Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has completed the phase five drill program progressing the development at its 60% owned Makuutu Heavy Rare Earths Project through local Ugandan operating entity Rwenzori Rare Metals Ltd (RRM).
The company drilled 128 holes over 2,501 metres during the infill drilling campaign on retention licence (RL) 00007.
Completion of the program is an important step in advancing the next stages of development at Makuutu for a much larger project.
Makuutu phase five drill plan, with completed RAB holes (shown in green) and recently completed core drilling (black) shown in RL00007.
The Makuutu Project is well-supported by existing tier-one infrastructure and is on track to become a long-life, low Capex, scalable and sustainable supplier of high-value magnet and heavy rare earths oxides (REO).
A positive stage one definitive feasibility study (DFS) was reported in March for the first of six tenements to progress to a mining licence application (MLA) which is pending in Uganda. The Makuutu DFS defined a 35-year life initial project producing a 71% rich magnet and heavy rare earth carbonate (MREC) product basket and the potential for significant potential and scale up through additional tenements.
Makuutu’s basket contains 71% magnet and heavy rare earths content, and is one of the most advanced heavy rare earth projects globally available as a source for new supply chains emerging across Europe, the US, and Asia.
Increasing confidence
Drilling is expected to increase confidence and scale of the updated mineral resource estimate (MRE), which is expected in the first quarter of 2024.
“The infill drilling has progressed to plan and we await assays, expected over the remainder of 2023, to feed into a significant increase in confidence on the MRE associated with RL00007 which will support our next Mining Licence Application at Makuutu,” managing director Tim Harrison said.
Makuutu Rare Earth Project Resource Tabulation of REO Reporting Groups at 200ppm TREO-CeO2 Cut-off Grade (ASX: May 3, 2022).
Mineral Resources by Area (ASX: May 3, 2022), RL00007 Resource Areas shaded blue.
Samples are being delivered to Perth for analysis, with first results expected this quarter. “We await the results of the metallurgical test work on samples selected from the recent RAB drilling as part of this Phase 5 drill program which will enable revision to the Exploration target aimed for late this quarter, and also assist the company plan future drilling across both EL00147 and EL00257.
“Our focus on the delivery of the Makuutu Heavy Rare Earths Project in Uganda positions us to provide a secure, sustainable, and traceable supply of magnet rare earth oxides. Along with our Ionic Technologies Belfast recycling facility, Makuutu is key to us harnessing our technology to accelerate mining, refining, and recycling of magnets and heavy rare earths that are critical for the energy transition, advanced manufacturing, and defence.”
First mover advantage
In September 2023, Ionic Technologies secured support from the UK government to establish partnerships aimed at building a domestic UK supply chain for recycled rare earth oxides (REOs) to metals, alloys, and magnets. These developments will primarily support UK-based electric vehicle (EV) manufacturing, with plans to expand into other pivotal markets. This follows the firm's June 2023 announcement of initial production of high-purity magnet REOs at its newly operational Demonstration Plant, thereby gaining a first-mover advantage in extracting rare earth elements (REEs) through recycling.
Simultaneously, as part of a broader, integrated strategy, IonicRE is considering the development of its own magnet and heavy rare earth refinery. This potential hub would further refine its Makuutu basket — a high-value mix of magnet and heavy rare earths — into a full range of REOs, including scandium. This strategy aims to close the loop on a circular economy for sustainable and traceable magnet and heavy rare earth products. These are essential components in EVs, offshore wind turbines, communication technologies, and key defence initiatives.
Committed to ethical business practices, IonicRE is a participant in the United Nations Global Compact, adhering to its principles-based approach to responsible operations.