WA government tips in $200k for LNR’s drill program

This morning our rare earths exploration Investment, Lanthanein Resources (ASX:LNR), announced that it has been awarded $200k by the WA government for its current drill program at the Lyons prospect in the Gascoyne region of WA.

The funding is designed to drill test the outer magnetic rim of the carbonatite structures which LNR has modelled.

Below is an image showing the proposed drilling locations:

Any additional government funding is a bonus, and the assays from these two drillholes should be very interesting when they do come in.

Our take on this development:

• These two holes allow LNR to explorer high risk (potentially higher reward targets) - i.e the WA government is providing LNR a “free swing” at Lyons
• These BIG carbonatite targets and are between 2-4km in diameter and go up to 2km deep
• LNR has once again worked with independent consultant Franco Pirajno who is an academic exploration expert. We like that LNR’s drilling program has this additional academic rigour (Pirajno is an expert on ASX-listed rare earth giant Lynas’ Mt Weld carbonatite deposit)

We have set the following expectations for this round of drilling:

Bull case = ~10-20m with rare earth grades of 2-3% (TREO)

Base case = ~5-10m with rare earth grades of 1-2% (TREO)

Bear case = No mineralisation is found

But today’s announcement is an added bonus because this drilling will go 450m deep at these large targets using a combination of diamond and reverse circulation (RC) drilling.

What’s next? First assays from the Gascoyne drilling.