Anglo Australian and RareX added to Canaccord’s ‘Exploration Watch List’
Gold explorer Anglo Australian Resources (ASX: AAR) and rare earths developer-cum NSW porphyry exploration leverage story RareX (ASX: REE) are both new additions to Canaccord Genuity’s latest watch list
24th July 2020
Resources Rising Stars
Gold explorer Anglo Australian Resources (ASX: AAR) and rare earths developer-cum NSW porphyry exploration leverage story RareX (ASX: REE) are both new additions to Canaccord Genuity’s latest (July 2020) incarnation of its widely-followed Exploration Watch List.
Canaccord says the list is designed to “highlight speculative, unrated companies of interest that are involved in active exploration and/or development of gold and base metal projects”.
The list, last published in February 2020, already includes the likes of Auteco Minerals (ASX: AUT), Calidus Resources (ASX: CAI), Stavely Minerals (ASX: SVY), De Grey Mining (ASX: DEG) and Rox Resources (ASX: RXL).
Turning first to Anglo Australian, Canaccord analyst Tim McCormack says the company is a gold-focused explorer with holdings over five projects in WA – with the focus being on its emerging discovery at the Mandilla gold project just south of Kalgoorlie.
McCormack says Anglo acquired Mandilla from Gold Fields back in 2003 and subsequently mined 23koz at 7.5g/t between 2006 and 2007.
“The project re-emerged as a new discovery in February 2020 following an RC drilling program that was designed to in-fill the core of the historic Resource area and test the zone along strike and to the north,” he said.
“A total of 9km of drilling has been completed, which more than doubled the size of the mineralised footprint, which remains open to the north and south.”
He says the company plans to complete a further 13km of drilling this year, to in-fill the main zone and test northern and southern extensions.
Some of the results generated from the drilling have included hits like 26m at 8.28g/t from 76m, 21m at 3.7g/t from 35m, 45m at 2.33/t from 82m and 21m at 2.39g/t from 85m.
Anglo Australian, which was featured in last week’s FitzGerald column (part of this newsletter), is expected to post a maiden Mineral Resource estimate for Mandilla sometime later this year.
The company is in the midst of a major Reverse Circulation and diamond drilling program, with more assay results expected over the coming weeks.
Meanwhile, McCormack says RareX (ASX: REE) offers exposure to two main projects – the Cummins Range rare earths project located in the Kimberley region of WA and a 35% free-carried interest in the Trundle porphyry copper-gold project in NSW.
In recent times, it has been the Trundle Project, which is joint ventured with highly credentialed TSX-V listed porphyry hunter Kincora Copper (TSX: KCC) which has captured the attention of the market.
Kincora has acquired a 65% interest and is sole funding a major drilling campaign targeting a major porphyry discovery.
The first diamond hole at the Trundle Park prospect intersected two strong mineralised zones, including an upper skarn intercept of 51m at 1.17g/t Au and 0.54% Cu.
“Assays from initial drilling at the Mordialloc target are expected within two weeks,” McCormack wrote.
“REE has reported significant intervals with visually interpreted localised moderate copper grade and inner propylitic zone alteration,” he said.
“A total of six holes are being drilled as part of the initial program, with a third target called Bayleys also expected to be tested (porphyry target).”
Canaccord also notes that a 6,000m RC drill program is scheduled to begin in late July at RareX’s 100%-owned Cummins Range rare earths project in WA, aimed at increasing the Resource size and grade, increase the confidence level and provide samples for metallurgical test work.
The project hosts an Inferred Resource of 13Mt at 1.13% TREO with a NdPr content of 22.1%.
The deposit is a weathered carbonatite within mineralogy dominated by monazite.
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