Meeka hits high-value rare earths, scandium at Circle Valley. Drilling starts in early 2023

Meeka Metals’ (ASX:MEK) share price has jumped 7% in the first hour of trade as the company reveals multiple hits of high grade rare earth mineralisation at its southwest WA Circle Valley in assay results finishing off recent drilling. 

Worth noting is that of the total rare earth element (REE) mineralisation found, up to 31% of total mineralisation is high-value Neodymiun-Praseodymium (NdPr) magnetic material. 

NdPr prices have been rising for a decade and continued to remain robust through the first two years of covid. 

The price rise is due to the metals' inclusion in EV batteries and, what may be lesser known on household investing radars, wind turbines. Over 600kg of rare earth elements are needed for each wind turbine brought online. 

Scandium, gold also present 

In addition to confirming the presence of dense NdPr mineralisation, Meeka also today reports high-grade scandium being found in assay results at fairly shallow depths. 

Back in June, Meeka noted Scandium oxide was trading at USD$1000/kg. It’s worth noting that’s a kilogram, as opposed to a tonne, making a tonne of scandium worth $1.49m in Australian currency. 

Also worth noting is that gold has been found at Circle Valley, alongside REEs and scandium. 

In late June this year, Meeka also reminded investors that Circle Valley is a polymetals project. Case in point, drillers on-site found shallow mid-grade gold.

Drilling to target northwest trend early 2023 

“This shallow high-grade mineralisation appears to trend northwest into an undrilled part of Circle Valley, a focus for [JORC] drilling in early 2023,” Meeka Metals MD Tim Davidson said. 

“Delivery of an initial resource remains on track for the June 2023 quarter…we are also working to establish methods to upgrade metallurgical testwork prior to recovery and to optimise the recovery conditions.” 

“Results continue to show a shallowing cover profile to the northwest.” 

A look at Meeka Metals' three month charts

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Meeka Metals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.