RareX (ASX:REE) has entered into a strategic agreement with True Fella for the Piper Project, located in the Aileron Province, Northern Territory.
The project encompasses a 2.5km wide bullseye magnetic anomaly, identified as a carbonatite pipe target, promising potential for rare earth elements and niobium mineralisation.
The Piper Project is characterised by geological features similar to RareX's Cummins Range carbonatite in Western Australia and is expected to serve as a high-priority drill target.
The project lies within a province known for its mineralised alkaline magmatism related to mantle hotspots, illustrating its geological fertility for REE and Nb exploration.
Managing Director James Durrant said, "We are very pleased to establish a deal with True Fella to explore the Piper Project. We believe this project has high potential to be a niobium-rare earths carbonatite pipe."
"The deal is structured to make sure the exploration dollars go into the ground and RareX is looking forward to testing True Fella’s geophysical carbonatite target model," Durrant added.
The agreement includes a five-year earn-in period where RareX will drill at least three 300m deep holes, totalling a minimum of 1,000m, to gain 80% interest in the project.
RareX will solely fund the project's development up to the decision to mine, after which True Fella can opt to retain their interest or accept a 1% net smelter royalty for a reduced stake.
Located 320km northwest of Alice Springs and amidst highly prospective terrain, the Piper Project adds to RareX's robust portfolio, which includes the flagship Cummins Range and Khaleesi projects.
RareX aims to commence drilling in 2025, following a heritage land access agreement negotiation.