Makuutu Stage 1 DFS Confirms Technical And Financial Viability For Sustainable, Long-Life Supply Of Magnet And Heavy Rare Earths, Maiden Ore Reserve Estimate

The Board of Ionic Rare Earths Limited (“IonicRE” or “The Company”) (ASX: IXR) is pleased to advise the results of the Definitive Feasibility Study (DFS or Study) for the Stage 1 development of the Makuutu Rare Earths Project (“Makuutu” or “the Project”) which has been conducted and signed off by a series of independent competent persons. Much of the hydrometallurgical flowsheet for the Project has been developed by expert competent persons specifically for Makuutu, being a large near surface ionic adsorption clay deposit. This bespoke Intellectual Property (IP) will remain a valuable asset in optimising financial returns from Makuutu as further activity, including a Demonstration Plant, progresses to unlock further value through providing scale up data to adopt more informed information on grade control, material handling and heap desorption conditions including heap stack height.

STAGE 1 KEY DEFINITIVE FEASIBILITY STUDY (DFS) HIGHLIGHTS

The Mining Licence Application (MLA) focuses on the Stage 1 DFS and provides for a 35-Year mine life based on the Indicated Mineral Resource over Retention Licence 1693 (Application TN03834);
Stage 1 DFS delivers an EBITDA of A$2.29 billion (US$1.60 billion1), Post Tax Free Cash Flow total ~ A$1.46 billion (US$1.02 billion), Net Present Value (NPV8) (Pre-tax) of A$580 million (US$406 million) and an Internal Rate of Return (IRR) of 32.7%;
Stage 1 production of a value-added product, mixed rare earth carbonate (MREC) (including Scandium), via a modular heap desorption processing plant, amounts to a total Capital Expenditure (CAPEX) of US$120.8 million;
Stage 1 plant capacity is 5.0 million tonne per annum (Mtpa) Run of Mine (ROM) throughput;
Stage 1 TREO production of 40,090 tonnes (t) REO equivalent product, with 71% magnet plus heavy REO content;
Stage 1 Rare Earth Oxide (REO) anticipated production capacity is ~ 1,300 tpa REO over first 10 years, averaging ~1,160 tpa over 35-years of production;
Maiden Ore Reserve for the Makuutu Stage 1 over RL 1693 of 172.9 Mt at 848 ppm TREO, or 584 ppm TREO – CeO2, and 30 ppm Sc2O3;
Uniquely positioned to be a long-term sustainable magnet and heavy REO producer, with first MREC production targeted for Q4 2024; and
Further staged development and expansion options will consider the total mineral resource at Makuutu.

Strong Financial Metrics

Stage 1 Pre‐tax NPV8 of ~US$406 million (~A$580 million);
Stage 1 Post‐tax NPV8 of ~US$278 million (~A$397 million);
Stage 1 Post-tax IRR of ~32.7%;
Stage 1 Post-tax capital payback of ~3 years from first MREC production;
Stage 1 Net Revenue totalling ~US$3.98 billion (~A$5.69 billion);
Stage 1 Revenue forecast of ~US$92/kg REO equivalent produced (excluding Sc2O3), payable;
Stage 1 EBITDA totalling ~US$1.60 billion (~A$2.29 billion); and
Post Tax Free Cash Flow totalling ~ US$1.02 billion (~A$1.46 billion).

Physical Parameters

Stage 1, over MLA TN03834, provides an initial 35-year Probable Ore Reserve Estimate of 172.9 Mt @ 848 ppm Total Rare Earths Oxide (TREO) for 146,654 of contained TREO;
Stage 1 strip ratio of 0.57; and
Scandium Oxide by-product credit (~511 t Sc2O3) is included as Base Case.

Capital and Operating Costs

Pre-production CAPEX (including 10% contingency) of ~US$120.8 million, including mining fleet;
All In Sustaining Cost (AISC) for the operation is ~US$12.40/t ROM feed;
AISC for the operation is ~US$53/kg REO equivalent produced;
AISC for the operation is ~US$46/kg REO equivalent produced (including Sc2O3 by-product credit); and
Power for the Project is to be delivered from low-cost hydroelectric power accessible from 132 kV power transmission corridor running immediately through the Project tenements.

