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ABX Group (ASX:ABX) has seen its shares pop no less than +107% on Wednesday after Australia’s nuclear regulator ANSTO, having returned slightly radioactive rare earth testwork samples, confirmed “high extractions of heavy rare earths.”
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A 100-kilogram sample from the Deep Leads asset showed dysprosium and terbium extractions above 70% purity, which the company called on Wednesday the “two most sought-after heavy rare earths.”
Geotechnicalities were also included in the testwork summary on Wednesday, with the company reportingthat extraction can be done for cheaper with less impurities given that samples can be leached above an acidity of Ph4; in other words, pointing to a less acidic process altogether – which, and the company didn’t say this, but also implies a better ESG profile.
Australia’s environmental legislation, as opposed to that of China’s, is one often criticised (but probably desirable) impediment hampering this country’s ability to establish a domestic supply chain for rare earths.
“The ANSTO results are similar or better than ABx’s in-house leach test results, with very high extractions (above 70%) achieved,” the company wrote.
“The extraction results were very similar at pH 4 and 4.5, and only slightly lower at pH 4.7, indicating that the Deep Leads deposit could be effectively leached at an exceptionally benign pH above 4 (the acidity of apple juice).”
At any rate, if the market reaction for ABX Group (or, rather, ANSTO) can be replicated, investors will be closely watching for a second batch of REE samples due back to the company from the nuclear regulator when it comes to a pending batch of results for mixed rare earth carbonate later in Q4 of CY2025.
For the uninitiated, ANSTO is required to handle all REE samples because they tend to coincide with monazite or other mildly radioactive materials. The price action on Wednesday also shows the market remains interested in local rare earths players, given there are still hopes Canberra could elect a U.S.-like strategy of securing a price floor for select REEs, should the government truly wish to make reality an Australian-based capacity for rare earths production.
ABX last traded at 8.5cps today.
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