Spark Energy Minerals reports 52m rare-earth intersection at Cruzeta

Spark Energy Minerals Inc. CNSXSPRK OTCMKTSSPARF FRA8PC, a Canadian Securities Exchange-listed explorer, reported 52 metres at 1,906 parts per million total rare-earth oxides from surface at Brazil's Cruzeta target on Wednesday. The interval includes 6 metres at 3,740 parts per million.

The Oct. 28 release reports nine reverse circulation holes at Spark's wholly owned Arapaima project in Minas Gerais. Eight tested Cruzeta, while the remaining hole was the first reported from the Domingos Gonçalves target.

Spark's Canadian shares CNSXSPRK closed at C$0.03 on Oct. 27, according to Google Finance's reading at 4 p.m. EDT. That price predates the assay announcement.

Arapaima has no estimated mineral resource or reserve, completed economic study or demonstrated metallurgical recovery, according to the release. The assays measure elements in the ground; they do not establish how much can be recovered for sale. Spark says its objectives are a mineral resource estimate and an economic study, subject to available capital.

Eight Cruzeta Holes Ended In Mineralization

The headline intersection came from hole ARA-RC-036, with its higher-grade included interval starting at a depth of 12 metres. The reported intervals are down-hole lengths from vertical drilling, and true widths are unknown.

Hole ARA-RC-035 returned 76 metres at 1,385 parts per million total rare-earth oxides, also from surface. Across the eight Cruzeta holes, 282 metres of the 362 metres drilled fell within the main reported intervals.

Those intervals use a reporting threshold of 500 parts per million total rare-earth oxides. Spark says that threshold is not an economic cut-off grade.

All eight Cruzeta holes ended in mineralization. Their final samples graded between 580 and 1,432 parts per million, so those holes did not locate the lower limit of mineralization.

The holes sit inside the footprint reported on July 22, measuring approximately 4.4 kilometres by 1.5 kilometres. They were drilled between 146 metres and 312 metres from the nearest neighbouring Cruzeta hole, so continuity between those locations still needs testing.

Magnet rare-earth oxides accounted for 20.3 per cent to 23.3 per cent of total rare-earth oxides across the main intervals, Spark reported. Its magnet category comprises neodymium, praseodymium, dysprosium and terbium.

Recovery And Funding Remain Development Tests

Spark also reported gallium oxide from surface, including 14 metres at 67 grams per tonne in hole ARA-RC-042. As with the rare-earth assays, that concentration does not establish a recoverable product or revenue.

A separate rare-earth developer, Critica Limited ASXCRI, estimated pre-production capital of approximately A$556 million for its Jupiter project in an Oct. 20 scoping study. Critica said it had not secured the funding required for development.

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"Our objective is to take Arapaima from discovery toward a mineral resource estimate and an economic study as quickly as capital allows," chairman and chief executive Fernando Tallarico said in Spark's release.

For Cruzeta, further drilling would need to establish continuity between tested locations, while metallurgical work would need to establish recoverable yields. Tallarico tied progress toward a resource estimate and economic study to available capital.