Makuutu is being developed by Rwenzori Rare Metals Limited (RRM), a Ugandan private company which owns 100% of the Makuutu Rare Earths Project. IonicRE is a 51% owner of RRM and moving to 60% with the completion of the DFS. IonicRE also maintains a first right over the remaining 40% of the Project.

The Makuutu Stage 1 Study has been prepared to support the application for the granting of the Mining Licence over RL 1693, via Mining Licence Application (MLA) TN03834 which RRM initiated in September 2022, and as such covered only the central area of the greater Makuutu resource area. It is anticipated that following the DFS, the Mining Licence over RL 1693 will be granted in Q2 2023. A further staged development approach, including additional MLAs over the other five (5) tenements at Makuutu will progressively be considered which will cover the total Mineral Resource at Makuutu.

IonicRE’s Managing Director Mr Tim Harrison stated;

“The outcome of this study, which focuses solely on the central Makuutu zone, provides the required inputs for Rwenzori Rare Metals Limited to now finalise the Mining Licence Application for RL 1693. These Stage 1 results support what we think is a unique, geopolitically strategic asset to supply magnet and heavy rare earths into western supply chains. Evidence currently shows that countries are motivated to secure sustainable, traceable supplies of these critical raw materials to support their domestic manufacturing ambitions and to support both the energy transition, and increasingly, military and defence requirements to provide sovereign capability and global security.

“Furthermore, this Stage 1 study provides a path to production at Makuutu, which has the potential for significant growth into the future through the conversion of the other tenements at Makuutu towards additional MLAs over the coming decade. The intent is to significantly increase production from the Stage 1 initial focus at Makuutu, and expand into the forecast increase in demand that will far exceed supply for the most readily sought after rare earths, being Dysprosium and Terbium. These rare earths, are critical for the production of the magnets required to drive electric vehicles, offshore wind turbines and support a number of specialised defence applications.

“Makuutu is now advancing towards a Final Investment Decision with the capability to provide more heavy rare earths per annum from our initial Stage 1 Project than existing western light rare earth hard rock mines in production today.

“The next phase of work at Makuutu, is to build the Demonstration Plant to further drive value by proving the potential to achieve high desorption heap stack heights to improve capital efficiency with a view to further increasing production capacity, whilst optimising desorption conditions to explore improved extractions and minimising the dissolution of impurities, to further optimise economics.”

Makuutu Rare Earth Project – Stage 1 Overview

Rwenzori Rare Metals Limited (RRM), a Uganda registered private limited company, is investigating the development of the Makuutu Rare Earths Project located 120 kilometres (km) east of Kampala, Uganda, illustrated in Figure 1. RRM owns 100% of the Makuutu Rare Earths Project.

This DFS has been completed in conjunction with RRM’s major shareholder, Ionic Rare Earths Limited (IonicRE) (51% of RRM moving to 60% upon approval of the DFS as per RRM earn in agreement announced 5 July 2019). IonicRE has collaborated with the other shareholders of RRM plus independent consultants to complete this DFS.

Click here for the full ASX Release

This article includes content from Ionic Rare Earths, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

asx stocks asx:ixr ionic rare earths rare earth exploration rare earth investing Resource Investing

IXR:AU

Ionic Rare Earths Limited IonicRE Presenting at MST Financial African Mining Forum

Perth, Australia (ABN Newswire) - The Board of Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is pleased to invite investors and shareholders to attend the MST Financial African Mining & Energy Forum on Monday 4 December 2023 at 1.30pm AEDT.

Managing Director Tim Harrison will discuss progress across the Makuutu Heavy Rare Earth Project and Ionic Technologies, and engagement with the new economy supply chain.

To join the presentation, please visit:
https://www.abnnewswire.net/lnk/D3QY7D2U

About Ionic Rare Earths Limited:

Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant long life, low-cost, supplier of high-value critical and heavy rare earths.

