Phase 5 drill program at Makuutu Rare Earths Project commences
Ionic Rare Earths is embarking on the Phase 5 drill program at its Makuutu Rare Earths Project. The primary objectives of this program are to upgrade the Inferred Resources on Retention Licence (RL) 00007 to an Indicated Resource category and to conduct reconnaissance drilling at large exploration targets on Exploration Licences (EL) 00147 and 00257.
The Makuutu Rare Earths Project is considered one of the world’s largest and most advanced ionic adsorption clay (IAC) deposits. It holds significant strategic value as a near-term, low-capital development resource for magnet and heavy rare earth oxide (HREO) supply, ensuring long-term security in this area.
The project encompasses six tenements, with the Makuutu central tenement, RL 1693, being the only one utilized in the recently announced positive Makuutu Stage 1 DFS (Definitive Feasibility Study). The Stage 1 DFS revealed that Makuutu has an initial mine life of 35 years, with an estimated EBITDA of A$2.29 billion and an internal rate of return (IRR) of 32.7% (ASX announcement on 20 March 2023).
Geopolitical importance
By incorporating the additional tenements at Makuutu, the consolidated Project presents substantial opportunities for future growth. It also enhances the geopolitical importance of establishing western sources for new magnet and heavy rare earths supply chains.
Tim Harrison, the Managing Director of Ionic Rare Earths, expressed his enthusiasm for the resumption of drilling at Makuutu. He mentioned that in addition to the substantial base established in the Stage 1 DFS, the company has ambitious plans for further growth along the 37 km mineralized corridor across its tenements. The Phase 5 drill program, involving the deployment of a second rig, aims to provide growth opportunities and support the next Mining Lease Application (MLA) on the Makuutu western zone. Furthermore, it will refine potential growth targets to the east at the massive EL00147 target and the new north-western target at EL00257.
