The Conversation (0)
The Board of Ionic Rare Earths Limited (“IonicRE” or “The Company”) (ASX: IXR) is pleased to advise on the commencement of the Phase 5 drill program at its 60% owned Makuutu Rare Earths Project (“Makuutu” or “the Project”). The drill program will aim at upgrading the Inferred Resources on Retention Licence (RL) 00007 to an Indicated Resource category and undertake reconnaissance drilling at large exploration targets identified at both Exploration Licences (EL) 00147 and 00257 (refer Figure 1).
- IonicRE commences Phase 5 drill program at Makuutu across RL00007, EL00147 and EL00257;
- Infill drilling at RL00007 to support next Mining Licence Application (MLA);
- Reconnaissance drilling at Makuutu exploration targets on EL00147 to evaluate areas with known REE mineralisation, and EL00257, which contains several untested geophysical anomaly target areas; and
- Second drill rig expected to be mobilised within 4 weeks.
Makuutu currently ranks amongst the world’s largest and most advanced ionic adsorption clay (IAC) deposits, and as such, a globally strategic resource for near term, low capital development and long- term security of magnet and heavy rare earth oxide (HREO) supply.
Makuutu is made up of six tenements, with the Makuutu central tenement, RL 1693, the only tenement used to support the recently announced positive Makuutu Stage 1 Definitive Feasibility Study (DFS), which showed that Makuutu would have an initial 35-year mine life with EBITDA of A$2.29 billion and an IRR of 32.7% (ASX: 20 March 2023).
With the addition of the other tenements at Makuutu, the larger consolidated Project has substantial scope for future growth, and increasing geopolitical importance, to underpin the establishment of western sources for new magnet and heavy rare earths supply chains.
Ionic Rare Earths Managing Director Mr. Tim Harrison commented:
“I am excited to have resumed drilling at Makuutu. Further to the substantial base we have defined as part of the Stage 1 DFS at Makuutu with the MLA over RL 1693 pending, we have ambitious plans for further growth along the 37 km long mineralised corridor on our tenements.”
“With a 2nd rig due to arrive on site in coming weeks, we will complete a substantial amount of core and RAB drilling during this Phase 5 program to provide further growth opportunities and to support the next MLA on the Makuutu western zone. This drilling will also refine our potential growth targets to the east at the massive EL00147 target, and the new north-western target at EL00257.”
Phase 5 Drill Program
The Phase 5 drill program will include approximately 4,380m of core drilling used for resource upgrade on RL00007 plus 2,230m of RAB drilling used for evaluation of exploration targets on EL00147 and EL00257.
In addition, the Company has a stated exploration target outside of the estimated resources of (ASX: 1 June 2022):
216 – 535 million tonnes grading 400 – 600 ppm TREO*
*This Exploration Target is conceptual in nature but is based on reasonable grounds and assumptions. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Figure 1: Makuutu Project resource map showing resources and the Makuutu western tenement, RL00007 (highlighted orange), the Stage 1 Mining Licence Application TN03834 (red border) and exploration target areas.
Infill Drill Program
IonicRE will prioritise infill drilling to areas located on RL00007 to increase resource classification from Inferred Resources to Indicated Resources, supporting the Stage 2 DFS and the next MLA expected to be completed on RL00007 in November 2024.
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.
IXR:AU