Exploration Licence Granted at Murraydium Rare Earth Project

Our rare earths exploration investment, Frontier Resources (ASX:FNT), announced this week that they were granted an exploration licence in South Australia.

While not one of our Key Objectives in our FNT Investment Memo, we think FNT’s exploration licence in South Australia could benefit the company down the track.

The licence is located near to the Koppamurra Project which is owned by $78M capped Australian Rare Earths.

That project has an Inferred Mineral Resource of 39.9 Mt @ 725 ppm Total Rare Earth Oxide (TREO).

Below is a map showing how FNT’s new rare earths project (brown) is located relative to Australian Rare Earths’ projects (green):

We think this licence is similar in approach to FNT’s WA rare earths project - snap up tenements near existing deposits of rare earths in an emerging rare earths district.

But instead of ironstone hosted rare earths, FNT will be looking for closer to surface ionic clay hosted rare earths.

FNT flagged that they will look to use auger, push tube and aircore drilling.

What’s next for FNT: The big one for us as investors, the 65 hole, 5,000m drilling program at their WA rare earths project. The program is scheduled to begin later this month/early May.