Orion Metals (ASX: ORM) associate Ultimate Resources is withdrawing from two rare earth element projects that it was acquiring in South Korea.
Ultimate said the current period of sustained lower global commodity prices and demand for resources has been instrumental in the decision to withdraw from the Eorae San and Hongchon South projects.
It has previously agreed to acquire the projects through a series of payments, which were scheduled for completion in January 2014.
Orion continues to explore for rare earth element within the Broughton Creek Project in Northwest Queensland and Killi Killi Project in Western Australia.
Detailed geological mapping of a significant quartz breccia shear zone has been carried out at Killi Killi and a reverse circulation drilling program is being planned to test the shear zone at the predicted intersection of the shear zone with the contact between the Killi Killi Beds and the overlying Gardiner Sandstone.
The company is also planning to carry out a shallow reverse circulation drilling program at Broughton Creek to test the coincident radiometric and rock chip anomalous zones, to determine the nature and extent of the mineralisation in this region.
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