Diversified metals company ABx Group has tabled a maiden 3.94 million tonne rare earths resource at its Deep Leads – Rubble Mound channel area within its northern Tasmanian portfolio.
The inventory offers an average total rare earths oxide, or “TREO” grade of 918 parts per million and ABx expects the asset’s footprint to balloon from more drilling next year.
Deep Leads and Rubble Mound are two deposits that host a mineralised corridor between the two assets known as the “Deep Leads – Rubble Mound channel area”.
Notably, the zone which delivered the maiden resource estimate accounts for less than 10 per cent of the company’s 31.3 square kilometre rare earths extension area and ABx says it has already identified a suite of high-grade channels that could bolster its scale.
ABx is one of only a handful of ASX-listed companies that lay claim to projects which host the lucrative ionic clay-style deposits that have drawn comparisons with some of China’s best.
China is at the tip of the spear when it comes to the extraction and processing of rare earths and currently boasts an arsenal of clay-hosted deposits that are responsible for over two-thirds of the global supply.
Clay style rare earth deposits are in demand owing to the assets' higher proportion of permanent magnets materials including terbium, dysprosium, praseodymium and neodymium – critical components in the construction of electric vehicles.
In addition, the deposits also offer lower cheaper extraction costs and a reduced runway to production.
ABx Group CEO Dr Mark Cooksey said: “Importantly, the resource represented in this estimate only covers approximately 7.5% of the total prospective area. It is a widespread province of clay-hosted rare earths mineralisation which has some exciting thick high grade rare earths channels that ABx intends to drill-out in January-March 2023, and I look forward to updating investors as we progress this campaign.”
Following the delivery of a maiden mineral resource at its Deep Leads – Rubble Mound channel, management says it plans to commence additional metallurgical test work to get a handle on potential recoveries.
The work will be followed by additional drilling in January next year which the company says could expand its current resources.
Deep Leads and Rubble Mound form part of ABx’s larger rare earths portfolio in Tasmania that also includes the Wind Break and Portrush discoveries which are positioned roughly 16km and 52km respectively from Deep Leads.
ABx believes its projects “tick all the boxes” with mineralisation across the assets concentrated within shallow depths of between 6m and 16m from surface and very low concentrations of the radioactive elements thorium and uranium.
Curiously, the magnet rare earths that are readily found across ABx’s Tasmanian tenure account for over 90 per cent of the world’s rare earths consumption and are forecasted to grow faster than any other class of the commodity.
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By Matt Birney
