Approval To Start Heap Desorption Demonstration Plant At Makuutu Mine Site

Following on from the recent announcement on the positive Makuutu Stage 1 Definitive Feasibility Study (DFS) announced 20 March 2023, the Company, via our Ugandan subsidiary Rwenzori Rare Metals Limited (“RRM”), is progressing the construction of a technical facility at the Makuutu Mine Site required to validate and optimise metallurgical test work and provide a foundation for grade control, mine design, material handling, metallurgical reconciliation and scale up construction activity to support the commercial Project financing process. As this represents a significant capital expenditure, prudent engineering management requires a suitable demonstration be conducted for a representative period of time in order to de-risk the entire process chain of MREC production from mining to transportation to potential customer facilities.

The Makuutu Demonstration Plant will be one of the first large scale ionic adsorption technical facilities outside of China and represents the initial phase of development at Makuutu. The Demonstration facility will consolidate further metallurgical test work, including an extensive scale up program from 3 metre (m) to 6 m tall heap desorption columns and 6 m tall heap desorption cribs, which will be conducted and signed off by a series of independent competent persons. The technical facility will also include a nano-filtration (NF) test unit, precipitation circuits, drying facilities, additional metallurgical test capabilities, an analytical laboratory which will service an eventual full scale mine operation and offices and site infrastructure to support the overall demonstration program. Additional facility test equipment has been ordered and is expected to arrive to site during this quarter.

Manufacture of the initial technical facility super structure has commenced, along with land acquisition suitable for the Demonstration Plant site location at the Makuutu mine site., A Ugandan construction partner has been contracted to complete initial access roads, site civils and construct the facility.

The second phase of the Demonstration Plant is expected to commence shortly after positive confirmation of the 6 m tall heap stack height and will consist of a series of 5,000 tonne heap desorption modules, which will cycle through various stages of desorption to produce REE loaded desorption rich pregnant leach solution (PLS) liquor. From the REE rich PLS liquor, the Company will produce significant quantities of mixed rare earth carbonate (MREC) for downstream supply chain partner engagement, facilitate off-take, plus also provide feed material to supply IonicRE’s own downstream refinery program.

IonicRE’s Managing Director Mr Tim Harrison stated;

“The commencement of the Demonstration Plant construction at Makuutu, plus approval to proceed granted by the MEMD in Uganda, represents an exciting milestone for the Project and the Company. The process of de-risking the operation and providing MREC samples is essential to the next stage of attracting supply chain partners and moving towards a Final Investment Decision on the positive outcome of the Demonstration Plant.”

“With the Makuutu Stage 1 DFS now completed, and MLA progressing in Uganda, the support from the MEMD to approve progressing to the next step is a positive signal as well their commitment to sustaining an enabling environment and continued support for the development of the Makuutu Rare Earths Project. This Project will be Uganda’s flagship, long-life mine. We expect that as we progress through Q2, we will continue to receive positive support on the application, and greater definition on the role Makuutu will play in establishing a heavy rare earths supply opportunity to western end users.”

Makuutu Demonstration Plant Development Approach

A dedicated technical team has been assembled in Uganda to drive demonstration activity, working closely with the technical team in Australia, and further appointments will be made over the course of the coming months