Ionic Rare Earths Limited (ASX: IXR) has commenced its Phase 5 drill programme at its 60% owned Makuutu Rare Earths Project in Uganda.
The drill programme will aim at upgrading the Inferred Resources on Retention Licence (RL) 00007 to an Indicated Resource category and undertake reconnaissance drilling at large exploration targets identified at both Exploration Licences (EL) 00147 and 00257.
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 (HREO) supply.
The project 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.
I am excited to have resumed drilling at Makuutu. Further to the substantial base we have defined as part of the Stage 1 DFS at Makuutu with the MLA over RL 1693 pending, we have ambitious plans for further growth along the 37 km long mineralised corridor on our tenements,” Managing Director, Tim Harrison, said.
“With a second rig due to arrive on site in coming weeks, we will complete a substantial amount of core and RAB drilling during this Phase 5 programme to provide further growth opportunities and to support the next MLA on the Makuutu western zone.
“This drilling will also refine our potential growth targets to the east at the massive EL00147 target, and the new north-western target at EL00257.”
