opportunities.

James, who has 30 years experience in merchant banking, engineering, manufacturing, mining, energy, financing, philanthropic and social ventures, will also assume the role of Chairman of the Audit Committee.

Over the past 25 years, James has had active roles in identifying, exploring, financing and developing a number of significant natural resource and energy projects in Australia, the former Soviet Union, the Middle East, Africa, Asia, South America and the U.S.

He has held executive and non‐executive board positions on several Australian and London listed companies, business associations, sporting and not‐for‐profit organisations and has been directly involved in over A$2 billion of equity and debt financing.

He was also a founding director of Resource & Capital Management ‐ a boutique resource and capital management firm that was responsible for the identification, financing and listing of several projects/companies on the Australian and London Securities Exchanges.

James is currently an executive director of Peninsula Energy (ASX: PEN) and non-executive chairman of Alecto Minerals (LON: ALO).

 

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Thu, 27 Sep 2012 15:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131953/kimberley-rare-earths-on-the-hunt-for-acquisitions-33902.html
<![CDATA[News - Kimberley Rare Earths’ Concept Study supports technical viability of Cummins Range ]]> http://www.proactiveinvestors.com.au/companies/news/131952/kimberley-rare-earths-concept-study-supports-technical-viability-of-cummins-range--32578.html Kimberley Rare Earths Limited (ASX: KRE) has received the findings of a Concept Study for its Cummins Range rare earths project in the East Kimberley region of Western Australia which confirms the project’s technical viability.

The base case project concept is a straightforward open pit mining and concentration at the site, then downstream processing into five separate rare earth products at a coastal port location. The principal market is Asia.

A 16 year mine life results from a production rate of 3,000 tonnes per annum total rare earth oxides (TREO), which accommodates both the scale of the project and market factors.

Cummins Range has an Inferred Resource of 4.9 million tonnes at 1.74% TREO. The deposit is flat‐lying and expresses at surface, meaning total mining recovery of the Resource is practicable.

The economics can be further enhanced through capacity scale‐up of the downstream processing facility to treat potential third party or additional Kimberley Rare Earth feed concentrates.


Pit optimisation

Pit optimisation and mine scheduling were undertaken by Intermine Engineering Consultants.

The mining concept involves conventional shovel and truck open cut mining with a high grade starter pit and a final pit.

The high grade starter pit supports TREO delivery to the concentrator plant of 5,500 tonnes per annum for the first four years, with subsequent production averaging 4,100 tonnes per annum for the remaining mine life.


Well understood mineralogy

Specialist mineralogical assessment indicates that the Cummins Range Resource has a relatively simple mineralogy with a high proportion of coarse, easy to recover, primary mineralisation present.

Test work has defined a flow sheet that delivers a mineral concentrate with an upgrade ratio of 4.8 and 50% TREO.

A monazite‐rich concentrate can be produced that is suitable for further processing using conventional, well‐understood rare earth extraction, purification and separation methods.


Scaled-up downstream processing

The study contemplates the development of Cummins Range as a standalone project. However, downstream rare earth processing facilities are part of a larger supply chain network and benefit from scale‐up due to variable product market dynamics and commitment to large scale chemical supply infrastructure.

These factors favour the development of a facility designed and scaled to treat more than one mineral concentrate feed stock.

For Cummins Range, this may be possible in several potential scenarios:

- Kimberley Rare Earths builds and operates a downstream facility for Cummins Range that can be used for toll treating rare earth concentrates supplied by others;

- Kimberley Rare Earths develops several rare earth deposits that can utilise a single downstream facility; or

- Cummins Range concentrate is toll treated through a third party facility.


Next steps

The next steps for Cummins Range are to identify and investigate strategies and opportunities for the optimisation of downstream processing before proceeding with further engineering or exploration.


Analysis

Although it may perhaps be missed by some investors, the positive assessment from the Concept Study is a significant step forward in the evolution of Cummins Range.

As the Cummins Range rare earths deposit has significant intrinsic advantages of favourable mineralogy, ease of mining, and relatively low technical and country risk.

A low‐risk metallurgical flow sheet has been defined based on successful concentration test work and conventional downstream unit processes.

This is of particular importance given the geological and mineralogical diversity of rare earth deposits and the complexity of extracting and separating multiple metal-based products.
 
On an EV/Resource tonne valuation, Kimberley provides a rate opportunity for investors to acquire a cash backed rare earths stock. It is currently trading below cash backing with a market cap. of A$8 million and cash on hand at the end of the June quarter of nearly $12 million. That equates to cash per share of $0.09 compared to the company’s current share price of $0.07.

Clearly, with any market pick up, this situation will be unlikely to last, providing an opportunity for investors at current prices.

We believe that the company may also be on the look out for M&A opportunities that will either add to current rare earth resource base or be complementary to current projects - either would be a filip for the market valuation of Kimberley.


Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Tue, 21 Aug 2012 10:54:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131952/kimberley-rare-earths-concept-study-supports-technical-viability-of-cummins-range--32578.html
<![CDATA[News - Kimberley Rare Earths discovers HREO prospect at Malilongue in Mozambique ]]> http://www.proactiveinvestors.com.au/companies/news/131951/kimberley-rare-earths-discovers-hreo-prospect-at-malilongue-in-mozambique-31392.html Kimberley Rare Earths (ASX: KRE) has discovered a new prospect which has the potential for multiple elements at the Malilongue heavy rare earths oxide project located in Mozambique.

Kimberley only started exploration a few months ago at Malilongue, with the Chigaio prospect yielding significant strategic metal anomalism - and is located just nine kilometres from the Vundu prospect where more rare earth anomalism was recently defined.

Worth noting for investors, Malilongue has already drawn similarities to the Quest Rare Minerals' (CVE: QRM) Strange Lake deposit in Canada, (43‐101 Resource: 230 million tonnes at 0.91% TREO. A "Heavies" Project: 41% HREO/TREO).

Over 1800 soil samples have been collected from around the margins of the Malilongue granite using a set of grid system designs, with results from the Southern Pegmatite Field grid defining a major geochemical zone containing lithium, tantalum and tin anomalism over the Chigaio pegmatite.

Further soil geochemical peak values include tantalum in soil at over 270ppm and lithium in soil at over 450ppm, on dimensions exceeding 2 kilometres in strike and 400 metres in width.

The tin in soil values peak at 992ppm from within an anomaly defined by a threshold value of 200ppm tin, with the anomaly slightly offset from the lithium-tantalum zone and may be indicative of a zoned pegmatite body which is consistent with similar deposits currently being mined around the world.

Tim Dobson, managing director, commented: “The KRE exploration team has done an excellent job in identifying two significant prospects in quick succession. These early achievements confirm our view that Malilongue is highly prospective for a range of deposit types.”

Importantly - geological mapping at Chigaio has identified that the surface lithium tantalum tin anomalism is directly related to a large pegmatite body emplaced along a major NE trending structure that defines the SE contact of the Malilongue granite.

A major plus us early indications suggest that the Chigaio pegmatite is of a particular rare element class known as LCT, which is one of the most important sources of tantalum, lithium, tin, other rare metals and gemstones.

Geoff Collis, GM of Exploration, told Proactive Investors today that prospects keep appearing at Malilongue. "We continue to discover good values of rare earths and heavy rare earths, along with lithium and tantalum. Heavy rare earths remain our primary target."


News flow to increase in the short term

Kimberley will look to release more geochemical soil results in August and September, with a trenching program to commence immediately in the Chigaio prospect area, which is a low cost and effective method of follow up testing.

Once these additional results have been received and targets defined, Kimberley can then look to drill test using a reverse circulation rig which has been sourced locally.

 

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Tue, 17 Jul 2012 13:03:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131951/kimberley-rare-earths-discovers-hreo-prospect-at-malilongue-in-mozambique-31392.html
<![CDATA[News - Kimberley Rare Earths proving value of Malilongue with validation of rare earth discoveries ]]> http://www.proactiveinvestors.com.au/companies/news/131950/kimberley-rare-earths-proving-value-of-malilongue-with-validation-of-rare-earth-discoveries--30709.html Kimberley Rare Earths (ASX: KRE) is successfully continuing to unearth more rare earth anomalism at its Malilongue Project in Mozambique, with soil sampling returning peak values of greater than 1,100 parts per million total rare earth oxides (TREO) from the Vundu Prospect.

Strong comparisons have been drawn between the Vundu prospect and Quest Rare Minerals’ (TSX-V: QRM) Strange Lake pegmatite-hosted deposit in northern Quebec, which hosts an Inferred Resource of 230 million tonnes at 0.91% TREO.

Further upside of the soil sampling program is that the soil anomalism discovered exceeds five times background over the Vundu target.

The initial results are from just 30% of assays, which were prioritised for rapid assessment of the target, with the remaining 70% expected by the end of July, and likely to be highly anticipated given the results so far.

On average the ratio of heavy rare earth oxides (HREO) to TREO within the soil is 27%, which is consistent with that expected from pegmatite-hosted rare earth elements deposits such as Strange Lake.

Increasing the potential of the Malilongue Project is the definition of a second target 4 kilometres to the east of Vundu.


Strong neodymium anomalism

Of particular economic importance is the neodymium anomalism observed at the Vundu Prospect. Values regularly exceed 100 parts per million and peak at 183 parts per million.

Neodymium is a non-substantial, critical rare earth element used in the manufacture of high powered permanent magnets, and is one of five consistently identified rare earths in terms of strategic importance and supply risk.


Soil geochemical coverage

A total of 1,847 soil samples have been collected from around the margins of the Malilongue Granite, covering around 80% of the granite margin.

All samples are being analysed for the full suite of rare earth elements, precious and base metals, as well as other selected metals.


Next exploration steps

Kimberley Rare Earths is now planning a campaign of trenching to follow up on the soil anomalism.

Importantly, this will be a low cost, effective follow up test given the shallow regolith over the extended Vundu Prospect area.

The company expects to begin drilling in August once targets have been identified following the receipt of the remaining soil geochemical assays.


Infrastructure advantage

Tete is the closest regional centre to Malilongue and is experiencing boom-type conditions given the influx of capital associated with the local coal fields currently being developed by both Vale and Rio Tinto.

The Cahora Bassa hydro-electric power facility is located within the Tete District and the government has successfully supplied cheap grid power to many of the villages in the area.

