The shallow, high-grade resource of 98 million tonnes grading 890 parts per million total rare earth oxide and covers an optimised pit shell of almost 19sq.km, or 5.5km north-south and 7.5km east-west to a depth of 26m.

 

The contained neodymium-praseodymium is put at 21,560t, with a ratio of 25% NdPr to TREO.

 

Contained within 1sq.km of the proposed mining area is a high-grade 13Mt at 1440ppm TREO that could act as a starter pit.

 

The mineralisation remains open to the northwest. 

 

Meeka is undertaking metallurgical trials to better understand the use of ammonium sulphate to recover the ionic clay portion of its deposit and acid for the non-ionic clays.

 

Meeka originally started exploring the 222sq.km Circle Valley project for its gold potential, looking for Tropicana-style deposits such as those seen elsewhere in the Albany-Fraser belt, finding good primary gold intersections at Anomaly A.

 

It quickly recognised REE anomalism and after two years of work has become one of the earliest companies in the Esperance region to get to the inferred resource stage. 

 

Its development plan assumes a simple truck and shovel operation with no need for higher cost comminution and beneficiation, and progressive rehabilitation of the topsoil after areas have been mined out.

 

It also has the much larger Cascade REE project to the west, and its flagship 1.2 million ounce Murchison gold project near Meekatharra where a prefeasibility study is due for a release any day.

 

Meeka shares have traded at 3.2-9.2c over the past year and were up 3% today at 3.6c, capitalising it at $38 million.

 

The company started the quarter with $4.7 million.