Rimfire Pacific Mining (ASX: RIM, 'Rimfire' or 'the Company') is pleased to provide an update on multiple scandium exploration activities currently underway on the Murga and Melrose Scandium Prospects which are located approximately 70 kilometres northwest of Parkes within central NSW on the Company's Fifield and Avondale Projects.
Commenting on the announcement, Rimfire's Managing Director Mr David Hutton said: 'Rimfire is focused on exploring for critical minerals that are associated with global decarbonisation strategies and provides investors with unique exposure to scandium - an extremely valuable metal. Globally, western governments and advanced manufacturers are looking to secure long term supplies of critical minerals such as scandium from stable political jurisdictions, at quantities many times the current annual global production. Rimfire believes its Murga and Melrose Prospects offer significant opportunities in terms of deposit size and grade. We are building strong momentum across our scandium prospects with the completion of the Murga aircore drill program and imminent commencement of the Melrose JORC Resource drilling. With ongoing metallurgical test work and other geological studies, 2024 is shaping up as a pivotal year for Rimfire and its shareholders'.
Murga Scandium Prospect
The Company has completed an air core drilling program at Murga to determine the extent and continuity of scandium mineralisation and 2,185 drill samples have now been submitted to ALS Pty Ltd for multi element analysis with results expected by late April 2024. The new drilling program follows reconnaissance aircore drilling undertaken in 2023 by Rimfire which successfully intersected strongly anomalous scandium in multiple drillholes; Throughout the Murga prospect, scandium occurs within a strongly weathered horizon overlying magnetic ultramafic (pyroxenite) intrusive rocks of the Ordovician-age Murga Intrusive Complex, which have been demonstrated from previous drilling at both Murga and the adjacent Melrose Prospect to be intimately associated with scandium mineralisation. While geological logging is continuing, an initial review of rock types intersected in the latest Murga drilling indicates that approximately 80% of the holes intersected ultramafic / mafic rock types (including pyroxenite).
The significance of this observation will be confirmed once assay results are received however it's worth noting that the FI2429 intercept quoted above occurred wholly within fresh pyroxenite rock types not the overlying weathered horizon. The most recent aircore holes were drilled on 100 x 100 metre centres at Murga North and on 400 x 400 metre centres over the remainder of the Murga Intrusive Complex. The closer-spaced drilling was undertaken at Murga North to specifically follow up the FI2426 to FI2429 intercepts drilled by Rimfire in 2023 (i.e., 18m @ 164ppm Sc from surface in FI2426 including 6m @ 208ppm Sc) which lie within a 1,000-metre x 300-metre east west striking auger anomaly that overlies a linear magnetic feature within the northern portion of the Murga Intrusive Complex ('Murga North'). To assist Rimfire's understanding of the basement rock types at Murga, several samples have been submitted for petrological analysis including two samples of the scandium - anomalous fresh pyroxenite from FI2429
Melrose Scandium Cobalt Prospect
As recently reported, first pass sighter leach test work undertaken by Perth specialist metallurgical services group - Independent Metallurgical Operations Pty Ltd (IMO) and focused on producing a combined product from Melrose laterite-hosted mineralisation, returned recoveries up to 40% scandium, 90% cobalt, and 58% nickel at atmospheric pressures. At the time, Rimfire accepted IMO's recommendation to undertake two further leach tests with a particular emphasis on maximising scandium recovery, optimising energy requirements and reagent consumption. IMO still holds sufficient amounts of the bulk sample originally supplied by Rimfire and will shortly commence the additional leach tests. Rimfire has also submitted 58 samples from historic Rimfire Melrose drillholes to ALS Pty Ltd for qualitative X-ray Diffraction (XRD) analysis. XRD is a technique used to study the structure, composition, and physical properties of materials and will be used to accurately define what specific minerals (e.g. kaolinite, goethite, manganese, limonite etc.) host each of the scandium, cobalt, and nickel at Melrose. Information received from the XRD work will assist ongoing metallurgical studies at Melrose. Following the encouraging metallurgical results Rimfire will now undertake a combined program of Reverse Circulation and Diamond drilling (approximately 2,000 metres) at Melrose to underpin the estimate of a maiden Mineral Resource Estimate (MRE) in accordance with the 2012 JORC Code. Rimfire has received regulatory approval and permission from affected landowners to undertake the drilling with work to commence on the 20th of March 2024.
