RareX board restructure to streamline operations and reduce costs as exploration at exciting niobium prospect begins
CEO James Durrant promoted to MD as RareX assesses Cummins Range development and new Khaleesi niobium acquisition in WA
Khaleesi previously explored for gold and copper despite abundant niobium and rare earths potential
Special Report: Like Daenerys Targaryen, mining executive James Durrant has ascended to the throne at rare earths and critical minerals explorer RareX, promoted from CEO to managing director in a board restructure that will propel the junior into its next phase of life.
And the throne will not be made of iron but, RareX (ASX:REE) hopes, the far more valuable commodity of niobium (though we note the prospectivity of this project for other valuable and critical metals too).
Already well advanced with one of Australia’s most promising rare earths and phosphate developments at its Cummins Range in WA’s East Kimberley, RareX has put its foot on the Khaleesi and Red Dragon projects east of Kalgoorlie.
The 65,000m of historical data acquired by mining giants AngloGold and IGO (ASX:IGO) in the hunt for what became the Tropicana gold mine is being compiled again by RareX, demonstrating similar gravity and magnetic signatures to the Luni niobium discovery made in the West Arunta region to the north by ASX bolter WA1 Resources (ASX:WA1).
Over at Cummins Range RareX recently completed baseline environmental studies in a key step towards the delivery of a pre-feasibility study, that is the second of three major studies typically completed by a mining company before it can approve a new development.
While rare earths prices are at a lower point of the cycle right now, Cummins Range is among the best placed projects in Australia being prepared for when supply deficits emerge later this decade.
It contains a mammoth 524Mt at 0.31% total rare earths oxides with higher value NdPr making up 22% of the TREO or 353,000t of neodymium and praseodymium oxide, with the 4.6% P2O5 grade providing the added bonus of a high value product for the LFP battery market (or fertiliser markets).
Board reshuffle retools RareX for success
With RareX refining its development approach at Cummins Range and acquiring the enticing Khaleesi, the board reshuffle will focus RareX in on its updated strategy.
Durrant’s promotion to the board as managing director will also see a slimmer structure with John Young and Cameron Henry resigning to focus on business activities elsewhere.
Jeremy Robinson retains his non-executive chairman title, with Shaun Hardcastle and Danny Goeman continuing as non-executive directors in a move that will reduce corporate overheads and streamline decision making.
“It (is) important for us to evolve with the macro environment and the Company portfolio. I would like to thank John and Cameron for their support and guidance and wish them well in their future endeavours,” Robinson said.
“We are grateful for their respective contributions to the Company over a significant period of time.
“I would also like to congratulate James Durrant, who will now serve the Company in his new role as Managing Director following his dedicated leadership as CEO over the last year.
“RareX is in an exciting position and poised for growth with exploration ramping up at our new Khaleesi Niobium Project, low-cost work progressing at Cummins Range to secure potential off-take partners and business development activities in full swing.
“The restructured board will help us to be more agile as these business streams pick up pace whilst managing overheads appropriately.”
Data review shines bright light on Khaleesi
Khaleesi – the chiefly title (and Mother of Dragons) assumed by Daenarys Targaryen in George R.R. Martin’s legendary fantasy Game of Thrones, if you missed the reference – has already been shown to be more than just an eye-catching name.
Niobium results across the 966km2 project, picked up by REE in May, included niobium assays in fresh rock that came in at up to 30 times the background value of 20ppm in multiple places and up to 1000ppm.
The project is along strike from the Ponton Dyke, a prospect which contains some of the best rare earths intercepts seen in Australia, as well as the massive carbonatite pipe at Cundeelee.
But the ground was passed over by Anglo, IGO and even Fortescue (ASX:FMG) despite the majors confirming niobium and other similar minerals in 4-acid digest assays because they were scanning for specific criteria in other metals like gold and nickel.
That presents an enormous opportunity and huge leg-up for REE, which is able to retest samples assayed for gold and other metals in the hope of making a niobium and rare earths find akin to WA1’s company-making Luni.
That discovery has brought the critical mineral into sharp focus, with Australian players now confident of being able to break a virtual market monopoly held by a single major producer in Brazil.
This article was developed in collaboration with RareX, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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