Alkane has given back the RareX-owned Orange East gold project to focus its attention on its highly prospective discoveries at the Boda copper-gold deposit in New South Wales.
The company has returned the tenement to RareX under the terms of the farm-in agreement signed in 2015.
The Orange East gold project is located in the Blayney-Kings Plain district of Central West New South Wales, only 15 kilometres away from McPhillamys gold project, which is owned by Regis and is estimated to have 2 million ounces (Moz) of gold reserve.
Earlier in March, Alkane confirmed a “significant discovery” of a large and high-grade zone of gold and copper mineralisation at the Boda prospect within its Northern Molong porphyry project in New South Wales, which returned grades of 0.55 grams per tonne of gold and 0.25 per cent copper.
RareX said Alkane was in the process of negotiating a final access agreement with land-holders prior to the Boda discovery, but decided to return the tenement to RareX after the major discovery.
RareX said the project was prospective for high-grade copper gold mineralisations, with an initial geological review identifying several advanced prospects.
With the project currently untested by modern exploration, RareX said the tenement had geological and geochemical similarities to the McPhillamys deposit.
RareX is now compiling all previous exploration data and said it will update the market on its proposed exploration plan for the project.
RareX is an ASX-listed specialist company focussed on developing rare tarths deposits in Australia, including Cummins Range rare earths project in the East Kimberly region of Western Australia.
RareX also has a 35 per cent interest in the Trundle project, located in the Macquarie Arc of the Lachlan Fold Belt in central west New South Wales, where it is currently conducting a drilling program with Canadian joint venture partner Kincora Copper.
In addition to its 35 per cent stake in the project, RareX also holds 9.9 per cent stake in Kincora Copper.
RareX said the drilling program at Trundle project was ongoing and will take approximately top to three months to complete.