Makuutu is an advanced-stage, ionic adsorption clay-hosted project highlighted by near-surface mineralisation, significant exploration upside, excellent metallurgical characteristics and access to tier-one infrastructure.

The ionic adsorption clay-hosted geology at Makuutu is similar to major rare earths projects in Southern China, which are responsible for the majority of global supply of low cost heavy and critical rare earths, specifically the high value magnet metals (Dysprosium and Terbium) Heavy Rare Earths (>98% originating from ionic clays). Metallurgical testing at Makuutu has returned excellent recovery rates, which provide multiple avenues for a simple process route.

Makuutu is well-supported by tier-one existing infrastructure which includes access to major highways, roads, power, water and a professional workforce.

Rare Earths will play a critical role in the future of clean energy. Rare Earths are a key ingredient in the permanent magnets found in wind turbines and electric vehicles.

IonicRE is led by an experienced and proven team, who have the capabilities to deliver Makuutu into production and realise value for all stakeholders.

News Provided by ABN Newswire via QuoteMedia

[subscribe_company_profile use_post="101842652"]

Keep reading...Show less

Ionic Rare Earths Limited Welcomes EU Critical Minerals Act Progress

Perth, Australia (ABN Newswire) - The Board of Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) welcomes developments from the European Union last week, where the European Parliament and the Council, the grouping of EU governments, agreed on common text for the Critical Raw Materials Act to encourage recycling of magnet rare earths, now classified as Strategic Raw Materials.

Ionic Rare Earths Managing Director Tim Harrison said the wholly-owned Ionic Technologies facility in Belfast, UK, was progressing key discussions with magnet manufacturers on swarf (metal and magnet making waste) recycling plus exploring opportunities to access a steady supply in magnets to be recycled from sources such as end-of-life turbines from grid scale wind farms and components from used electric vehicles.

"Our proprietary magnet recycling technology will help the EU meet these targets to develop domestic, secure, and sustainable supply chains to address strategic supply and sovereign security," Harrison said.

The EU's decision upgrades the benchmark for recycling of critical raw materials from 15 percent to at least 25 percent of annual consumption of raw materials by 2030.

"Our Belfast facility is key to us harnessing our technology to accelerate our mining, refining and recycling of magnets and heavy rare earths which are critical for the energy transition, advanced manufacturing, and defence," he said.

The European Union's media release states:

"The Critical Raw Materials Act is intended to make the EU more competitive and sovereign. It aims to cut red tape, promote innovation along the entire value chain, support SMEs and boost research and the development of alternative materials and more environmentally friendly mining and production methods.

The legislation will set up economic incentives and a more stable and secure business framework for the deployment of mining and recycling projects, with faster and simpler authorisation procedures."

As a next step in this legislative process, the informal agreement must be approved by both EU Parliament and Council to become law. It will be put to a vote in the Industry, Research and Energy committee on 7 December 2023.

The Belfast Demonstration Plant location, has the ability for the Belfast facility to meet EU criterion based upon the Windsor Framework, providing dual market access across the EU and UK and provides a platform for the Company to explore both commercialisation of the technology in Belfast and also wider Europe.

About Ionic Rare Earths Limited:

Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant long life, low-cost, supplier of high-value critical and heavy rare earths.

Makuutu is an advanced-stage, ionic adsorption clay-hosted project highlighted by near-surface mineralisation, significant exploration upside, excellent metallurgical characteristics and access to tier-one infrastructure.

The ionic adsorption clay-hosted geology at Makuutu is similar to major rare earths projects in Southern China, which are responsible for the majority of global supply of low cost heavy and critical rare earths, specifically the high value magnet metals (Dysprosium and Terbium) Heavy Rare Earths (>98% originating from ionic clays). Metallurgical testing at Makuutu has returned excellent recovery rates, which provide multiple avenues for a simple process route.

Makuutu is well-supported by tier-one existing infrastructure which includes access to major highways, roads, power, water and a professional workforce.