Scandium Market Significance
For further information (and a downloadable Scandium Fact Sheet), readers are encouraged to visit Rimfire's website https://www.rimfire.com.au/scandium-the-path-to-innovative-solutionsand-sustainable-technologies The recent purchase of the Owendale Scandium Project (which lies 10 kilometres north of Murga and Melrose) by Rio Tinto Ltd.'s newly established scandium business unit Element North 21 (https://www.elementnorth21.com/) for up to $US14M highlights growing market interest in Australian scandium projects. Renamed the 'Burra Project' the acquisition aligns with Rio Tinto's strategic goal to grow in materials essential for the low-carbon transition and as the demand for cleaner, lighter, and more durable materials continues to rise, Rio expect the use of scandium to continue to grow alongwith this demand (https://www.riotinto.com/en/news/releases/2023/rio-tinto-acquires-high-gradescandium-project-in-australia). The global demand for Scandium is increasing with its usage as one of the primary materials in Hydrogen electrolysis solid oxide fuel cell technology as well as being used in the manufacture of lightweight and high-strength scandium - aluminium alloys. Scandium is included in both Australia's 2023 Critical Minerals List and the United States Geological Survey's (USGS) 2022 List of 50 mineral commodities critical to the economy and national security of both countries. (https://www.industry.gov.au/publications/australias-criticalminerals-list and https://www.usgs.gov/news/national-news-release/us-geological-surveyreleases-2022-list-critical-minerals). Incorporation of scandium in materials has environmental benefits across multiple industrial sectors, particularly in decarbonisation of energy. One pathway to mitigate greenhouse gas emissions is to generate electricity using hydrogen or synthetic liquid fuels, which are more efficient than combustion engines. This application currently represents the single largest use for scandium (https://straitsresearch.com/report/scandium-market). A competing demand for scandium (that is increasing) is its usage in the manufacture of highstrength aluminium alloys. When applied as an addition to aluminium alloys, scandium can produce stronger, more corrosion resistant, and more heat tolerant, weldable and 3D printable aluminium products. Aluminium alloys are used extensively in the global transportation industry. Aircraft manufacturers are particularly interested, with the two leading global aircraft manufacturers increasingly working to incorporate scandium aluminium alloys into their future designs and manufacturing processes. Aircraft designers believe use of these alloys can reduce aircraft weights by 15 to 20%. Additionally, the ability to employ weldable structures promises similar cost reduction potential. It's also important to note that the United States is totally dependent on imports of scandium primarily from Europe, China, Japan, and Russia to meet its domestic needs (USGS Scandium Fact Sheet 2022) and as such rising demand for scandium is supply constrained. Rimfire believes that advanced manufacturers are looking to secure long-term supplies of scandium within favourable jurisdictions like Australia before committing to the greater use scandium-alloyed aluminium materials in their products. Rimfire's Fifield and Avondale Projects are ideally positioned to take advantage of the growing demand for scandium and offer significant opportunities both in terms of deposit size and grade.
Contact:
Tel: +61 417 974 843
Competent Persons Declaration
The information in the report to which this statement is attached that relates to Exploration and Resource Results is based on information reviewed and/or compiled by David Hutton who is deemed to be a Competent Person and is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Hutton has over 30 years' experience in the minerals industry and is the Managing Director and CEO of Rimfire Pacific Mining. Mr Hutton has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hutton consents to the inclusion of the matters based on the information in the form and context in which it appears.
Forward looking statements Disclaimer
This document contains 'forward looking statements' as defined or implied in common law and within the meaning of the Corporations Law. Such forward looking statements may include, without limitation, (1) estimates of future capital expenditure; (2) estimates of future cash costs; (3) statements regarding future exploration results and goals. Where the Company or any of its officers or Directors or representatives expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and the Company or its officers or Directors or representatives, believe to have a reasonable basis for implying such an expectation or belief. However, forward looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward looking statements. Such risks include, but are not limited to, commodity price fluctuation, currency fluctuation, political and operational risks, governmental regulations and judicial outcomes, financial markets, and availability of key personnel. The Company does not undertake any obligation to publicly release revisions to any 'forward looking statement'.
RIMFIRE PACIFIC MINING LIMITED 