- Ionic Rare Earths (IXR) has increased its ownership interest in the Makuutu Rare Earths Project to 31 per cent
- The company has the potential to increase its ownership even further to 60 per cent
- To date Ionic has drilled 11 diamond holes in the central zone of the project to increase the maiden inferred mineral resource estimate
- However, given the current global COVID-19 pandemic and uncertain market conditions, the company has suspended its drilling program at Makuutu
- Drilling will return once things return to normal
- Ionic has ended the day 12.5 per cent in the green and shares trading for 0.5 cents each
Ionic Rare Earths (IXR), previously Oro Verde, has increased its ownership interest in the Makuutu Rare Earths Project to 31 per cent.
This increase in ownership forms the next stage of an agreement that could see Ionic further increase its ownership to 60 per cent.
The Makuutu Project is located 120 kilometres east of the capital city of Kampala in eastern Uganda. It is made up of three licences and covers a total area of 132 square kilometres.
The significant size of the project makes it one of the largest ionic clay deposits outside of China.
Ionic is excited to be developing the Makuutu Rare Earths Project and to be a globally significant producer of heavy rare earths oxides (HERO) and critical rare earth oxides (CREO).
The company also announced today an update to drilling activities at Makuutu.
To date 11 diamond drill holes, for 240 metres, have been drilled in the central zone of the project, aiming to increase the maiden inferred mineral resource estimate of 47.3 million tonnes at 910 ppm (parts per million) TREO (total rare earth oxides).
According to Ionic, core recovery has been excellent and samples are being prepared for transport to Australia for assaying.
However, given the current global COVID-19 pandemic and uncertain market conditions, the company has suspended its drilling program at Makuutu.
This decision was reached after Ionic took into consideration advice and recommendations of regulatory bodies and authorities in both Australia and Uganda.
In the meantime Ionic is continuing with off-site project efforts that abide by these polices and is also focusing on the development of Makuutu.
Ionic has ended the day 12.5 per cent in the green and shares trading for 0.5 cents each in a $8.645 million market cap.