Rare Earths will play a critical role in the future of clean energy. Rare Earths are a key ingredient in the permanent magnets found in wind turbines and electric vehicles.

IonicRE is led by an experienced and proven team, who have the capabilities to deliver Makuutu into production and realise value for all stakeholders.

News Provided by ABN Newswire via QuoteMedia

[subscribe_company_profile use_post="101842652"]

Keep reading...Show less

Ionic Rare Earths Limited Makuutu Infill Results Deliver Higher Grade Intersections

Perth, Australia (ABN Newswire) - Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is pleased to advise initial drill results from the Phase 5 resource infill and extension drilling at its 60 per cent owned Makuutu Heavy Rare Earths Project ("Makuutu" or "the Project") in Uganda.

The Company is progressing the development at the Makuutu Heavy Rare Earths Project through local Ugandan operating entity Rwenzori Rare Metals Limited ("RRM").

Assay results for 56 holes of the 128-hole Phase 5 resource infill and extension drilling program completed on Retention Licence (RL) 00007 have been received. The program is intended to increase resource estimation confidence from inferred to indicated status on resource areas A and B, and to test extensions of those areas to expand the mineral resource area. Figure 1* is a plan of the Makuutu 2022 Mineral Resource Estimate (MRE) and exploration target areas with MRE areas A and B located on the western end of the deposit located within RL00007.

Intersections compiled above the MRE lower cut-off of 200ppm Total Rare Earth Oxide less Cerium Oxide (TREO-CeO2) are listed in Table 1* and shown diagrammatically in plan view in Figure 2*.

Drilling was on a 200 metre spaced pattern with forty nine (49) of the drill holes being extensions to the MRE and seven (7) are MRE Area A infill holes. Figure 2* shows the core hole locations (diamond shape) with intersection thickness (point size) and TREO grade (point colour) with the reported 200 metre spaced holes with bold hole numbers and the previous 400m spaced holes in italic hole numbers. Previously reported regional exploration RAB drill holes are also shown (round points).

The 49 extension holes were drilled up to 1.8 kilometres west of the western boundary of MRE Area A, within the Makuutu mineralised trend. This extension drilling shows mineralisation continues beyond the MRE boundary with narrow intersections in low lying areas on the margins of the mineralised plateaus and increasing in thickness on the plateaus.

The resulted infill holes have generally shown thicker and higher-grade intervals than the original 400 metre spaced drill holes used to estimate the inferred resource. Best intersections include;

- RRMDD762, with 21.8 metres at 783ppm TREO from 4.7 metres depth; and
- RRMDD761, with 16.7 metres at 714ppm TREO from 4.7 metres depth.

Several of both extension and infill drill holes show high grade heavy rare earth (HREO) and critical rare earth (CREO) intersections including extension holes;

- RRMDD712, with 9.9 metres at 952ppm TREO including 430ppm HREO and 530ppm CREO;
- RRMDD713, with 6.7 metres at 1,008ppm TREO with 428ppm TREO and 483ppm CREO; and
- RRMDD767, with 9.9 metres at 1,163ppm TREO with 672ppm HREO and 641ppm CREO.

The elevated proportions of HREO and CREO coincide with weathered limonitic veining and alteration in the clay and underlying saprock. Furter investigations of these results is required to determine the extents of these high-grade zones.

The results from the remaining 72 drill holes are currently at the laboratory in Perth being analysed or in transit from Makuutu to Perth for analysis.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/5K3XL569

About Ionic Rare Earths Limited:

Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant long life, low-cost, supplier of high-value critical and heavy rare earths.

Makuutu is an advanced-stage, ionic adsorption clay-hosted project highlighted by near-surface mineralisation, significant exploration upside, excellent metallurgical characteristics and access to tier-one infrastructure.

The ionic adsorption clay-hosted geology at Makuutu is similar to major rare earths projects in Southern China, which are responsible for the majority of global supply of low cost heavy and critical rare earths, specifically the high value magnet metals (Dysprosium and Terbium) Heavy Rare Earths (>98% originating from ionic clays). Metallurgical testing at Makuutu has returned excellent recovery rates, which provide multiple avenues for a simple process route.

