Another SA prospect reveals rare earths potential for iTech Minerals

Adelaide-based iTech Minerals (ASX: ITM) says it has identified “significant” potential for rare earth elements (REE) within its Franklyn kaolin-halloysite prospect on South Australia’s Nackara Arc, west of Port Pirie.

This adds strength to the company’s plans to become a low-cost REE producer.

“The addition of the Franklyn kaolin-halloysite-REE prospect to the pipeline of kaolin hosted REE projects strengthens the company’s vision for the future,” iTech notes in its latest release.

Significant shallow intersections from Franklyn were 19m at 631 parts per million total rare earth oxides (TREO), including 4m at 1,031ppm. 

Another hole returned 12m at 960ppm (including 4m at 1,505ppm) and a third hole assayed over 7m at 995ppm (including 3m at 1,287ppm)

Adds to building REE story across on Eyre Peninsula

A week ago, iTech reported that its Caralue Bluff project across Spencer Gulf on Eyre Peninsula had produced more thick and high-grade drill results.

Caralue Bluff is being tested for ion adsorption clay REE and high purity kaolin.

Those latest results included 12m at 2,343ppm TREO and 17m at 1,774ppm TREO.

Caralue Bluff was initially established as a high purity kaolin prospect after the identification of thick intervals of bright white kaolin, close to surface in several historical drill holes.

However, during the maiden drilling program iTech geologists noted that the weathering profile was similar to that the Ethiopia, Bartels and Burtons prospects, where elevated REE were known to occur. 

iTech applied Caralue Bluff model to Franklyn — and found the REE

Success at Franklyn follows a decision to apply its exploration model from Caralue Bluff to Franklyn — that is, looking for clay-hosted REE within high purity kaolin mineralisation. 

While Eyre Peninsula, and the Caralue Bluff prospect, continue to be the focus of exploration for clay hosted REE deposits, the company says the discovery of REE mineralisation at Franklyn expand its pipeline of projects with known halloysite occurrences.

Ionic clay hosted rare earths are a quite different proposition to extracting the rare earth elements from hard rock deposits — these clay deposits are shallow, require negligible blasting, there is no crushing or milling involved, and no radioactive tailings to deal with.

Moreover, the right clays contain all the four key elements for magnets: neodymium, praseodymium, dysprosium and terbium.