Rare Earths Americas, Inc. (NYSE:REA) dipped Tuesday, on announcing exploration results that strengthen the Company's geological discovery model at its 100%-owned Homer-A project in Brazil's Goiás Alkaline Province.
Multiple independent exploration programs—including airborne magnetics, soil geochemistry, gamma-radiometrics, geological mapping and initial drilling—now consistently support the interpretation of a large alkaline-carbonatite system prospective for rare earth elements (REE) and niobium (Nb).
Initial exploration has defined a >35km² ring-shaped magnetic anomaly exceeding 6.5km along its major axis, while shallow drilling has confirmed rare earth and niobium mineralization across the target area.
Carbonatite-hosted deposits represent a rare geological occurrence and are associated with some of the world's significant rare earth and niobium deposits. Identifying a potential alkaline-carbonatite system is considered an important step in rare earths exploration, as this geological environment is associated with meaningful mineralization potential.
At Homer, multiple independent datasets have returned results consistent with an alkaline-carbonatite system. Each phase of exploration has produced data supportive of this model. The convergence of these datasets supports advancing the project to systematic follow-up drilling.
“It is noteworthy,” to quote this morning’s news release, “that initial auger drilling tested only the upper, chemically weathered portion of a deep weathering profile. Despite sampling this upper weathered horizon, drilling intersected meaningful rare earth and niobium mineralization several holes demonstrated increasing grades with depth, and most terminated in mineralization.”
REA shares waned 21 cents, or 1.6%, to $13.27.
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