Cummins Range Rare Earth and Phosphate Project – Development and Progress Update

RareX Limited (RareX, the Company) (ASX: REE) is pleased to provide an update on ongoing development and stakeholder engagement activities at its 100%-owned Cummins Range Rare Earth and Phosphate Project, located in the Kimberley region of Western Australia.

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Highlights

• 2022 drilling program complete with 16,000m drilled to support ongoing metallurgical studies and an upgraded Mineral Resource Estimate expected Q1 2023.
  
• Metallurgical studies suggest that a combined apatite-monazite float could be achieved with subsequent separation by magnetics – further simplifying the Project from the Scoping Study.
• Power and land access currently under negotiation at Wyndham Port to support a phased infrastructure development solution.
• Mining Agreement negotiations underway with the Jaru Native Title Holders.
• Team bolstered with appointment of Damien Krebs to assist with Metallurgy.
• R&D Claim for FY22 being finalised.

Metallurgical test work is continuing and showing promising signs to achieve an upsized and simplified combined flotation product from the mine site by focusing on monazite and apatite together following a clay removal de-slime step. This has the potential to simplify the Project from the one originally scoped out for the Pre-Feasibility Study (PFS) with interim product options and the ability to phase in the deployment of key infrastructure.

Power and land access negotiations and technical assessments are well underway with Pac Hydro and Horizon Power, respectively the generator and distributor of the Ord River hydro-electric power. The negotiation protocol with the Jaru Traditional Owners has been signed and formal negotiations are underway following the formation of the Jaru Native Title Negotiation Committee and the appointment of lawyers. A scope of works has been prepared for a community impact assessment which will be integrated with the heritage agreement in support of the Mining Licence application. Meanwhile, baseline assessments for flora, fauna, soils, waste, water and heritage are underway and preparation for next year’s surveys have begun.

RareX Managing Director, Jeremy Robinson, said:"We are making material progress with the development and evolution of the Project on multiple fronts. Cummins Range is advancing rapidly towards the development phase and 2023 should see numerous key milestones achieved.”

Studies and Project Evolution

The recently completed Scoping Study1, based on the 2020 Mineral Resource, highlighted a potential pathway to monetise both the rare earth and phosphate assets at Cummins Range across two infrastructure locations – Cummins Range and Wyndham Port. The Scoping Study has provided a platform from which to grow and evolve the Project, with the results of ongoing metallurgical test work a key determining factor in its overall scope and configuration.

Recent work suggests an opportunity to simplify the Project while also allowing for an increase in scale at the next study phase. This will be supported by the impending Mineral Resource update, scheduled for Q1 2023.

The 2022 Scoping Study defined a 1.5Mtpa open cut mine at Cummins Range, feeding 500ktpa of Run-of- Mine (ROM) material to a beneficiation (bene) plant comprising simple flotation cells. This plant would produce two concentrate products: a rare earth concentrate and a phosphate concentrate. These concentrates are proposed to be trucked to Wyndham Port.

Recent metallurgical test work suggests that this can be simplified into a single, mixed flotation concentrate of rare earths and phosphate.

At Wyndham Port, a refinery powered by the Ord River hydro facility is envisaged which would process the rare earth concentrate into two further products: a mixed rare earth carbonate (MREC) and phosphoric acid.

With the delivery of a simplified, single interim product from the mine, the coastal infrastructure could be simplified further, allowing for the staged installation of refining capability, deferring capital and reducing execution risk.

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