Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has updated the mineral resource estimate (MRE) for its 60%-owned Makuutu Heavy Rare Earths Project in Uganda resulting in a 16% increase in total tonnage and a 28% lift in the indicated resource tonnage.
Significantly, the updated MRE contains approximately 126,000 tonnes of magnet rare earth oxides (REO) and 99,000 tonnes of heavy REO.
High-value magnet REO
Within the high-value magnet REO resources are 86,000 tonnes of NdPr (neodymium-praseodymium) oxide and 7,400 tonnes of DyTb (dysprosium-terbium) oxide.
Magnet and heavy REOs are critical in efforts to establish new sources of strategic raw materials for the energy transition, advanced manufacturing, communications and defence.
The updated Makuutu MRE summarised is estimated at 617 million tonnes at 630ppm Total Rare Earth Oxide (TREO), above a cut-off grade of 200 parts per million (ppm) TREO minus CeO2 (TREO-CeO2) with the Indicated component increased by 113 million tonnes to 517 million tonnes at 650 ppm TREO.
“A unique offering”
IonicRE’s managing director Tim Harrison said: “The updated mineral resource estimate at Makuutu is in line with expectation, confirming significant additional tonnage to the west of the existing stage 1 mining licence area LML00334.
“With this information we can progress with planning on the next mining licence application and can also provide context on the growth opportunity of the project to the west.
“The increase in the overall magnet and heavy REOs contained within the total resource reaffirms the positioning of Makuutu as a development-ready, long-life alternative supply source for countries looking to diversify their primary rare earth sourcing strategies.
“This positions IonicRE with a unique offering to groups the company is presently in discussion with regarding immediate term supply from both recycling REOs (secondary sourcing) and near-term mined and processed MREC (primary sourcing).”
IonicRE said Makuutu was the most advanced Ionic Adsorption Clay (IAC) project in development today, with product available for alternative supply chains looking to decouple from existing sources.
About the MRE update
The MRE has been updated with results from the 2023 Phase 5 infill and extension drilling results which targeted MRE areas A and B. This drilling increased resource confidence and extended the defined mineralisation in these areas by about 85 million tonnes.
Inferred resources have reduced by 28 million tonnes with the majority of this reflecting the conversion of inferred to indicated confidence status in Areas A and B on Retention Licence (RL) 00007.
The update delivered a three-fold increase in resource tonnage over RL 00007, with the majority now at the indicated classification, which will support the company’s next Mining Licence Application.
This work has also resulted in a reduction in the conceptual exploration target at Makuutu to 277-750 million tonnes grading 400-700 ppm TREO.
About Makuutu
IonicRE is progressing development at the 60%-owned Makuutu Project through local Ugandan operating entity Rwenzori Rare Metals Limited (RRM).
The company has signed a conditional share purchase agreement to acquire an additional 34% interest in RRM and the strategic Makuutu Project, which will take its ownership to 94% on completion.
During the March quarter, IonicRE shareholders approved the transaction terms and pending completion of conditions precedent with the transaction expected to be completed in the second half of 2024.
Workstreams
Presently, the project team is operating the Makuutu Demonstration Plant producing MREC to facilitate advanced offtake and strategic partner negotiations.
The company is progressing several workstreams to support a targeted Final Investment Decision in late 2024, a key requirement for the potential supply of magnet and heavy REOs required to feed new heavy REO refining capacity projected to be coming online by 2026.