An extension line to Malilongue has been promised should a substantial project develop there.


Analysis

The market is yet to realise the value of Kimberley Rare Earth’s highly prospective Malilongue Project, which is already drawing comparisons to Quest Rare Minerals’ Strange Lake pegmatite-hosted deposit in northern Quebec, which hosts an Inferred Resource of 230 million tonnes at 0.91% TREO.

With $13 million in cash reserves at the end of the March quarter and a market cap. of just $7 million, the market has assigned no value to the company’s highly prospective Malilongue and Cummins Range, which hosts a JORC Resource of 4.9 million tonnes at 1.74% total rare earth oxides.

At Cummins Range, Kimberley Rare Earths has defined a simple process flow sheet to produce saleable rare earth products, a milestone in the development of the Cummins Range project.

This is of particular importance given the geological and mineralogical diversity of rare earth deposits and the complexity of extracting and separating multiple metal-based products.


Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Fri, 29 Jun 2012 10:29:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131950/kimberley-rare-earths-proving-value-of-malilongue-with-validation-of-rare-earth-discoveries--30709.html
<![CDATA[News - Kimberley Rare Earths deputy chairman appointment highlights growth focus ]]> http://www.proactiveinvestors.com.au/companies/news/131949/kimberley-rare-earths-deputy-chairman-appointment-highlights-growth-focus-30034.html Kimberley Rare Earths (ASX: KRE) is increasing its focus on value adding initiatives at the corporate and asset level, and has appointed Jon Parker as deputy chairman.

The company is assessing a number of opportunities to consolidate rare earth and non-rare earth projects with near-term production potential.

These projects would provide cash flow to support the ongoing development of Kimberley’s rare earth assets.

Parker, a non-executive director of Kimberley, has extensive experience in mergers and acquisitions, along with 30 years of broad strategic and management experience in the resource and energy sectors.

He joins Kimberley from Norton Gold Fields (ASX: NGF), where he was managing director, with a focus on acquiring, developing and operating gold mines.

Parker’s other experience includes roles in iron ore, energy, kaolin and aluminium with Rio Tinto (ASX: RIO), managing director of Felix Resources in coal, and managing director of Aulron Energy in coal, iron ore and direct iron smelting.

Rare earth projects

Kimberley is advancing the Cummins Range Rare Earth Project in Western Australia and the Malilongue Rare Earth Project in Mozambique.

Last month, the company identified a new prospect at Malilongue, which hosts a 2 kilometre long tantalum surface anomaly.

High values of tantalum in this area are consistent with 2007 test pit results which returned assays exceeding 150 parts per million tantalum.

These results confirm Kimberley’s view that the Malilongue project is extremely prospective for multiple commodities.

The company plans to follow up on the discovery with drill testing during the 2012 field season.

Meanwhile, a systematic soil sampling program at the Chigaio mine at Malilongue aims to assist with identifying future drill targets.

Highlighting the progress that has been made at Malilongue since high impact exploration began in mid-March 2012, Kimberley Rare Earths has completed ground radiometric, soil sampling, stream sediment sampling and grid-based Nitron XRF surveys.

At the Cummins Range project, Kimberley has defined a simple process flow sheet to produce saleable rare earth products.

The customised flow sheet enables the beneficiation of rare earth ore into a mineral concentrate using a froth flotation process.

This is of particular importance given the geological and mineralogical diversity of rare earth deposits and the complexity of extracting and separating multiple metal-based products.

Development of the flow sheet represents a milestone in the overall process flow sheet for Cummins Range, paving the way for the company to confirm a downstream separation flow sheet using existing conventional technologies.

Kimberley Rare Earths finished the March quarter with $12.9 million in cash reserves.



Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Wed, 13 Jun 2012 11:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131949/kimberley-rare-earths-deputy-chairman-appointment-highlights-growth-focus-30034.html
<![CDATA[News - Kimberley Rare Earths discovers 2km long tantalum rich anomaly at Malilongue ]]> http://www.proactiveinvestors.com.au/companies/news/131948/kimberley-rare-earths-discovers-2km-long-tantalum-rich-anomaly-at-malilongue--28639.html Kimberley Rare Earths (ASX: KRE) has identified a new prospect at its Malilongue Rare Earth Project in Mozambique which is shown to host a 2 kilometre long tantalum surface anomaly.

The anomaly has been discovered in the southern eastern margin of the Malilongue granite, around the Chigaio mine.

High values of tantalum in this area are consistent with 2007 test pit results which returned assays exceeding 150 parts per million tantalum.

Tim Dobson, managing director, commented on the discovery:

“These results confirm our strongly held view that Malilongue is extremely prospective for multiple commodities.

“We plan to follow up with drill testing during the 2012 field season.”

In the meantime, Kimberley Rare Earths has begun a systematic soil sampling program at Chigaio to confirm the Niton XRF results and assist with the identification of future drill targets.

Highlighting the progress that has been made at Malilongue since high impact exploration began in mid-March 2012, Kimberley Rare Earths has completed ground radiometric, soil sampling, stream sediment sampling and grid-based Nitron XRF surveys.

Meanwhile, the eastern pegmatite field has not yet been subject to systematic exploration for rare earth oxide mineralisation.

Bulk sampling of the alluvials has been undertaken with selected samples assaying over 20% total rare earth oxides (TREO).

Jig concentrates from 38 separate pits located throughout the pegmatite field averaged over 1,000 parts per million TREO and comprised 55% light rare earth oxides, 25% heavy rare earth oxides (HREO) and 20% yttrium oxide.



Vundu high priority target

Strong comparisons have been drawn between the Vundu prospect and Quest Rare Minerals’ (TSX-V: QRM) Strange Lake pegmatite-hosted deposit in northern Quebec, which hosts an Inferred Resource of 230 million tonnes at 0.91% TREO.

A ground radiometric survey has been completed at the Vundu prospect, which is the largest and highest priority target, measuring 3 kilometres in strike with total count activity levels that peak at eight times background.

The survey confirmed and enhanced the airborne radiometric data previously delivered to the market, as well as provided high resolution data to assist drill targeting.

The size and location of this anomaly are considered geologically significant being located on the margins of the intrusion where pegmatite-hosted HREO mineralisation is expected to occur.


Value of tantalum

Tantalum is a rare metal primarily used in mobile phones, DVD players, video game consoles and computers.

It is a strategic metal with an international market and widespread application.


Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Wed, 09 May 2012 11:45:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131948/kimberley-rare-earths-discovers-2km-long-tantalum-rich-anomaly-at-malilongue--28639.html
<![CDATA[News - Kimberley Rare Earths defines process to produce saleable rare earth products from Cummins Range ]]> http://www.proactiveinvestors.com.au/companies/news/131947/kimberley-rare-earths-defines-process-to-produce-saleable-rare-earth-products-from-cummins-range-27960.html Kimberley Rare Earths (ASX: KRE) has defined a simple process flow sheet to produce saleable rare earth products, a milestone in the development of the Cummins Range project.

This is of particular importance given the geological and mineralogical diversity of rare earth deposits and the complexity of extracting and separating multiple metal-based products.

Metallurgical test work on rare earth samples from Cummins Range has defined a simple, viable customised process flow sheet to beneficiate the rare earth ore into a mineral concentrate using a froth flotation process.

This process uses a custom made collector and does not require fine grinding, steam conditioning or elevated operating temperatures, reducing the capital and operating cost base.

As a result, Kimberley has achieved an un-optimised concentrate grade of 17% total rare earth oxides and 50% recoveries. Kimberley will target recoveries of 60% to 70% with future optimisation work.

Kimberley managing director Tim Dobson said the results were better than expected.

“This represents a significant milestone in the development of the overall process flow sheet for Cummins Range and paves the way for us to confirm an appropriate downstream separation flow sheet using existing conventional technologies,” Dobson said.

Kimberley has been working closely with a research institute in China to develop the process flowsheet and assess the economics of the Cummins Range project.

The work with the institute, which has more than 40 years experience in specialty metals research and development, will also help with the company’s understanding of the mineralogical distribution, liberation and deportment of rare earths within the mineralisation.

Scoping Study

Results from the metallurgical test work will inform various components of the scoping study which is being prepared for Cummins Range.

Following the Scoping Study, stage two metallurgical testing will be carried out with the aim of improving metallurgical recoveries.

The company will also test the application of conventional downstream mineral-cracking and separation technologies on Cummins Range concentrate to confirm the separation of material into rare earth products.

Cummins Range

The Cummins Range project hosts a JORC Resource of 4.9 million tonnes at 1.74% total rare earth oxides.

This includes a number of high grade intercepts at or near surface in the core of the deposit, which offers the potential for a high grade starter pit.

Analysis

Kimberley’s Cummins project is in the same state as Lynas Corporation’s (ASX: LYS) Mount Weld, which is believed to be the richest known rare earths deposit in the world. This provides the company with a road map of sorts for approvals.

In addition, the majority of rare earths oriented stocks have been marked down by the market in the last few months.

Kimberley Rare Earths has been no exception, down from $0.17 in July 2011 to a current share price of $0.086 in April 2012.

On an EV/Resource Tonne valuation, Kimberley is currently one of few rated negatively. Clearly, with any market pick up, this situation will be unlikely to last, providing an opportunity for investors at current prices.

On an in-situ valuation, Cummins' resource would be valued at around $4 billion, depending on recoveries in mining and processing.

While it might have only listed in May 2011, Kimberley is among the front line of rare earth producers, one of few advanced rare earth resource players outside China.

Managing director Tim Dobson is progressing Cummins through exploration and development into production.

The sell-off of rare earth stocks seems to have discounted and disregarded the potential of this world class project, having reduced the market capitalisation of Kimberley to near cash levels.

This provides investors with an opportunity to get onboard at the beginning of a well-funded multi-year exploration and development program.

Kimberley Rare Earths appears ready to follow in the footsteps of other notable Australian rare earth developers such as Lynas Corporation, Arafura Resources (ASX: ARU) and Alkane Resources (ASX: ALK).



Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Mon, 23 Apr 2012 10:22:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131947/kimberley-rare-earths-defines-process-to-produce-saleable-rare-earth-products-from-cummins-range-27960.html
<![CDATA[News - Kimberley Rare Earths hot on the exploration trail for rare earths at Malilongue project ]]> http://www.proactiveinvestors.com.au/companies/news/131946/kimberley-rare-earths-hot-on-the-exploration-trail-for-rare-earths-at-malilongue-project-27364.html Kimberley Rare Earths (ASX: KRE) has commenced a high impact exploration program to assess Heavy Rare Earth (HRE) targets at the Malilongue Rare Earth Project in Mozambique.

Already a number of HRE targets have been identified at Malilongue, based on regional geophysical datasets.

Strong comparisons have been drawn between the Malilongue project and Quest Rare Minerals’ (TSX-V: QRM) Strange Lake pegmatite-hosted deposit in northern Quebec, which hosts an Indicated Resource of 51 million tonnes at 1.16% total rare earth oxides (TREO) within a total Inferred Resource of 230 million tonnes at 1% TREO.

Results from Kimberley’s exploration program at Malilongue will form the basis of a drilling program which is scheduled for the dry season this year.

Kimberley managing director Tim Dobson said field exploration had commenced early and was advancing well.

“The rains are still abating on site after the wet season, however our teams are well into the planned, high‐impact exploration programs,” Dobson said.

“Malilongue has already revealed surface mineralisation with significant xenotime‐hosted critical heavy rare earth oxides such as yttrium, dysprosium and erbium.

“Our priority now is to define drill targets aimed at locating sizable heavy rare earth deposits. Early indications from the exciting Vundu prospect are very encouraging and we await the results from the soil programs.”

Vundu high priority target

A ground radiometric survey is in progress at the Vundu prospect, which is the largest and highest priority target, measuring 3 kilometres in strike with total count activity levels that peak at eight times background.

The size and location of this anomaly are considered geologically significant being located on the margins of the intrusion where pegmatite-hosted HREO mineralisation is expected to occur.

Initial indications from the ground radiometric survey look to confirm and significantly enhance the anomaly, with scintillometer readings in excess of 10 times background recorded.

A systematic soil geochemical program is also underway at Vundu, with samples being collected on a 200 metre by 100 metre grid.

The Vundu grid has been extended to cover the entire northern margin of the Malilongue granite where considerable potential for pegmatite development is indicated by both radiometric and aeromagnetic data.

Soil sampling is also planned over the entire eastern margine of the Malilongue granite, on a 400 metre by 100 metre grid.

All samples will be analysed for the full suite of Rare Earth Elements and precious and base metals, along with other selected metals.

The geological environment is conducive to a number of deposit types, including tin, tungsten, niobium, molybdenum and gold.

First assays from the soil geochemical programs are expected in May, with drill testing of identified targets to begin in June.

Artisanal pegmatite workings identified

Reconnaissance geological mapping has uncovered previously unrecorded artisanal workings excavated within pegmatites.

Importantly, some of these diggings are very recent, indicating that new pegmatite discoveries are being made.

Farm-in Agreement

Kimberley Rare Earths has a 40% interest in the Malilongue Project, with the right to earn up to 90% through a farm-in agreement with Great Western Mining.

Malilongue is just one of a number of acquisitions Kimberley Rare Earths has been considering.

Dobson has previously told Proactive Investors that Kimberley Rare Earths is assessing somewhere between five and 10 potential heavy and light rare earths project acquisitions, both in Australia and overseas.

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Thu, 05 Apr 2012 10:50:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131946/kimberley-rare-earths-hot-on-the-exploration-trail-for-rare-earths-at-malilongue-project-27364.html
<![CDATA[News - Kimberley Rare Earths looks to mergers and acquisitions to strengthen rare earth holdings ]]> http://www.proactiveinvestors.com.au/companies/news/131945/kimberley-rare-earths-looks-to-mergers-and-acquisitions-to-strengthen-rare-earth-holdings-26652.html Kimberley Rare Earths (ASX: KRE) is reviewing opportunities for mergers and acquisitions to complement the company’s rare earth exploration and development assets.

The company is focused on projects that have near term cash flow potential.

Kimberley has interests in the Cummins Range rare earths project in Western Australia and the Malilongue heavy rare earths project in Mozambique.

The process is being supported by a specialist mergers and acquisitions advisory firm.

Last month Kimberley delivered an interim 18% increase in contained total rare earth oxides to 85,000 tonnes at Cummins Range following reverse circulation drilling carried out in 2011.

The addition of new drilling data and the application of a more rigorous geological model resulted in a 17% increase in overall tonnage and a slight improvement in grade.

In addition, Kimberley announced the discovery of multiple heavy rare earth oxide exploration targets at Malilongue.

Strong comparisons have been drawn between the Malilongue project and Quest Rare Minerals’ (TSX-V: QRM) Strange Lake pegmatite-hosted deposit in northern Quebec.

Strange Lake hosts an Indicated Resource of 51 million tonnes at 1.16% total rare earth oxides (TREO) within a total Inferred Resource of 230 million tonnes at 1% TREO.

Kimberley holds a 25% interest in Cummins Range and a 40% interest in Malilongue.

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Tue, 20 Mar 2012 11:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131945/kimberley-rare-earths-looks-to-mergers-and-acquisitions-to-strengthen-rare-earth-holdings-26652.html
<![CDATA[News - Kimberley Rare Earths discovers large heavy rare earth prospect at Malilongue in Mozambique ]]> http://www.proactiveinvestors.com.au/companies/news/131944/kimberley-rare-earths-discovers-large-heavy-rare-earth-prospect-at-malilongue-in-mozambique--25441.html Kimberley Rare Earths (ASX: KRE) has identified multiple heavy rare earth oxide (HREO) exploration targets at its 40%-owned Malilongue Project in Mozambique.

Strong comparisons have been drawn between the Malilongue project and Quest Rare Minerals’ (TSX-V: QRM) Strange Lake pegmatite-hosted deposit in northern Quebec, which hosts an Indicated Resource of 51 million tonnes at 1.16% total rare earth oxides (TREO) within a total Inferred Resource of 230 million tonnes at 1% TREO.

General manager – exploration Geoff Collis told Proactive Investors today Kimberley Rare Earths is highly confident of defining a heavy rare earth deposit at Malilongue.

“The similarities with Strange Lake are quite remarkable and geologically it looks very similar,” he said. “All indications are at the moment that we may be onto the same kind of thing.”

Managing director Tim Dobson said Malilongue has already revealed surface mineralisation with significant xenotime-hosted critical heavy rare earth oxides.

“The recently acquired airborne geophysical and satellite data have considerably enhanced our views on the potential for Malilongue to host significant heavy rare earth deposits,” he said.

“We are particularly excited by the Vundu prospect, which has never previously been explored for any minerals, let alone rare earths. We plan to mobilise field crews as soon as weather permits.”


Vundu

The largest and highest priority target has been named the Vundu prospect and measures 3 kilometres in strike with total count activity levels that peak at eight times background.

The size and location of this anomaly are considered geologically significant being located on the margins of the intrusion where pegmatite-hosted HREO mineralisation is expected to occur.

No previous exploration has been conducted over this area. Kimberley Rare Earths is now planning to conduct ground radiometric surveys, soil geochemistry and geological mapping programs to define targets for reverse circulation drill testing.

This is expected to begin in March, following the current wet season.

High resolution aeromagnetic/radiometric data flown in 2008 by Kimberley Rare Earths’ joint venture partner Great Western Mining has been acquired and reprocessed to reveal considerable HREO potential within the project tenure.

A circular Malilongue granite intrusion was identified which appears to demonstrate significant internal magnetic zonation. This zonation may be a factor in targeting further HREO exploration.

Landsat and ASTER satellite thermal emission and reflectance data were acquired over the project area and manipulated in an attempt to enhance various alteration products potentially associated with pegmatite emplacement.

Strong vegetation cover over most of the project area resulted in a subdued response to many of the alteration ratios, however a marked vegetation anomaly was detected along the northern margins of the granite intrusion and coincident with the Vundu radiometric anomaly in particular.

Collis said Kimberley Rare Earths aims to begin drilling at Malilongue before mid-year, weather permitting.

“If we get some really good hits in the first drilling phase, which hopefully will be around about June, then we’ll be straight into resource drilling after that,” he said.


Impressive historical data

No doubt attracting Kimberley Rare Earths to the Mozambique domiciled project is the historical data, which includes rock chip samples assaying over 20% TREO.

Added to this is concentrates from 38 separate pits located throughout the pegmatite field sampled by the current owner, which have averaged over 1000 parts per million TREO with 55% being light rare earth oxides, 25% HREO and 20% yttrium oxide.

A sample extracted from the eluvial beds was subjected to mineralogical examination by a scanning electron microscope and found to comprise major xenotime and minor monazite and zircon.

In addition to yttrium, the xenotime shows appreciable dysprosium and erbium.


Farm-in Agreement

Under the farm-in agreement made with Great Western Mining, a gemstone mining company incorporated in Mozambique, Kimberley Rare Earths can earn up to a 90% interest in the Malilongue project.

Malilongue is just one of a number of acquisitions Kimberley Rare Earths has been considering.

Dobson also told Proactive Investors previously Kimberley Rare Earths is assessing somewhere between five and 10 potential heavy and light rare earths project acquisitions, both in Australia and overseas.


Cash-backed

At the end of the December quarter Kimberley Rare Earths held cash reserves of A$13.7 million, with a market cap of just $10 million.

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Fri, 17 Feb 2012 10:50:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131944/kimberley-rare-earths-discovers-large-heavy-rare-earth-prospect-at-malilongue-in-mozambique--25441.html
<![CDATA[News - Kimberley Rare Earths delivers interim 18% increase in total rare earth oxides for Cummins ]]> http://www.proactiveinvestors.com.au/companies/news/131943/kimberley-rare-earths-delivers-interim-18-increase-in-total-rare-earth-oxides-for-cummins--25216.html Kimberley Rare Earths (ASX: KRE) has confirmed a preliminary 18% increase in contained total rare earth oxides (TREO) to 85,000 tonnes, using a 1% TREO cut-off, for its Cummins Range project in Western Australia.

All of the 2011 reverse circulation drilling completed by Kimberley Rare Earths and the historic reverse circulation drilling done by Navigator Resources (ASX: NAV) were combined into a fully validated database and supplied to Hellman and Schofield for resource estimation work.

An improved geological model was used to define wire frames from which a solid model was constructed and subsequently used to constrain the final block model.