Makuutu is well-supported by tier-one existing infrastructure which includes access to major highways, roads, power, water and a professional workforce.

Rare Earths will play a critical role in the future of clean energy. Rare Earths are a key ingredient in the permanent magnets found in wind turbines and electric vehicles.

IonicRE is led by an experienced and proven team, who have the capabilities to deliver Makuutu into production and realise value for all stakeholders.

News Provided by ABN Newswire via QuoteMedia

[subscribe_company_profile use_post="101842652"]

Keep reading...Show less

Rare Earth Metals: Heavy vs. Light (Updated 2024)

The 17 elements that make up the group of rare earth metals are diverse in their applications and market dynamics. They are often broken up into two categories according to their atomic weight: light and heavy. Only scandium falls outside this categorization system.

Overall, the different rare earth metals play a huge role in the development of various technologies. They are often used in electronics like laptops and smartphones, as well as spacecraft and missile weaponry. Growing demand for batteries and green technology is adding to their importance and versatility as well.

Keep reading...Show less

Ucore's Louisiana Rare Earth Refinery is Strategically Aligned with the United States' Objectives on Western Supply Chain Resilience

Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company") is pleased to comment on the US Government's announcement to strengthen the developing American electric vehicle ("EV") market through increased tariffs on imports from the People's Republic of China ("PRC") to protect American workers and businesses. On May 14, 2024, the White House announced:

"With extensive subsidies and non-market practices leading to substantial risks of overcapacity, China's exports of EVs grew by 70% from 2022 to 2023-jeopardizing productive investments elsewhere. A 100% tariff rate on EVs will protect American manufacturers from China's unfair trade practices."

Simultaneously, the US Trade Representative issued a statement on Section 301 tariffs recommending a series of steps to eliminate the PRC's unfair trade practices, which include:

"… (4) continuing to assess approaches to support diversification of supply chains to enhance our own supply chain resilience."

and a new 25% tariff on permanent magnets^[1].

Permanent magnets are the essential component inputs for EV motors that are currently 90% plus controlled by China. Therefore, these government EV policy developments strategically align with Ucore's heavy and light rare earth element ("REE") separation facility, which is advancing in Alexandria, Louisiana. At total nameplate capacity, the Louisiana Strategic Metals Complex ("SMC") is designed to simultaneously process up to six different sources of US-friendly feedstock from all corners of the Western world. This diverse supply chain, coupled with Ucore's focus on both heavy and light REEs, will help ensure Ucore's resiliency from any single geopolitical or natural instability as the nascent North American rare earth market takes root over the remainder of the decade.

Mike Schrider, P.E., Vice President and Chief Operating Officer of Ucore, stated: "As US tariffs are implemented to level the commercial playing field by the US, our strategic ability to supply and support OEM EV manufacturers by processing heavy and light feedstock from a multitude of different Western sources essential to permanent magnet manufacturing, gives us the flexibility to grow and prosper at our Louisiana SMC. We expect this to be of significant benefit as we increase production from 2,000 tonnes per annum to our planned total nameplate production of 7,500 tonnes per annum^[2] over our first few years of production and subsequently expand our footprint across North America."

# # #

About Ucore Rare Metals Inc.

Ucore is focused on rare- and critical-metal resources, extraction, beneficiation, and separation technologies with the potential for production, growth, and scalability. Ucore's vision and plan is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.

Through strategic partnerships, this plan includes disrupting the People's Republic of China's control of the North American REE supply chain through the near-term establishment of a heavy and light rare-earth processing facility in the U.S. State of Louisiana, subsequent Strategic Metal Complexes in Canada and Alaska and the longer-term development of Ucore's 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project on Prince of Wales Island in Southeast Alaska, USA.

Ucore is listed on the TSXV under the trading symbol "UCU" and in the United States on the OTC Markets' OTCQX® Best Market under the ticker symbol "UURAF."

