Enova Mining continues to build on its recent Brazilian rare earth element (REE) strategy by entering into a binding option agreement to acquire the large prospective CODA ionic absorption clay (IAC) exploration tenements.
Managing director Eric Vesel says historic, highly impressive exploration drilling results confirm the potential for REE-enriched IAC in two of the CODA tenements and the likelihood of similar exploration success in the remaining tenement areas.
“This opportunity has emerged as a result of Enova’s recent exploration activity in the highly prospective mineral rich state of Minas Gerais,” Mr Vesel said.
“The tenements under consideration offer Enova access to a new region of IAC potential.”
Enova believes this is the most advanced exploration land package it has considered so far in Brazil and once satisfied with findings from current due diligence, the company will seek shareholder approval to proceed with acquisition.
“We expect the due diligence will confirm that the southern CODA tenements are potentially ‘walk-up’ drill targets which will quickly evolve [in]to a resource drilling campaign within several months of acquisition.”
“Enova has already established a network of local expertise and support that will provide good grounding to operate in this progressive mining state.”
“This potential expansion of Enova’s REE IAC land holdings builds on an already exciting and prosperous future ahead.”
Enova has engaged an expert to undertake the due diligence review of the tenements.
Any decision on further expenditure on the tenements will be subject to results of the due diligence and investigative work beyond that should Enova choose to exercise the option to acquire them.
Poços de Caldas acquisition
In early January, Enova committed to proceed with the acquisition of Poços de Caldas REE and lithium valley tenements in Brazil after due diligence de-risked the project opportunity.
The due diligence discovered considerable outcrops of saprolite clay within the project areas, situated in Brazil’s prolific Poços de Caldas / Caldera alkaline complex.
It also identified numerous pegmatite outcrops in a number of tenement regions.
Earlier this month, Enova’s maiden exploration program in the Poços REE project uncovered a large-scale surface saprolite system.
IAC potential
The company says the presence of saprolite clay at the surface satisfies one of the criteria for the potential presence of an IAC-style deposit at Poços.
The company’s geologists now believe the areas of saprolite clays are suitable to commence shallow drill sampling and assay.
The maiden phase 1 program will include drilling vertical holes using a man-portable auger drill in prospective areas.
China has been mining ionic clay rare earth resources for many years, where they are the cheapest and most accessible source of heavy rare earths.
They are also considered the most valuable.