There is now considerable confidence in the geological model which exhibits good continuity between sections.

The addition of the new drilling data and the application of the more rigorous geological model have resulted in a 17% increase in tonnage and a slight improvement in grade.

The Inferred JORC Resource now stands at 4.9 million tonnes at 1.74% REO for 85,000 tonnes, compared to the 2009 Inferred Resource of 4.17 million tonnes at 1.72% REO for 72,000 tonnes.

Using a 0.5% cut-off, the Inferred Resource increases to 10.76 million tonnes at 1.18% REO for 127,000 tonnes.

Cummins Range is one of only a few Australian rare earths projects with a Resource reported under the JORC Code.

Kimberley Rare Earths is targeting a reclassification of the Resources from Inferred to Indicated later in the year, following additional field work.

The company will recommence reverse circulation and diamond drilling at the end of the current wet season and will target the central core of the deposit to firm up confidence in the density profile and to address sample recovery issues.

Drilling will generate further samples for metallurgical testwork, and will also target extensions to the resource.

The deposit remains open at depth as well as along strike to both the northwest and southeast.

Final assays from the 2011 drilling program returned further wide, high-grade rare earth intersections.

A total of 4,230 metres of drilling was completed in 77 holes initially aimed at extending and upgrading the existing Inferred Resource.

Kimberley Rare Earths plans to complete a Preliminary Evaluation Study by July this year that will evaluate the commercial merit of the project.

The company is progressing a number of activities to complete the Preliminary Evaluation Study, including mining studies, metallurgical and mineralogical studies, environmental studies, capital and operating cost estimation and financial modelling. 

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Mon, 13 Feb 2012 11:10:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131943/kimberley-rare-earths-delivers-interim-18-increase-in-total-rare-earth-oxides-for-cummins--25216.html
<![CDATA[News - Kimberley Rare Earths completes board restructure with appointment of Jon Parker ]]> http://www.proactiveinvestors.com.au/companies/news/131942/kimberley-rare-earths-completes-board-restructure-with-appointment-of-jon-parker-25147.html Kimberley Rare Earths (ASX: KRE) has completed a board restructure announced late in 2011, welcoming Jon Parker as a non-executive director.

Parker brings strong corporate experience in the resource and energy sectors to the board, with 30 years’ experience in commercial, development and strategy roles along with 10 years in technical roles.

He spent 26 years with Rio Tinto in management and executive roles in iron ore, energy, kaolin and aluminium.

Kimberley chairman Ian Macpherson said Parker’s experience with strategy development would be a boon for the company.

“Jon brings a strong focus on strategic thinking to the board and through his recent consulting roles, will be a valuable resource as the company develops its rare earth projects towards production both in Australia and overseas.”

The board restructure was announced following the decision by independent non-executive director Peter Rowe and non-executive director and chief financial officer Gerry Kaczmarek to step down from the board.

Kaczmarek has officially stepped down from the board following Parker’s appointment.

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Fri, 10 Feb 2012 10:35:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131942/kimberley-rare-earths-completes-board-restructure-with-appointment-of-jon-parker-25147.html
<![CDATA[News - Kimberley Rare Earths valued at nearly four times its current share price by broker ]]> http://www.proactiveinvestors.com.au/companies/news/131941/kimberley-rare-earths-valued-at-nearly-four-times-its-current-share-price-by-broker--23974.html Kimberley Rare Earths (ASX: KRE) has attracted a Speculative Buy recommendation from a broker and a price target nearly four times is current share price.

The following is an extract from the report.


WELL FUNDED, RARE EARTHS FOCUSED JUNIOR COMPANY


Investment Perspective: KRE offers a fundamentally sound and cheap entry into the rare earths sector. Results of the recent drilling program have confirmed the geology and extended the existing JORC resource. The grade should also be lifted.

Complementing Cummins Range, KRE has acquired the Malilongue project in Mozambique. The Malilongue REO project is large and samples of the pegmatite have returned outstanding TREO grades with a good proportion of Heavy Rare Earths (HREO). Mineralogical examination has found an exceptional concentration of xenotime.

Overall, this project represents excellent value complementing the Cummins Range project in Western Australia.

Having suffered from a negative market momentum globally and within the rare earths sector, KRE is now trading well below its cash backing. Rare earths prices are still about 10 times what they used to be when Lynas secured funding to develop the Mt Weld project.

KRE remains well funded, far beyond any of its peers with $14m cash to progress and add significant value to its projects. We rate KRE as a SPECULATIVE BUY with a target price of $0.30.


Investment Highlights


Cummins Range REO Project Mine, Western Australia

KRE owns 25%, is fully funded to earn 55% ($4m expenditure required) and has the right to earn up to 80% through the completion of a feasibility study.

The existing JORC resource amounts 4.17 Mt at 1.72% TREO for 71,700 t TREO. The recent drilling programme has confirmed and extended the mineralisation.

An updated resource estimate is expected in Q1 2012.

The open-pit mining scenario has enviable characteristics.

Metallurgical testing is underway and the design of the process flow chart should the benefit of three advanced REO project developments within Australia.

Malilongue HREO Project, Mozambique (earning 90%)

KRE owns 40%, is fully funded to earn 80% ($4m expenditure required) and has the right to earn up to 90% by sole funding expenditure to production.

The Malilongue intrusion is a large 7 km x 3 km pegmatite over which 65 separate artisanal workings are currently exploiting gemstones.

Past rock chip samples have returned excellent grades in the pegmatite with 3 assays out of 4 in the order of 20% TREO.

The proportion of HREO is high, in the order of 26% of the TREO mineralization.

Exploration activities include geophysics reprocessing, mapping, rock chip sampling and stream sediment sampling.

The Malilongue pegmatite presents many similarities with the Strange Lake deposit in Quebec, owned by Quest Rare Minerals (QRM.TSX).

QRM has an enterprise value of $140m, equivalent to $149/t REO based on a resource of 51 Mt @ 1.15% REO.

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Tue, 10 Jan 2012 12:53:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131941/kimberley-rare-earths-valued-at-nearly-four-times-its-current-share-price-by-broker--23974.html
<![CDATA[News - Kimberley Rare Earths to revise Cummins Range rare earths resource in early 2012 ]]> http://www.proactiveinvestors.com.au/companies/news/131940/kimberley-rare-earths-to-revise-cummins-range-rare-earths-resource-in-early-2012-23705.html Kimberley Rare Earths (ASX:KRE) will look to announce a new resource in first quarter of 2012 for the Cummins Range rare earths Project in Western Australia, following completion of the 2011 drilling.

Hellman and Schofield will provide the independent resource estimate.

Final drilling assays from Cummins Range returned further wide, high-grade rare earth intersections. A total of 4,230 metres of drilling was completed in 77 holes initially aimed at extending and upgrading the existing Inferred Resource.

Interestingly, the central rich core of the deposit remains open at depths of greater than 75 metres at Cummins. The sheared, deeply weathered carbonatite does produce challenging drilling conditions and much of the 500 metres central rich core zone remains open below these depths.

Cummins Range has a JORC Inferred Resource of 4.17 million tonnes at 1.72% TREO (total rare earth oxide).   It is one of only a few Australian rare earths projects with a Resource reported under the JORC Code.

The 2011 drill campaign advanced the understanding of the geology and resource at Cummins Range, and confirmed its status as a high quality rare earths deposit.

It alsp provided critical additional drill information and sample materials to advance the project’s resource and mineral processing studies.

A Preliminary Evaluation Study on the project is due for completion by July 2012.

Metallurgical testwork is being conducted over the next few months on samples from both the 2007 (NAV) drilling program and the 2011 KRE drilling program just completed.

Results from this work are expected to identify the need for more comprehensive metallurgical test work, and larger samples.

A metallurgical sampling program including diamond drilling, trenching and bulk sampling is also planned to commence as soon as access to site is regained following the wet season.

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Fri, 30 Dec 2011 11:13:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131940/kimberley-rare-earths-to-revise-cummins-range-rare-earths-resource-in-early-2012-23705.html
<![CDATA[News - Kimberley Rare Earths nears start of exploration at Malilongue after earning 40% interest ]]> http://www.proactiveinvestors.com.au/companies/news/131939/kimberley-rare-earths-nears-start-of-exploration-at-malilongue-after-earning-40-interest--23290.html Kimberley Rare Earths (ASX: KRE) has reached the significant milestone of acquiring a 40% interest in the Malilongue heavy rare earths project in northwest Mozambique after recently completing due diligence on the project.

Malilongue is a pegmatite hosted rare earths project which hosts major exploration potential, including for xenotime-hosted yttrium, dysprosium and erbium.

Previous pegmatite grab samples assaying over 20% total rare earth oxides show the highly prospective nature of the project.

Kimberley Rare Earths managing director Tim Dobson said the deal provides the company with a heavy rare earths project to add to its portfolio, which includes the Cummins Range Rare Earth Project in Western Australia which is a light rare earths project.

Under the farm-in agreement made with Great Western Mining, a gemstone mining company incorporated in Mozambique, Kimberley Rare Earths can earn up to a 90% interest in the Malilongue project.

To satisfy the acquisition of the initial 40% interest, Kimberley Rare Earths will pay Great Western a further A$250,000, taking total payments to $300,000, as well as issue 1 million shares at the five day volume weighted average price prior to issue and 750,000 options exercisable at $0.30 each within four years from six months after the date of issue.

Additional consideration comprises a cumulative $4 million payment over five years to earn up to 80%, with a right to increase to 90% by sole funding to production.

Kimberley Rare Earths will begin exploration immediately with the re-processing of geophysical and Landsat data to define suitable exploration targets for follow-up.

Dobson said the first exploration program will include including geological mapping, rock chip sampling and stream sediment sampling to identify the first drilling targets.

The company is aiming to have a rig on the project for the start of drilling after Mozambique’s wet season in the June quarter 2012.


Impressive historical data

No doubt attracting Kimberley Rare Earths to the Mozambique domiciled project is the historical data, which includes rock chip samples assaying over 20% TREO.

Added to this is concentrates from 38 separate pits located throughout the pegmatite field sampled by the current owner, which have averaged over 1000ppm TREO with 55% being LREO, 25% HREO and 20% yttrium oxide.

