FY24 Half Year Financial Report
Melbourne, Mar 14, 2024 AEST (ABN Newswire) - Ionic Rare Earths Limited's (
ASX:IXR) (IXRRF:OTCMKTS) Makuutu currently ranks amongst the world's largest and most advanced 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 oxide (REO) supply.
Makuutu comprises six licences covering approximately 300 square kilometres, located 120 kilometres east of Kampala in Uganda. The deposit, stretching 37 km end to end, is situated near existing infrastructure and has the potential to provide western customers with a strategic alternative supply of heavy rare earths to support the development of resilient supply chains, and the growth of advanced manufacturing and industries critical to achieve net-zero carbon initiatives for 50 years and beyond.
Makuutu is being developed by Rwenzori Rare Metals Limited, a Ugandan private company which owns 100% of the Makuutu Project. IonicRE is a 60% owner of RRM, and during the quarter, announced it had signed a conditional share purchase agreement to acquire an additional 34% interest in the strategic Makuutu Rare Earths Project, taking the Company's ownership to 94% on completion.
The increase in ownership represents a watershed moment for the Company with ownership at a 94% interest, opening a multitude of potential funding and offtake scenarios in financing the development of the Project. The Company continues discussions with partners on a transaction to acquire the remaining 6%.
Makuutu Demonstration Plant
During the half, the Company progressed the establishment of a Demonstration Plant located on site at Makuutu in Uganda.
The Makuutu Demonstration Plant technical facility will aim to further optimise metallurgical test work and provide further technical validation basis for grade control, mine design, material handling, metallurgical reconciliation, and construction activity whilst also supporting Project financing and strategic partner activity.
First production of mixed rare earth carbonate product is expected in quarter 1 2024.
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About Ionic Rare Earths Limited
Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant long life, low-cost, supplier of high-value critical and heavy rare earths.
Makuutu is an advanced-stage, ionic adsorption clay-hosted project highlighted by near-surface mineralisation, significant exploration upside, excellent metallurgical characteristics and access to tier-one infrastructure.
The ionic adsorption clay-hosted geology at Makuutu is similar to major rare earths projects in Southern China, which are responsible for the majority of global supply of low cost heavy and critical rare earths, specifically the high value magnet metals (Dysprosium and Terbium) Heavy Rare Earths (>98% originating from ionic clays). Metallurgical testing at Makuutu has returned excellent recovery rates, which provide multiple avenues for a simple process route.
Makuutu is well-supported by tier-one existing infrastructure which includes access to major highways, roads, power, water and a professional workforce.
Rare Earths will play a critical role in the future of clean energy. Rare Earths are a key ingredient in the permanent magnets found in wind turbines and electric vehicles.
IonicRE is led by an experienced and proven team, who have the capabilities to deliver Makuutu into production and realise value for all stakeholders.
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