- Ionic Rare Earths (IXR) has increased its share of the Makuutu rare earths project to 46 per cent after the achievement of earn-in milestones
- Ionic has increased its interest by 15 per cent after spending a further US$800,000 (around A$1.1 million) on exploration at Makuutu
- A recent $3.5 million capital raise has provided the funds to advance the project, including further drilling, metallurgical testwork and a scoping study
- Since May, Ionic has upgraded the mineral resource estimate, enhanced extraction processes and resumed drilling across a 26-kilometre mineralised corridor — an area triple the size of the current mineral resource zone
- Ionic will continue to explore Makuutu while also seeking strategic financing and offtake arrangements
- Ionic Rare Earths is trading 11.11 per cent higher at an even one cent per share
Ionic Rare Earths (IXR) has increased its share of the Makuutu rare earths project to 46 per cent after the achievement of earn-in milestones.
The company can earn a minimum 60 per cent stake in the project, which the company believes could be a globally significant producer of both heavy rare earth oxides (HREO) and critical rare earth oxides (CREO).
Earn-in
Ionic has increased its interest by 15 per cent after spending a further US$800,000 (around A$1.1 million) on exploration at Makuutu.
The company previously upped its stake to 31 per cent in late-March with a US$650,000 (around A$900,000) spend.
A recent $3.5 million capital raise has provided the required funds to advance the Makuutu project, including further drilling, metallurgical testwork and a scoping study.
Ionic must spend a further US$250,000 (roughly A$347,000) to claim a 51 per cent stake in the project. The remaining nine per cent will come when IXR delivers a bankable feasibility study for the project, bringing its share to the agreed minimum of 60 per cent.
Further work
Ionic is continuing to execute its development strategy at Makuutu.
Since May, the company has upgraded the mineral resource estimate, enhanced extraction processes and resumed drilling across a 26-kilometre mineralised corridor — an area triple the size of the current mineral resource zone.
With the funds from the capital raise, the company can execute the next phases of drilling and testwork. Ionic also plans to deliver the Makuutu scoping study to the Ugandan Directorate of Geological Survey and Mines before November 1.
The company is working towards an exploration target of 270 to 530 million tonnes grading 400 to 1000 parts per million (ppm) total rare earth oxides (TREO). While this is more than triple the current resource estimate of 78.6 million tonnes at 840 ppm TREO, the potentially vast mineralised corridor could host the targeted payload.
Ionic will continue to explore Makuutu while also seeking strategic financing and offtake arrangements.
If everything goes according to plan, Makuutu could be a viable large-scale, low-cost alternative supplier of rare earths outside of China.
Ionic Rare Earths is trading 11.11 per cent higher at an even one cent per share at 12:03 pm AEST.