Galaxy Resources Limited (ASX:GXY) Identifies New Rare Earth Targets at Ponton, Western Australia
Perth, April 4, 2011 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) is pleased to announce it has identified potential new exploration target areas at its 100%-owned Ponton Rare Earths Project (Ponton project), which lies 200km east of Kalgoorlie in the eastern Goldfields region of Western Australia.
A review and subsequent interpretation of recently purchased historic remote sensing data suggest the anomaly is significantly larger than the area previously tested. Consequently, Galaxy has now identified potential exploration targets to the north and west of the previous drill area.
Galaxy Resources Managing Director Iggy Tan said: "The original targets show very strong radiometric signatures which suggest that the Ponton project area could be much larger than we initially contemplated."
The latest results are part of a previously-announced review of historical drilling at the Ponton project.
Most of the original data was collected in 1993 by previous owners Herald Resources Limited (Herald) during an exploration program. Galaxy has recently purchased original grids of the detailed Herald aeromagnetic-radiometric survey, in addition to government data from a 400m line-spaced East Yilgarn aeromagnetic-radiometric survey.
The company has also purchased recent aerial photography and digital elevation model (DEM) data from Landgate. Data from Herald and the Government were processed and merged across the Ponton project area by geophysics group Southern Geoscience Consultants.
Galaxy's Ponton project is located, 70km north of the Trans-Australian railway line. It comprises a single Exploration Licence Application (E28/1317) covering 206 km2. Results from the Herald drilling were reported in an ASX release dated 11/01/11, and include 16m @ 14.48%, 28m @ 10.50% (including 6m @ 20.57%) and 26m @ 6.99% from surface (including 8m @ 13.12%) rare earth oxides (REO).
The Ponton Project ELA lies on a Class A nature reserve and the Company is currently in discussions with the Western Australian Government to progress the grant of the tenement application. There is no guarantee that the tenement application will be granted by the WA Government. If the tenements are granted, the Company plans to embark on a drilling program targeting the newly identified exploration areas.
Rare Earth Elements
Rare earth elements include the fifteen lanthanides, in addition to scandium and yttrium (which have similar chemical properties and tend to occur in the same geological environment). While relatively common in the earth's crust, rare earth elements (REEs) are difficult to find and process in economic quantities. REEs have a wide range of uses in advanced technologies, including superconductors, magnets and catalysts. Their application in environmentally-friendly technologies including low-emission electric and hybrid vehicles has seen a rapid growth in demand. China, which supplies over 90% of the world's REE market, has in recent years reduced REE export quotas. In late 2010, the Chinese Ministry of Commerce announced a 35% reduction in the export quota for the first half of 2011, compared to the corresponding period in 2010.
For the complete Galaxy announcement including figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/535934.pdf
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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