A sample extracted from the eluvial beds was subjected to mineralogical examination by a scanning electron microscope and found to comprise major xenotime and minor monazite and zircon.

In addition to yttrium, the xenotime shows appreciable dysprosium and erbium.


Strategic project location

Malilongue is located in western Mozambique about 300 kilometres west of the regional mining centre of Tete, and comprises two tenements, Mining Concession 1133C and Prospecting License 1583L.

Another plus for the project is good access with grid hydroelectric power, with mobile phone coverage located 50 kilometres to the east.

Great Western has established some basic infrastructure within the mining concession including a secure office, accommodation, workshop complex and has fully operational earth moving, haulage and treatment facilities associated with its gemstone operation.

 

Potential Projects

Dobson also told Proactive Investors Kimberley Rare Earths is assessing somewhere between five and 10 potential heavy and light rare earths project acquisitions at the moment, both in Australia and overseas.

“We are looking at other rare earth projects. We will only take on good quality projects. One of our biggest assets is our cash position and we want to make sure we conserve that as best we can,” he said. 

“We’ve only got room for a couple of grassroots projects. I am actually looking for another advanced project. Our plan is to have a pipeline of projects that will move into production over say the next five to 10 years.”

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Fri, 09 Dec 2011 11:29:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131939/kimberley-rare-earths-nears-start-of-exploration-at-malilongue-after-earning-40-interest--23290.html
<![CDATA[News - Kimberley Rare Earths intercepts broad zones of rare earths at Cummins Range, Western Australia ]]> http://www.proactiveinvestors.com.au/companies/news/131938/kimberley-rare-earths-intercepts-broad-zones-of-rare-earths-at-cummins-range-western-australia-23071.html Kimberley Rare Earths (ASX: KRE) has intercepted up to 41 metres at 3.85% total rare earth oxides (TREO) at the Cummins Range Rare Earth Project in Western Australia as it aims to upgrade the project’s Resource.

Broad rare earth intercepts have been returned from the infill and extensional reverse circulation drilling program that was recently completed at Cummins Range.

The best intercepts from the program include:

- 41 metres at 3.85% TREO from 11 metres;
- 61 metres at 2.04% TREO from 2 metres; and
- 30 metres at 2.93% TREO from 37 metres.

High grade intercepts of up to 3 metres at 11.14% TREO from 51 metres have also been intercepted.

So far about 50% of assays from the program have been received, with the remainder due within 10 days.

“The most exciting thing about this for us is it’s really confirmed this deposit as being a very consistent and good quality deposit,” Kimberley managing director Tim Dobson told Proactive Investors today.

“Also, it’s changed our view on the shape of it a little bit, having a northwest-southeast strike, and we’re seeing that it’s still open in those directions, both to the northwest and to the southeast.”

Segments of the deposit have been observed as being preferentially enriched in heavy rare earth oxides (HREO), with studies underway to determine if these can be taken advantage of during the early stages of mining.

There is potential to exploit the deposit using open pit mining, with much of the deposit outcropping or occurring within 50 metres of the surface. Due to the near surface nature of the mineralisation, no pre-strip would be required for a potential starter pit.

Importantly, low levels of uranium and thorium could reduce the radiation management criteria for the project.

The Cummins Range drilling program was initially aimed at extending and upgrading the existing JORC Inferred Resource, which currently stands at 11 million tonnes at 1.1% TREO, based on a 0.5% cut-off.

Results from a 2007 drilling program at the site were missing some quality control data and lacked a specific gravity measurement, meaning the Resource was unable to be upgraded.

Dobson said the company was focused on gathering sufficient data to make an upgrade possible.

“We’ve now measured that specific gravity, and in conjunction with the independent geologist we have got all the quality assurance/quality control done properly, so we’ve now ticked both those boxes."

A total of 4,230 metres of drilling has been completed in 77 holes, with 4,499 samples submitted to Intertek/Genalysis in Perth for analysis.

In addition to rare earths, each sample will be assayed for uranium, thorium, phosphorus, scandium, niobium, tantalum and a range of gangue elements, to assist with metallurgical characterisation.

Kimberley also tested five high priority aeromagnetic target areas, with drill sites selected by combining the gravity and geochemical data.

Difficult drilling conditions including binding clays, voids and water flow in several holes reduced the program over the central resource area.

These ground conditions are also characteristic of the strongest mineralised zones in the Cummins Range rare earth resource.

While final results are pending, Dobson says Kimberley has started metallurgy work, with basic sighter flotation tests being carried out on samples from the 2007 drilling campaign.

“Once we’ve got all the assays in we’ll then identify which samples, intersections that we want to use for a much larger flotation test work campaign," he said.

“Over the summer when we can’t drill we’ll actually be doing a lot of metallurgy; that will then also assist us with the next drilling program and we will almost definitely take a diamond drill rig into the site at the end of the wet season to get much better metallurgical samples.”

Kimberley holds a 25% interest in Cummins Range, but has the right to earn up to 80% by finding exploration and development through to the delivery of a bankable feasibility study.

The company will spend $10 million within four years to increase its interest to 55%.

Analysis

Kimberley’s Cummins project is in the same state as Lynas Corporation’s (ASX: LYS) Mount Weld, which is believed to be the richest known rare earths deposit in the world. This provides the company with a road map of sorts for approvals.

In addition, the majority of rare earths oriented stocks have been marked down by the market in the last few months.

Kimberley Rare Earths has been no exception, down from $0.17 in July to a current share price of $0.10 in December,

On an EV/Resource Tonne valuation, Kimberley is currently one of few rated negatively. Clearly, with any market pick up, this situation will be unlikely to last, providing an opportunity for investors at current prices.

On an in-situ valuation, Cummins' resource would be valued at around $4 billion, depending on recoveries in mining and processing.

While it might have only listed in May 2011, Kimberley is among the front line of rare earth producers, one of few advanced rare earth resource players outside China.

Managing director Tim Dobson is progressing Cummins through exploration and development into production.

The sell-off of rare earth stocks seems to have discounted and disregarded the potential of this world class project, having reduced the market capitalisation of Kimberley to near cash levels.

This provides investors with an opportunity to get onboard at the beginning of a well-funded multi-year exploration and development program.

Kimberley Rare Earths appears ready to follow in the footsteps of other notable Australian rare earth developers such as Lynas Corporation, Arafura Resources (ASX: ARU) and Alkane Resources (ASX: ALK).

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Tue, 06 Dec 2011 10:42:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131938/kimberley-rare-earths-intercepts-broad-zones-of-rare-earths-at-cummins-range-western-australia-23071.html
<![CDATA[News - Kimberley Rare Earths set to restructure board ]]> http://www.proactiveinvestors.com.au/companies/news/131937/kimberley-rare-earths-set-to-restructure-board-22727.html Kimberley Rare Earths (ASX: KRE) is kicking off a board restructure, with the aim of bringing in two non-executive directors to complement the company’s remaining board and senior management team.

The restructure is expected to be complete by the end of March, 2012.

The move was sparked by the decision by independent non-executive director Peter Rowe and non-executive director and chief financial officer Gerry Kaczmarek to step down from the company’s board.

Rowe will remain as a technical consultant to Kimberley, but will not seek re-election to the board at the company’s annual general meeting today, while Kaczmarek will remain on the board until completion of the restructure.

Rowe, who was appointed to the board in the early stages of the formation of Kimberley, has cited other board and professional commitments is his decision.

Kaczmarek’s resignation is due in part to Navigator Resources’ (ASX: NAV) reduced shareholding, a result of the recent in-specie distribution of Kimberley shares to Navigator shareholders.

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Tue, 29 Nov 2011 15:05:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131937/kimberley-rare-earths-set-to-restructure-board-22727.html
<![CDATA[News - Kimberley Rare Earths eyes upgrade to 11Mt at 1.1% TREO within months at Cummins Range ]]> http://www.proactiveinvestors.com.au/companies/news/131936/kimberley-rare-earths-eyes-upgrade-to-11mt-at-11-treo-within-months-at-cummins-range-21996.html Kimberley Rare Earths (ASX: KRE) is advancing closer to a resource upgrade and is awaiting drill assays from a recently completed reverse circulation drilling program at its Cummins Range rare earths project in Western Australia.

A total of 4,230 metres of drilling was completed in 77 holes aimed at boosting both the size and classification of the existing JORC Inferred Resource of 11 million tonnes at 1.1% total rare earths oxides (TREO) (0.5% cut-off).

A boost to the project is the fact that the resource oxide blend at Cummins Range is very similar to Lynas Corporations' (ASX: LYS) Mt Weld, believed to be the richest known deposit of rare earths in the world.

Each of the five high priority aeromagnetic targets defined previously within the Cummins Range pipe were subjected to scout drill tests.

Drill sites were selected by combining the gravity and geochemical data to prioritise the more prospective zones within the five aeromagnetic targets.

Chief executive officer Tim Dobson told Proactive Investors today Kimberley Rare Earths has also confirmed a proper specific gravity estimate of the Cummins Range deposit which was not undertaken previously.

"Resource estimators are usually reluctant to put things into an Indicated category without a proper measurement of the specific gravity, or the SG, of the deposit," he said.

"So we’ve done downhole gamma gamma logging now and we have an idea of the SG."

Difficult drilling conditions including binding clays, voids and water flow in several holes curtailed a component of the planned drilling resulting in a reduced program over the central resource area.

Such ground conditions are characteristic of the most strongly mineralised zones of the Cummins Range rare earth resource.

All reverse circulation drill samples have now been received by the laboratory and initial analytical results are expected shortly, with final completion of all analyses due by late November or early December.

Field activities at Cummins Range are currently being wound up for 2011 due to the onset of the northern wet season including regular thunderstorms and scrub fires.

Dobson said Kimberley Rare Earths expects to probably resume work at Cummins Range in about March or April 2012, when the wet season ends and access is restored to the project.

“When we go back in we’ll be taking a diamond drill rig in to collect metallurgical samples, as well as more reverse circulation drilling,” he said. 

In other news, Kimberley Rare Earths is due to complete legal due diligence on the Malilongue rare earths project in Mozambique in mid-December.

In late September, the company announced it had entered into an agreement with Great Western Mining to secure an option over the project.

 

Boosting Kimberley Rare Earth Expertise

Kimberley Rare Earths has appointed Michael Chan as General Manager – Project Development  for Cummins Range.
 
