Home Business Positive Drill Results Indicate Growth Potential at Makuutu Rare Earths Project in...

Positive Drill Results Indicate Growth Potential at Makuutu Rare Earths Project in Uganda

67
0
positive drill results indicate growth potential at makuutu rare earths project in uganda
positive drill results indicate growth potential at makuutu rare earths project in uganda
Share this News

Ionic Rare Earths Ltd has received encouraging results from its recent drilling activities at the Makuutu Heavy Rare Earths Project in Uganda. These findings suggest that the project has the potential for further resource growth.

The company obtained positive assay results from Phase 5 rotary air blast (RAB) drilling in the northwest region of the project. These results were from Exploration Licence (EL) 00257 and Retention Licence (RL) 00007, situated at the western end of Makuutu. Out of the 31 drill holes examined, 26 reported significant clay-hosted rare earth intersections above the 2022 resource estimate cut-off grade of 200 parts per million (ppm) total rare earth oxide minus cerium oxide (TREO-CeO2).

Some notable intersections include:

  • 8 meters at 975 ppm TREO from 7 meters in RRMRB117.
  • 20 meters at 865 ppm from 6 meters in RRMRB115.
  • 20 meters at 789 ppm from 4 meters in RRMRB116.
  • 24 meters at 781 ppm from 4 meters in RRMRB129.
  • 20 meters at 756 ppm from 4 meters in RRMRB120.

These results bring the total number of rare earth intersections in Phase 5 RAB drilling to 69 out of 76 holes drilled across various tenements.

Metallurgical test-work on these samples is underway by IonicRE’s local Ugandan operating entity, Rwenzori Rare Metals Ltd (RRM). This test-work will contribute to an updated exploration target for Makuutu, expected to be revealed later this year.

Investors have responded positively to this news, with IonicRE shares seeing an increase of approximately 8.7% in mid-morning ASX trading, reaching A$0.025.

Managing director Tim Harrison expressed optimism about the project’s future, particularly regarding clay-hosted rare earth mineralization in EL00257 and EL00147. He emphasized the importance of Makuutu in providing a reliable and traceable supply of magnet rare earth oxides, crucial for the energy transition, advanced manufacturing, and defense sectors.

Ongoing infill drilling activities continue within the Makuutu mineral resource estimate (MRE) to enhance confidence levels from inferred to indicated status. The program, which has drilled 103 holes totaling 2,032 meters, is expected to conclude later this month. Pending drill assay results will further evaluate the economic potential of the rare earths discovered, potentially leading to an updated exploration target.

The conceptual exploration target for Makuutu, distinct from the current Makuutu MRE, anticipates additional mineralization ranging from 216-535 million tonnes grading 400-600 ppm TREO, based on reasonable company assumptions and grounds.