Chase Mining applies for permits in northwest Quee...

Chase Mining Corporation Ltd (ASX:CML) has applied for three uncontested 100 sub-block exploration permits (EPMs) in grazing country in the Boulia-Duchess area of northwest Queensland.

Two project areas are under application, both in localities known for high-value rare earths, along with copper, nickel, cobalt, lead and zinc anomalism, as reported following previous surface exploration.

The areas have implied strike lengths of greater than 10 kilometres, and the source of the surface anomalies and rare earth element (REE) mineralisation seems to be geologically young – representing a potential new REE mineral province.

Two of the EPM applications are in the Boulia Project area, while the other is part of the Digby Peaks Project.

The Boulia Project area is subject to two EPM applications – Canary (EPMA 28251) and Prickly Bush (EPMA 28253).

Previous exploration in this area by Jacaranda Minerals Ltd mainly targeted uranium. Later, Hartz Rare Earths Pty Ltd conducted wide-spaced stream sediment sampling that identified catchments strongly anomalous in rare earths and, to a lesser extent, copper-nickel, cobalt, lead and zinc.

These anomalous catchments, when contoured according to metal contents, reveal a distribution along northwest striking shear structures in the Cretaceous age sediments of the Toolebuc and Allaru formations.

The maximum anomalism – 732 ppm total rare earths, including 190 ppm neodymium – is from a large catchment within the CML applications. This anomalism has not been closed off to the northwest, where there are magnetic structures of the same orientation, which are possibly carbonatite dykes and the source of the surface concentrations of rare earth mineralisation.

As the host sediments are Cretaceous in age, the shear zones, alteration and mineralisation are very young, most likely Tertiary, and appear to be controlled by dilation faults splaying from the Burke River fault zone.

If the company is correct in its hypothesis, this represents a new age and style of rare earths deposition in Australia.

CML chose this project area because there are known but poorly defined rare earths in the general locality outside the application, and because of the similar geochemistry and geology to the new Boulia Project area further south along the Burke River fault zone.

The Digby Peaks mineral occurrence was sparsely sampled by CRA in 1977. The Queensland Government geochemical database reveals that CRA located drainages and rocks anomalous in nickel-copper, cobalt, lead and zinc. Rock samples from sheared brecciated carbonate sediments assayed up to 0.48% nickel.

This unusual geochemical signature is similar to the Boulia Project’s. Digby Peaks lies along the western margin of the Tertiary age Burke River fault, as does the Boulia Project.

CML’s thesis is that the Digby Peaks base metal occurrence, like the Boulia Project, is also a focus for shear hosted rare earth mineralisation.

Project timings will be subject to the company securing Native Title and heritage agreements, which are required prior to grant.

Once the applications have been successful, the proposed work program will consist of stream sediment, soil and rock sampling designed to define the rare earth and base metal structures prior to trenching and drilling.