Gold Mountain steps up exploration efforts after further high-grade REE strikes in Brazil

Gold Mountain (ASX: GMN) has continued its dramatic week of exploration success in Brazil with the receipt of further high-grade assays from its Down Under rare earth elements (REE) project.

Assays from a second batch of 85 stream sediment samples from the Irajuba tenements in the Down Under project area have returned grades as high as 4,582 parts per million total rare earth oxide (TREO).

Earlier in the week, Gold Mountain reported having defined an initial 3,220m of high-priority auger REE drill targets at the Down Under project after confirming key pathfinders for ultra-high-grade REE.

Ore grades

Managing director David Evans said the latest very high-grade results compare very favourably with geochemical samples released previously.

“We are finding what would normally be considered ore grades in our recent stream sediment samples, which is very encouraging and suggests we may be close to identifying a source with ultra-high grades.”

He also noted that Gold Mountain is targeting similar multi-commodity, ultra-high-grade REE and niobium to nearby tenements owned by Brazilian Rare Earths (ASX: BRE), which have grades of up to 40.5% TREO.

Stepped-up workload

Gold Mountain has ordered a second auger rig and the company is sourcing permits for drilling in Down Under’s Irajuba area.

The company has identified specific drill sites to target known, well-preserved lateritic weathering areas.

It also plans to undertake extensive radiometric traversing within the most highly anomalous catchments to search for potential ultra-high-grade hard rock deposits, while a program of stream sediment pan concentrate sampling will also be undertaken.

“There is outstanding potential for new ultra-high-grade rare earth discoveries along the geological and structural trends that host this world-class province,” Mr Evans said.

“The success of this ongoing first phase of greenfield exploration is very encouraging to GMN, with more results expected in the following weeks.”

Dual success

Sandwiched between the Down Under announcements, the company revealed it had obtained promising copper and lithium samples from the Iguatu project in Brazil.

Testing of an initial batch of 231 stream sediment samples in the central and eastern part of the Iguatu and Iguatu north tenements has identified widespread anomalies in a suite of elements that the company says is indicative of Olympic Dam-style post-tectonic IOCG-style mineralisation.