Ionic Rare Earths Limited (ASX: IXR) is ready for the next phase of drilling at its 60% owned Makuutu Rare Earths Project in Uganda.
The drill programme will aim at increasing the Inferred Resources on Retention Licence (RL) 00007 to an Indicated Resource category, plus also providing further confidence through reconnaissance drilling at exploration targets identified at both Exploration Licences (EL) 00147 and 00257.
Makuutu currently ranks amongst the world’s largest 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 (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%.
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.
“The long-term exploration potential is immense,” Managing Director, Tim Harrison, said. “Given the positive Stage 1 DFS at Makuutu, the progress now on the demonstration plant at Makuutu, and the pending mining licence award at Makuutu on RL 1693, the company has an eye to further growth to support the next MLA on the Makuutu western zone due to be submitted later in 2024.
“This new exploration programme will help us support the next MLA plus 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 Programme
Drilling is planned to commence in May, with both a diamond rig and RAB (Rotary Air Blast) rig secured. The Phase 5 drill programme 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 216Mt – 535Mt grading 400ppm – 600 ppm TREO.
Infill Drill Programme
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.
Currently, the company’s greater Makuutu Mineral Resource Estimate estimated at 532Mt at 640ppm Total Rare Earth Oxide (TREO) with a cut- off grade of 200ppm TREO minus Cerium Oxide (CeO2).
Only a small component of this presently exists within RL00007 with an Inferred Resource on RL00007 is 39Mt at 470ppm TREO.
To support the pending MLA on RL00007, resources will be upgraded to a minimum Indicated classification, and as such infill drilling will focus on areas A and B which also possess very favourable metallurgical extraction based upon test work to date. Some extensional drilling on areas A and B has been planned with the potential to increase the overall resource on RL00007.
Exploration Target Drilling
The zones targeted in the proposed RAB drilling programme represent the highest identified Total Rare Earth Oxide (TREO) grade Inferred and Exploration Target mineralization at Makuutu.
As detailed earlier the existing Makuutu Exploration Target (, which is additional to the current Makuutu MRE, indicated a range for additional potential mineralization at Makuutu estimated at;
216Mt – 535Mt grading 400ppm – 600 ppm TREO
The success of that programme allowed a revision of the Exploration Target. The revised Exploration Target was separated into target areas within the sedimentary basin, and those outside the basin with clay hosted REE mineralization derived from a mixture of rock types including granite, granodiorite and some mafic rocks.
For further information please visit: https://ionicre.com.au/
