The Mitre Hill Project covers five exploration licence applications over ground located within the Murray Basin across Victoria and South Australia, totalling a significant package of 1,380km2

On 27 September 2021, the Company announced it had entered a binding term sheet for the acquisition of the Mitre Hill Project (1380km2), which contains five strategic tenement applications over ground located within the Murray Basin across Victoria and South Australia, prospective for ionic clay hosted Rare Earth Element (REE) deposits.

The Applications are located in the Murray Basin on the South Australian and Victorian state Border near the towns of Naracoorte, Penola and Edenhope. The largest and most prospective Application, ELA 2021/00059, runs approximately in a line, covering over 40km of strike length, from the towns of Naracoorte and Penola in South Australia. The main economic target is ionic clay hosted Rare Earth deposits, with possible economic concentrations of Heavy Rare Earths considered strategically important given global supply modelling.

The Applications are located over the transition from the concluding phases of the Loxton – Parilla strandlines to the more broadly spaced Bridgewater formation in South Australia and Victoria. A significant archive of historical exploration data has been acquired by the Company, including drilling results, numerous government studies and minor private exploration.

The applications comprise one Exploration Licence Application in South Australia (ELA 2021/00059) and four Exploration Licence Applications in Victoria (EL7641, EL7647, EL7646 and EL7640) (together the Applications). The Applications are located on either side of Australian Rare Earths’ (ASX:AR3) (AR3) Red Tail and Yellow Tail deposits with a JORC 2012 Inferred Mineral Resource of 39.9Mt @ 725ppm Total Rare Earth Oxide (TREO)1,2.

The Murray Basin extends over 300,000km2 predominated by Cainozoic sediments. In the Mallee Region in the West, the Murray Basin Cainozoic Loxton Parilla sands are concealed beneath semi-arid landscape of quaternary dune fields. The tenement areas in both South Australia and Victoria occur in the Western margin of the Murray Basin.

1 Refer to Australian Rare Earths Limited Prospectus dated 7 May 2021.
2 These results do not guarantee the same or similar levels of success on the Mitre Hill Project tenements

Figure 1: Mitre Hill Project Location Map

Figure 2: Mitre Hill Project Application locations surrounding the Red Tail and Yellow Tail deposits (ASX:AR3)

Location and Geology

The Applications comprising the Mitre Hill Project are located in the Murray Basin on the South Australian and Victorian state Border near the towns of Naracoorte, Penola and Edenhope. The Application, ELA 2021/00059, runs approximately in a line, covering over 40km of strike length, from the towns of Naracoorte and Penola in South Australia. The two Victorian applications closest to AR3’s Yellow Tail and Red Tail mineralisation offer prospective opportunities for early geological works. The main economic target is ionic clay hosted REE mineralisation, with possible economic concentrations of Heavy Rare Earths considered strategically important given global supply modelling.

The Applications are located over the transition from the concluding phases of the Loxton – Parilla strandlines to the more broadly spaced Bridgewater formation in South Australia and Victoria. A significant archive of historical exploration data has been acquired by the Company, including drilling results, numerous government studies and minor private exploration.

REE deposits are known to occur at the bottom of a shallow clay layer, on the top of basement (in this case the Gambier Limestone).

Figure 3: Tenement map of Mitre Hill Project with ASX:AR3 and ASX:FNT tenements

Proposed Exploration at the Mitre Hill Project

On completion of the proposed acquisition, and following grant of the Applications, the Company plans to complete the following exploration activities:

  • Establish a geological database utilising all available historical exploration data;
  • Surface sampling and field mapping to assist drill targeting;
  • Undertake drilling utilising methods including auger, air core and push tube to test extent of potential ionic clay hosted REE mineralisation
  • Metallurgical and mineralogical test work