The appointment is a coup for Kimberley Rare Earths as rare earths metallurgical expertise is known to be almost non‐existent outside of China.

Chan, who will take the reins in mid-December 2011, has direct experience on the Mt Weld rare earths project being developed by Lynas Corporation.

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Mon, 14 Nov 2011 13:44:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131936/kimberley-rare-earths-eyes-upgrade-to-11mt-at-11-treo-within-months-at-cummins-range-21996.html
<![CDATA[News - Kimberley Rare Earths secures key rare earths metallurgical expert for Cummins Range ]]> http://www.proactiveinvestors.com.au/companies/news/131935/kimberley-rare-earths-secures-key-rare-earths-metallurgical-expert-for-cummins-range-21873.html Kimberley Rare Earths (ASX: KRE) has appointed Michael Chan as General Manager - Project Development  for Cummins Range. 

The appointment is a coup for KRE as rare earths metallurgical expertise is known to be almost non‐existent outside of China.

Chan, who will take the reins in mid-December 2011, has direct experience on the Mt Weld rare earths project being developed by Lynas Corporation (ASX:LYC).

His experience with Mt Weld commenced in 1989 when he was Manager ‐ Metallurgy/Process Engineering for the project with Ashton Mining Limited. During that time, Chan developed a unique process flow sheet for the complex Mt Weld metallurgy and co‐authored a technical paper on this subject with Dudley Kingsnorth.

Chan established Lynas’ presence in Kuantan, Malaysia. Lynas has since gone on to build their $270 million downstream rare earth metallurgical facility at Gebeng.

The large and complex Nolans Bore rare earth deposit in Northern Territory is being developed towards production by Arafura Resources (ASX: ARU). He joined Arafura in 2009 as Procurement/Supply Chain Manager where he has worked until joining KRE.

Tim Dobson, managing director, commented on his support for the appointment, adding "Michael brings world class rare earth project experience and critical Asian network connectivity to the role.

"His appointment strongly supports our resolve to differentiate KRE as a serious and capable rare earths project development company that is committed to the rapid but disciplined development of Cummins Range”.


Milestone delivery timetable

One of Kimberley’s three strategic objectives is to evaluate the flagship Cummins Range rare earths project for the purpose of achieving near term commercial development.

The objective has been developed into a strategic business plan, now budgeted and approved by the board, and requires the services of an experienced rare earths project manager to lead the three phases of studies, which Chan will do working with Geoff Collis (general manager - exploration).

Milestone deliveries for Kimberley include:

- Preliminary Evaluation Study for delivery by July 2012;
- Pre‐Feasibility Study with forecast completion in 2013; and
- Bankable Feasible Studies with forecast completion in 2015.

 

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Thu, 10 Nov 2011 13:01:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131935/kimberley-rare-earths-secures-key-rare-earths-metallurgical-expert-for-cummins-range-21873.html
<![CDATA[News - Kimberley Rare Earths: trading at cash backing, developing an advanced rare earths project ]]> http://www.proactiveinvestors.com.au/companies/news/131934/kimberley-rare-earths-trading-at-cash-backing-developing-an-advanced-rare-earths-project-20734.html Kimberley Rare Earths (ASX: KRE) listed on the ASX in mid 2011, and is a spin off from Navigator Resources (ASX: NAV) of its highly prospective Cummins Range Rare Earths Deposit.

Kimberley listed on the Australian Securities Exchange on 18 May 2011, having raised $18.2m under an oversubscribed Initial Public Offering.

Navigator Resources now holds a 25% interest in the Cummins Range Project.

The Cummins Range project comprises 1 granted exploration license (80/2232) in the East Kimberley with an area of 48.5km2 and within which is contained an independently estimated Inferred JORC compliant resource.

The resource contains 4.17 Mt at an average grade of 1.72% TREO (total rare earth oxide) for 71,700 tonnes TREO, 11.0% P2O5 and 187 ppm U3O8 (using a 1% TREO cut off).

A cut off grade of 0.5% increases the resource to 11 million tonnes at 1.1% of total rare earth oxides, for a total of 120,000 tonnes of rare earth oxides.

The Cummins Range project is one of only a few Australian rare earths projects with a Resource reported under the JORC Code.  KRE’s Cummins Range is one of only five JORC defined rare earth resources in Australia.

Cummins is only 1 of 20 formally defined rare mineral resources in the world today, There are currently 155 rare earth projects in the world today that are outside of China, and only 12 of these hold Proven and Probable, Measured and Indicated or Inferred Resources, with Kimberley numbered amongst those holding Inferred Resources.

Cummins is located 130 kilometres south west of Halls Creek, in the East Kimberley region of northern Western Australia, and is nearby existing gold, nickel-copper, and diamond producers.

There are no tourism or community overlaps and several operating mines operate in the area where Cummins is located.  Northern Australia is the nearest future REO region to Japan (5,500km) and China (4,500km).

The resource at Cummins is currently contained within a small portion of a large carbonatite intrusion situated amongst a larger number of targets that is now on a fast track for drilling, resource upgrade, and development of a bankable feasibility study.

Kimberley holds $16.912 million in cash, and is committed to a $10 million development effort to secure an 80% ownership interest, and quickly bring Cummins to the stage where a decision to mine can be reached.

Kimberly's interest in Cummins will increase by 30% to a total of 55%, upon completion of $10 million of exploration expenditures within the next 4 years.

A further 25% interest will be obtained on completion of a Bankable Feasibility Study, which will result in a final joint venture split of 80% to Kimberley, and 20% to Navigator Resources.

Navigator had previously completed drilling over a mineralized area that measured 400 by 500 metres and covered less than one quarter of a clearly defined carbonatite infusion at Cummins.

Navigator also confirmed that mineralization remained open in all directions, and that a number of additional highly prospective targets were identified for further exploration.  

Studies confirmed that Cummins is a laterite on a carbonatite diatreme that is intruded into pyroxenite, and hosts similar geology to the Mount Weld rare earth deposit, which is located near Laverton, Western Australia. Mount Weld is one of the richest rare earth deposits in the world and is owned by Lynas Corporation (ASX: LYC).

High REO Grades near Surface

The resource at Cummins is located within 75 metres of the surface, hosting drilling highlights at NRC 038 of 17 metres at 5.27% REO, at a depth of 42 metres, and NRC 058 of 29 metres at 4.57% REO, at a depth of 27 metres, confirming that the deposit will be amenable to low cost extraction from a shallow open pit.  

NCR 070 recorded 20 metres of 5.36% REO, with several 1 metre intersections grading 28.7%, and 21.43% REO.  NCR 068 intersected 40 metres at 3.74% REO, with 3 intersections of 1 metre at 12.63%, 13.56% and 14.84% REO, attesting to the high grade nature of the mineralization.   

Conceptual mine studies indicate a production rate of 2,000 to 4,000 tonnes of REO per year is possible, over a mine life of 10 years, with future increases in resource size adding to this rate.

Bulk mining from an open pit could send feedstock to an on site concentrator employing floatation, heavy media separation and magnetic methods, with potential by products including uranium and phosphate. Early studies assume a recovery rate of 60% of the rare earth oxides.

Preliminary metallurgical studies at Cummins show the presence of monazite and apatite along with minor amounts of bastnaesite. Both monazite and apatite have long established histories as sources of rare earths in mining operations worldwide.

Arafura Resources (ASX: ARU) has recently advanced the Nolan’s rare earth resource to the bankable feasibility stage, and has successfully extracted rare earths from apatite, and is planning an annualized production rate of 20,000 tonnes.

Cummins contains an array of rare earths, but is predominant in Lanthanum with 27.3%, Cerium at 47.7% and Neodymium at 15.2% as a proportion of the rare earth content.

The REO mix is mainly light rare earths where demand for rare earth elements such as cerium and lanthanum are strongest long term.  These elements are prized in steel alloys and batteries.

The value of rare earths within the current resource mix has been estimated at US$110.16 per kilo of total oxides produced, based on recent market pricing, and places Cummins on near pricing parity with Mount Weld, and slightly below Nolan’s and the Dubbo Rare Earth Project under development by Alkane Resources (ASX: ALK).

Potential for Resource Expansion

The Company has secured a drilling contractor and has launched its first drilling campaign.  

The Current Inferred Resource is open to the north and west.  New geophysics has revealed multiple new targets.  RC Drilling commenced 9th September.  This will consist of 7,500 metres of Rotary Core drilling, which will infill the current resource so that it can be upgraded from and Inferred to Indicated JORC compliant status.

The remainder of the drilling will step out to the northwest, which appears to carry the highest grades defined in the resource area so far.

A close spaced, low altitude, high resolution aeromagnetic and radiometric survey was recently completed over the entire Cummins Range diatreme, and surrounding country rock.

A close spaced ground gravity survey was also launched, and is expected to define areas of deepest weathering and appears to be coincident with the highest grades of rare earth oxides that have been previously defined.

High resolution satellite imagery of the project area was obtained, and will serve as a baseline for all logistical, environmental and development activities, and an auger contractor was retained to collect 1,354 samples across the entire tenement area, in an effort to define additional areas of rare earth mineralization.  

A metallurgical consultant has also been retained to review extraction and concentration technologies, downstream processing, and separation of various rare earths. Beneficiation studies will commence as soon as samples become available.

The Scale to be a Producer

Production rate deposits of similar size and grade indicate 2,000-4,000 tonnes per annum of rare earth oxides  may be possible.  Mine life assuming a 60% recovery indicates a possible mine life of +10 years.  The most likely operating scenario is for an open pit mine and on-site process plant to produce REO intermediate product and an off-site downstream processing to produce marketable products.

The company has appointed Tim Dobson as CEO, who has had long term experience focused on process and technical issues at large scale mining operations conducted worldwide. Geoff Collis was appointed as General Manager of Exploration, and has served in a senior role as exploration manager in many Western Australian and African exploration programs.

Mozambique rare earths acquisition

KRE has entered an agreement to earn up to a 90% interest in a pegmatite‐hosted rare earth project in Mozambique, with significant exploration potential, including for xenotime‐hosted yttrium, dysprosium and erbium.

A Heads of Agreement was signed with terms including total cash consideration of $300,000 payable up front to earn 40% JV interest in non gemstone rights, then cumulative $4 million over 5 years to earn up to 80%, with a right to increase to 90% by sole funding to production.

