Ionic Rare Earths (ASX:IXR) announces increase in mineral resource estimate

• Ionic Rare Earths (IXR) has announced a 53 per cent increase in the mineral resource estimate at its Uganda-based Makuutu rare earths project
• Initially, it was estimated there were 47.3 million tonnes, at 910 parts per million total rare earth oxides (TREO)
• New estimates now say its closer to 78.6 million tonnes, at 840 part per million TREO, a significant increase
• Ionic said the find also has global significance, as it could potentially challenge China’s dominant rare earth position
• Shares in the company are trading up five per cent, at 1.1 cents per share

Resource company Ionic Rare Earths (IXR) has increased its initial mineral resource estimate, at its Makuutu project, up a further 53 per cent, in what the company labels a ‘globally significant’ find.

In March this year, the estimate for the initial drilling at the Ugandan based project was 47.3 million tonnes, at 910 parts per million total rare earth oxides (TREO).

That’s now been upgraded to 78.6 million tonnes, at 840 part per million TREO, a significant increase.

Of that total TREO figure, 25 per cent is made up of heavy rare earth oxides and 37 per cent critical rare earth oxides.

Southern China currently sources 95 per cent of the world’s heavy rare earths, which are primarily used in modern technology.

But Ionic Rare Earths’ Chairman Tony Rovira said this updated estimate proved Makuutu could be a viable alternative supply chain.

“The updated mineral resource estimate further demonstrates the potential of the Makuutu Rare Earths Project to be a globally significant and strategic alternative supply of heavy and critical rare earths,” he said.

Following the new estimate, drilling will resume in early July, though the project was given the all-clear to resume by Ugandan officials earlier this month.

The Makuutu rare earths project is 100 per cent owned by Rwenzori Rare Metals (RRM), and Ionic currently has a 31 per cent shareholding in RRM.

Ionic’s share are currently trading at 1.1 cents each, a rise of five per cent.