Red Mountain Mining Limited (ASX: RMX) has entered into a farm- in agreement with a Liontown Resources Ltd subsidiary to acquire an 80% interest in their Monjebup Rare Earth Project in southern Western Australia.
This is an exciting opportunity for Red Mountain to transact with a globally recognised multi-billion dollar Australian resource company such as Liontown,” Red Mountain chairman, Troy Flannery, said.
“The company looks forward to commencing initial exploration work on the Monjebup grounds, which has previously delivered highly anomolous soil sampling results up to 969ppm total rare earth oxide (TREO).”
The Monjebup Project is located circa 80km north-east of Albany and lies predominantly over private land with efficient road access within and around the Project area.
From a geological standpoint, the Monjebup Project is located in the Albany portion of the Albany Fraser Orogen. The Albany Fraser Orogen extends along the southern and south eastern margin of the Archaen Yilgarn Craton and comprises ortho-gneisses, granites and to a lesser degree sedimentary rocks and remnants of mafic dykes and large sheets of metagabbros, as well as mafic granulites.
Historical sampling by Windward Resources in 2015 identified anomalous Ce, La and Y levels. However, sampling was mainly targeted for nickel-copper-gold and REE potential was not considered at the time.
In early 2022, Liontown applied for the Project tenements with the intention to explore for ionic clay rare earth element potential. Early stage field reconnaissance and surface sampling along publicly accessible roads was completed within the Project area. Highly anomalous REE results were subsequently obtained, including up to 969ppm TREO within E70/6043,
Red Mountain can earn an 80% interest in the Monjebup Project by expending not less than A$500,000 of Exploration Expenditure within the Farm-in Period of 24 months.