Historical data is promising and includes rock chip samples assaying over 20% TREO, and concentrates from 38 separate pits located throughout the pegmatite field sampled by current owner averaged over 1000ppm TREO with 55% being LREO, 25% HREO and 20% yttrium oxide.

Demand/Supply of rare earths

Rare earth prices did retreat in August and September. This is only to be expected as some RE prices such as Lanthanum Oxide peaked at 2,042% higher than the 30 June 2010 price.

There is a medium to long term RE supply bottleneck.  China is methodically restricting exports.  Demand is increasing through consumer growth and green technologies.  

Substitution options are either not possible, novel (years off) or more expensive.  It is now critical that RE mines are developed outside China to maintain supply.

Cash at Bank

Currently, this stands at $16.1 million.

Catalysts

- Undertake metallurgical test work studies at Cummins.  These will target a test-scale production of rare earth metal concentrates for the purpose of achieving near term commercial development
- Update in Cummins Resource Estimate in November

Analysis

That Cummins is in the same state as Lynas’ Mount Weld which provides Kimberley with a road-map of sorts for approvals.

Most rare earths oriented stocks have been marked down by the market in the last few months.

Kimberley Rare Earths has been no exception, down from $0.17 in July to current share price of $0.12 in October for a market value of $15.1 million.   Cash backing per share is currently $0.13.  Hence current market capitalisation ascribes nil value to Cummins.

Consequently, on an EV/Resource Tonne valuation, Kimberley is currently negative and one of few so rated.  Clearly, with any market pick up, this situation will be unlikely to last, providing an opportunity for investors at current prices.

On an in-situ valuation, Cummins' resource would be valued at around $4 billion, depending on recoveries in mining and processing.

While it might have only listed in 2011, Kimberley is amongst the front line of rare earth producers.  Kimberley is an advanced Australian rare earth resource play, one of few outside China.  Tim Dobson is progressing Cummins through exploration and development into production.

The new project offers potential for yttrium, dysprosium and terbium, all rare earth metals in critically short global supply, and complements the light rare earth project being developed at Cummins Range.

In the sell-off of rare earth stocks a number of stocks seem to have totally discounted and disregarded the potential of this world class project, having reduced the market capitalization of Kimberley to near cash levels, and providing investors with an opportunity to get onboard at the commencement of a well funded multi-year exploration and development program.  

Kimberley Rare Earths appears ready to follow in the footsteps of other notable Australian rare earth developers such as Lynas Corporation, Arafura Resources and Alkane Resources.

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Fri, 14 Oct 2011 08:33:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131934/kimberley-rare-earths-trading-at-cash-backing-developing-an-advanced-rare-earths-project-20734.html
<![CDATA[News - Kimberley Rare Earths receives buy recommendation from BGF Equities ]]> http://www.proactiveinvestors.com.au/companies/news/131933/kimberley-rare-earths-receives-buy-recommendation-from-bgf-equities-20435.html The newly minted Kimberley Rare Earths (ASX: KRE) has already started to receive some support from the broader finance and investment community, with BGF Equities placing a speculative buy on the stock.

Following is an extract from BGF Equities research.


Mozambique High Grade Heavy Rare Earths Deal Adds Balance

Event Farm-in agreement to earn up to 90% interest in a pegmatite-hosted rare earth project in Mozambique.

Comment KRE has added a promising heavy rare earths project to its portfolio with the agreement to earn into the Malilongue REO project in Mozambique.

Mineralogical examination has found an exceptional concentration of xenotime, which is very rare. In addition to yttrium, the xenotime shows appreciable presence of dysprosium, terbium and erbium, heavy rare earth metals in critically short global supply.

Strongly encouraging samples have been obtained from tailings from a topaz mining operations but systematic sampling, particularly of the hard rock geology, needs to be undertaken.

Rare earth stocks have been out of favour in recent months as investors have focused on more pressing concerns than how to profit from advanced technology metals, but that is providing a buying opportunity for longer term thinkers.

KRE is the lowest cost entry into the sector as it is selling at less than cash backing, it has a JORC compliant resource in WA, and it has just signed up the rights to what could be a significant source of the most valuable end of the rare earths – the heavies.

It is developing as a sensibly balanced rare earth specialist, with a very strong cash balance that will restrict the downside from here.

SPECULATIVE BUY.

Price: $0.11 Market Cap’n: $13.8m Cash $16.9m (30/6/11)

Key Points:

The project is located a few hours drive from Tete, Mozambique new mining epicenter (iron ore and coal, particularly coking coal) and where a number of companies are making in-roads (BHP, Vale, African Eagle, Globe Metals and Mining, Baobab Resources) in parallel to Rio Tinto making a grab of Riversdale.

The Malilongue intrusion is a large 7km x 3km pegmatite over which 65 separate artisanal workings have currently operating exploiting gemstones such as amazonite, aquamarine and topaz of exceptional quality. The agreement covers all metals but excludes gemstones. Past rock chip samples have returned excellent grades in the pegmatite with 3 assays out of 4 in the order
of 20% TREO.

The proportion of HREO is high in the order of 26% of the TREO mineralization.

This project is in the early days of exploration. No systematic exploration for REO mineralization has been undertaken in the area. As such, the deal has been structured to include technical due diligence and staged consideration.

The Malilongue pegmatite presents many similarities with the Strange Lake deposit in Quebec, own by Quest Rare Minerals (QRM.TSX). QRM has an enterprise value $100m, equivalent to $171/t REO.

KRE is currently drilling at Cummins Range with a view to adding to the JORC resource.

 

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Thu, 06 Oct 2011 08:06:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131933/kimberley-rare-earths-receives-buy-recommendation-from-bgf-equities-20435.html
<![CDATA[News - Kimberley Rare Earths: Tim Dobson joins board as managing director ]]> http://www.proactiveinvestors.com.au/companies/news/131932/kimberley-rare-earths-tim-dobson-joins-board-as-managing-director-20305.html Kimberley Rare Earths (ASX: KRE) chief executive officer Tim Dobson has accepted an invitation by the board to become managing director.

Kimberley Rare Earths is currently in a fascinating position, after only being minted a couple of months ago.

The company is already achieving the objectives set out in the IPO, which stated that the company will assess and, if warranted, acquire other rare earths projects that have potential to add value.

Just last week the company secured a significant interest in a strategic pegmatite hosted rare earth project in Mozambique, which hosts major exploration potential, including for xenotime‐hosted yttrium, dysprosium and erbium.

Artisanal miners have historically exploited the area for topaz, aquamarine and amazonite gemstones of exceptional quality.

Kimberley Rare Earths can earn up to a 90% interest in the Malilongue project, with terms including an up front $300,000 cash payment to earn a 40% joint venture interest in the non-gemstone rights.

Additional consideration comprises a cumulative $4 million payment over 5 years to earn up to 80%, with a right to increase to 90% by sole funding to production.


Impressive historical data

No doubt attracting Kimberley Rare Earths to the Mozambique domiciled project is the historical data, which includes rock chip samples assaying over 20% TREO.

Added to this is concentrates from 38 separate pits located throughout the pegmatite field sampled by the current owner, which have averaged over 1000ppm TREO with 55% being LREO, 25% HREO and 20% yttrium oxide.

A sample extracted from the eluvial beds was subjected to mineralogical examination by a scanning electron microscope and found to comprise major xenotime and minor monazite and zircon.

In addition to yttrium, the xenotime shows appreciable dysprosium and erbium.

 

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Mon, 03 Oct 2011 11:40:00 +1100 http://www.proactiveinvestors.com.au/companies/news/131932/kimberley-rare-earths-tim-dobson-joins-board-as-managing-director-20305.html
<![CDATA[News - Kimberley Rare Earths dials into pegmatite hosted rare earth project in Mozambique ]]> http://www.proactiveinvestors.com.au/companies/news/131931/kimberley-rare-earths-dials-into-pegmatite-hosted-rare-earth-project-in-mozambique-20179.html Kimberley Rare Earths (ASX: KRE) has hit the ground running in just the first few months of public life after being admitted to the ASX after a successful IPO in mid-2011.

Kimberley Rare Earths is already achieving the objectives set out in the IPO, which stated that the company will assess and, if warranted, acquire other rare earths projects that have potential to add value.

The company has now secured a significant interest in a strategic pegmatite hosted rare earth project in Mozambique, which hosts major exploration potential, including for xenotime‐hosted yttrium, dysprosium and erbium.

Artisanal miners have historically exploited the area for topaz, aquamarine and amazonite gemstones of exceptional quality.

Kimberley Rare Earths can earn up to a 90% interest in the Malilongue project, with terms including an up front $300,000 cash payment to earn a 40% joint venture interest in the non-gemstone rights.

Additional consideration comprises a cumulative $4 million payment over 5 years to earn up to 80%, with a right to increase to 90% by sole funding to production.

The agreement has been made with Great Western Mining (GWM), a gemstone mining company incorporated in Mozambique.

Tim Dobson, chief executive officer of Kimberley Rare Earths, provided some very positive comments on the African joint venture, “Malilongue presents an excellent focal point for our exploration team to add medium to long term value while our development focus rests squarely with Cummins Range.

"Additionally, the new project has exciting potential for yttrium, dysprosium and terbium, all rare earth metals in critically short global supply, and complements the light rare earth project being developed at Cummins Range.”

The exclusivity period for the project will expire on 12th November following which, subject to due diligence, the company intends to complete the first farm-in transaction, and commence exploration activities.

Dobson also told Proactive Investors today that the company have been actively looking at other projects since listing.

"There are several other projects at early stages that we have been looking at - located both domestically and internationally."


Impressive historical data

No doubt attracting Kimberley Rare Earths to the Mozambique domiciled project is the historical data, which includes rock chip samples assaying over 20% TREO.

Added to this is concentrates from 38 separate pits located throughout the pegmatite field sampled by the current owner, which have averaged over 1000ppm TREO with 55% being LREO, 25% HREO and 20% yttrium oxide.

A sample extracted from the eluvial beds was subjected to mineralogical examination by a scanning electron microscope and found to comprise major xenotime and minor monazite and zircon.

In addition to yttrium, the xenotime shows appreciable dysprosium and erbium.