For further information, please visit www.ucore.com.

Forward-Looking Statements

This press release includes certain statements that may be deemed "forward-looking statements." All statements in this release (other than statements of historical facts) that address future business development, technological development and/or acquisition activities (including any related required financings), timelines, events, or developments that the Company is pursuing are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance or results, and actual results or developments may differ materially from those in forward-looking statements.

Regarding any disclosure in the press release above about the US Department of Defense or the Government of Canada Programs and the expected successful progress and resulting milestone payments from these Programs, the Company has assumed that the Programs (including each of their milestones) will be completed satisfactorily. For additional risks and uncertainties regarding the Company, the CDF, the Demo Plant and ongoing Programs (generally), see the risk disclosure in the Company's MD&A for Q3-2023 (filed on SEDAR on November 20, 2023) (www.sedarplus.ca) as well as the risks described below.

Regarding the disclosure above in the "About Ucore Rare Metals Inc." section, the Company has assumed that it will be able to procure or retain additional partners and/or suppliers, in addition to Innovation Metals Corp. ("IMC"), as suppliers for Ucore's expected future Strategic Metals Complexes ("SMCs"). Ucore has also assumed that sufficient external funding will be found to complete the Demo Plant demonstration schedule and also later prepare a new National Instrument 43-101 ("NI 43-101") technical report that demonstrates that the Bokan Mountain Rare Earth Element project ("Bokan") is feasible and economically viable for the production of both REE and co-product metals and the then prevailing market prices based upon assumed customer offtake agreements. Ucore has also assumed that sufficient external funding will be secured to continue the development of the specific engineering plans for the SMCs and their construction. Factors that could cause actual results to differ materially from those in forward-looking statements include, without limitation: IMC failing to protect its intellectual property rights in RapidSX™; RapidSX™ failing to demonstrate commercial viability in large commercial-scale applications; Ucore not being able to procure additional key partners or suppliers for the SMCs; Ucore not being able to raise sufficient funds to fund the specific design and construction of the SMCs and/or the continued development of RapidSX™; adverse capital-market conditions; unexpected due-diligence findings; the emergence of alternative superior metallurgy and metal-separation technologies; the inability of Ucore and/or IMC to retain its key staff members; a change in the legislation in Louisiana or Alaska and/or in the support expressed by the Alaska Industrial Development and Export Authority ("AIDEA") regarding the development of Bokan; the availability and procurement of any required interim and/or long-term financing that may be required; and general economic, market or business conditions.

Neither the TSXV nor its Regulation Services Provider (as that term is defined by the TSXV) accept responsibility for the adequacy or accuracy of this release.

CONTACTS

Mr. Michael Schrider, P.E., Ucore Vice President and Chief Operating Officer, is responsible for the content of this news release and may be contacted at 1.902.482.5214.

For additional information, please contact:

Mark MacDonald
Vice President, Investor Relations
Ucore Rare Metals Inc.
1.902.482.5214
mark@ucore.com

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

Acquisition of Option Over Highly Prospective Raptor Rare Earth Project within the Caldeira Ree Complex

Perpetual Resources Limited (“Perpetual” or “the Company”) (ASX: PEC), is pleased to announce that it has entered into a binding Term Sheet (Binding Term Sheet) for an option to acquire 100% of the rare earth elements, niobium and scandium mineral rights located on four (4) tenements (Exploration Tenements) with Mineracao Serra Do Sao Domingos Ltda (Sao Domingos).

Keep reading...Show less

Makuutu Stage 1 DFS Confirms Technical And Financial Viability For Sustainable, Long-Life Supply Of Magnet And Heavy Rare Earths, Maiden Ore Reserve Estimate

What are light rare earth metals?

What are heavy rare earth metals?

What else should investors know about heavy and light rare earths?

China's influence remains strong...

... but investment opportunities exist

Share Purchase Plan and Tranche 1 Placement Raise $1,350,000

Latest News

Latest Press Releases

Related News

TOP STOCKS