A further boost to the prospectivity is that the pegmatite-hosted mineralisation at Malilongue shows many similarities to Quest Resources’ Strange Lake deposit in Quebec Canada.

Quest has a 43‐101 compliant Indicated Mineral Resource of 36.4 million tonnes at 1.16% TREO with 57% being LREO, 15% HREO and 28% yttrium oxide.


Strategic project location

Malilongue is located in western Mozambique about 300 kilometres west of the regional mining centre of Tete, and comprises two tenements, Mining Concession 1133C and Prospecting License 1583L.

Another plus for the project is good access with grid hydroelectric power, with mobile phone coverage located 50 kilometres to the east.

GWM has established some basic infrastructure within the mining concession including a secure office / accommodation / workshop complex and have fully operational earth moving, haulage and treatment facilities associated with their gemstone operation.

 

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Thu, 29 Sep 2011 09:58:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131931/kimberley-rare-earths-dials-into-pegmatite-hosted-rare-earth-project-in-mozambique-20179.html
<![CDATA[News - Kimberley Rare Earths eyes JORC upgrade at Cummins Range ]]> http://www.proactiveinvestors.com.au/companies/news/131930/kimberley-rare-earths-eyes-jorc-upgrade-at-cummins-range-18961.html The newly minted Kimberley Rare Earths (ASX: KRE) is already eyeing a JORC upgrade at the Cummins Range rare earth project in the East Kimberley region of Western Australia - after identifying resource extensions.

The company has kicked off a high-impact exploration program aimed at boosting both the size and classification of the existing JORC Inferred Resource of 11 million tonnes at 1.1% total rare earths oxides (TREO) (0.5% cut-off).

A new high-resolution aeromagnetic survey revealed significant new resource extension targets at Cummins Range, with multiple extensions of magnetic lows beyond existing drill coverage - which the company said supports the resource extension potential.

To kick off the exploration program targeting the untested magnetic lows within the Cummins Range pipe, 5,500 metres of reverse drilling will commence in early 7 September, with a PoW submitted for additional 11,000 metres.

Tim Dobson, chief executive officer, told Proactive Investors that interim results from the program will be available from late October, with the final set of assays in mid-November - with the highly anticipated resource update in early December.


Aeromagnetic data

Highlighting the prospectivity at Cummins Range, the recently acquired high-resolution aeromagnetic data defined considerable rare earth oxide potential within the Cummins Range pipe.

Importantly - the data revealed what the company referred to as an excellent correlation between the existing rare earth oxide resource and a central magnetic low.

A number of other magnetic lows with a similar signature are revealed by the new data within the confines of the pipe.

No effective drilling exists over the new targets.


Similar blend to Mt Weld

Where the story gets very interesting for Kimberley Rare Earths is that the resource oxide blend is very similar to Lynas Corporations' (ASX: LYS) Mt Weld.

Another plus for the company is Cummins Range is located in Western Australia, the same as Mt Weld, and therefore will be under the same Australian supported government regulations - and will not suffer the restrictions of other companies operating in foreign countries.


Joint venture with Navigator Resources

Kimberley Rare Earths was spun-off by Navigator Resources (ASX: NAV), with the company acquiring 25% of Cummins Range upon listing via a sale agreement with Navigator.

An additional 30% interest can be earned by Kimberley Rare Earths with the expenditure of A$10 million in exploration over a four year period, with a further 25% interest through the completion of a Bankable Feasibility Study.


Cummins Range strategically positioned

The project is well positioned 120 kilometres by road to the Great Northern Highway running from Broome to Wyndham, and 130 kilometres from Halls Creek and an airstrip.

There are also several operating mines already in the area including Coyote gold, Savannah nickel-copper and Argyle diamond mines


The management

Tim Dobson has a broad base of experience from a range of ASX listed and international mining companies, and spent four years with Placer Dome’s project development team, including roles in Canada and Chile.

Dobson then moved into a lead management role commissioning the first nickel laterite operation in Australia ‐ Centaur Mining’s Cawse operation.

Dobson also brings to the company experience in management and technical challenges of operating complex mineral processing facilities in both PNG and Australia.

 

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Thu, 25 Aug 2011 11:39:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131930/kimberley-rare-earths-eyes-jorc-upgrade-at-cummins-range-18961.html
<![CDATA[News - Kimberley Rare Earths: BGF Equities places SPECULATIVE BUY with A$0.60 price target ]]> http://www.proactiveinvestors.com.au/companies/news/131929/kimberley-rare-earths-bgf-equities-places-speculative-buy-with-a060-price-target-18397.html BGF Equities Research has written a report on Kimberley Rare Earths (ASX: KRE) as it prepares  to commence an extensive exploration program at its Cummins Range  Joint Venture Project.

BGF has recommended Kimberley Rare Earths as a SPECULATIVE BUY and placed a price target of A$0.60 per share.

Company data

Price: $0.165
Market capitalisation: $22m
Cash $17.4m (post-IPO May 2011)

Comments

We expect an increase of the mineralization outline with stepping out drilling targeting extension of the known high-grade zone, as well as an increase in the confidence of the existing REO resource.

Furthermore, KRE is using all possible exploration tools to define additional drill targets.

KRE offers exceptionally good value given that it is selling at cash backing with almost no premium for a JORC compliant rare earth deposit.

We see the KRE shares performing strongly on the basis of superior fundamentals and positive exploration results confirming the quality of the Cummins Range project.

Key Points

1. The 5,700m RC drilling programme is scheduled to:

a. convert part of the inferred REO resource into higher confidence categories;
b. test the extension of the high grade zones to the north west, where grades up to 28% REO have been recorded; and
c. test geophysical anomalies to the east.

2. The Cummins Range project is going to be examined with an extensive range of exploration methods. Geophysical and geochemical methods include:

a. Close-spaced, low altitude, high-resolution aeromagnetic/radiometric survey.Data has been collected, is currently processed and results are expected in the next two weeks. The idea is to try to find additional carbonatite bodies;
b. Close-spaced ground gravimetric survey to commence end of July to define areas of deepest weathering coincident with the highest grade REO mineralization;
c. High-resolution satellite imagery to provide baseline references; and
d. Auger drilling to collect samples over the entire tenement, starting today to define additional drill targets.

3. KRE is well cashed up with $17.4 million following the IPO. KRE has actually the highest cash balance among the rare earths juniors, warranting the earning of 55% of Cummins Range project and providing funding to potential acquisitions.

4. With an enterprise value (EV) of only $4.5m, KRE is undervalued against its peers, despite a substantial REO resource already delineated. This historical resource defined is a starting point and should grow substantially on the back of the drilling program.

5. KRE has attracted two professionals of quality with:

a. Tim Dobson, CEO metallurgist with 23 years of experience, focused on the management and technical challenges of operating complex processing facilities such as the ones from Boddington, Porgera, and Cawse; and
b. Geoff Collis, GM – Exploration, 26 years of experience as an exploration geologist, with a number of discoveries. He was Exploration Manager of Avoca Resources from pre-IPO to the merger resulting in the creation of Alacer Gold (ASX: AQG).

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Fri, 05 Aug 2011 08:55:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131929/kimberley-rare-earths-bgf-equities-places-speculative-buy-with-a060-price-target-18397.html
<![CDATA[News - Kimberley Rare Earths drilling aims to boost Resource at Cummins Range JV project ]]> http://www.proactiveinvestors.com.au/companies/news/131928/kimberley-rare-earths-drilling-aims-to-boost-resource-at-cummins-range-jv-project-17540.html Kimberley Rare Earths (ASX: KRE) has clarified to the market that it has full management and operational rights over the Cummins Range Joint Venture Project and is progressing a high impact exploration program.

The current Reverse circulation (RC) drilling program that commenced this month is aiming to increase the already defined JORC Resource.

Kimberley listed on the Australian Securities Exchange on 18 May 2011, having raised $18.2 million under an oversubscribed IPO. The company was incorporated by Navigator Resources (ASX: NAV), to be a specialist rare earths company.

The JV agreement entitles the company to unencumbered rights to the project through meeting earn in commitments in three stages.

The first stage has been achieved and the company currently has unencumbered ownership of 25% of the project.

Achievement of the second stage is in progress with the commencement of exploration in June.

In addition to the drilling program, high resolution airborne and ground geophysical surveys aim to identify additional exploration targets and a focused auger sample geochemical program will aid exploration target selection.

Kimberley immediately earns unencumbered ownership of an additional 30% equity (to 55%) upon the completion of $10 million exploration spend over within 4 years.

The company then has the ability to earn a further 25% (to 80%) equity in the project through the delivery of a Bankable Feasibility Study.

The Cummins Range Inferred JORC Resource consists of shallow rare earth oxides (REO) mineralisation (4.17 million tonnes at 1.72% TREO at 1% REO cut‐off) occurring within the deeply weathered regolith profile developed above a carbonatite/pyroxenite volcanic diatreme.



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Thu, 30 Jun 2011 16:37:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131928/kimberley-rare-earths-drilling-aims-to-boost-resource-at-cummins-range-jv-project-17540.html
<![CDATA[News - Kimberley Rare Earths in flat ASX debut ]]> http://www.proactiveinvestors.com.au/companies/news/131927/kimberley-rare-earths-in-flat-asx-debut-16406.html Kimberley Rare Earths (ASX: KRE) failed to catch investor attention when the IPO hit the ASX boards yesterday.

Investors in the IPO paid $0.20, with the stock traded in a tight range from $0.175 to $0.215, before closing near the day's lows at $0.185.

Kimberley Rare Earths is a Navigator Resources (ASX: NAV) part spin-off of the Cummins Range rare earths project, effectively de-risking Navigator.

Kimberley Rare Earths is subject to certain conditions, which include acquiring an immediate 25% ownership of Cummins Range from its parent, Navigator.

The newly minted company can then earn an additional 30% interest with expenditure of $10 million in exploration over a four year period, obtaining a 55% interest.

The company will then have the right to earn up to an 80% interest in the project through the completion of a Feasibility Study in bankable form.

Cummins Range contains a near-surface resource, which Kimberley Rare Earths said has the potential advantage of a low waste:ore ratio.

 

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Thu, 19 May 2011 08:33:00 +1000 http://www.proactiveinvestors.com.au/companies/news/131927/kimberley-rare-earths-in-flat-asx-debut-16406.html