Test work on rare earths samples collected from ABx Group’s Deep Leads and Rubble Mound deposits in northern Tasmania have delivered Australia’s highest reported clay-hosted rare earths extraction rates with returns of up to 83 per cent. In addition, the program unearthed a wave of potential extensions to the zones’ mineralisation and the company has now mobilised a drill rig to test the newly identified zones.
The company says the recently discovered areas appear to host ionic adsorption clay, or “IAC” mineralisation – assets renowned for their potential to host significant inventories of permanent magnet minerals used to manufacture super magnets for electric vehicle motors, wind turbines, mobile phones and computers.
The testwork involved desorption-style analysis on 71 specimens from the two deposits with 44 samples from the program delivering recoveries of between 24 per cent to 83 per cent. ABx says the group which delivered the bumper returns came through test work completed on samples derived from IAC zones in its maiden mineral resource area.
Late last year the company tabled a 3.94 million tonne rare earths resource at its Deep Leads – Rubble Mound channel area within its northern Tasmanian portfolio. Notably, the resource offers an average total rare earths oxide, or “TREO” grade of 918 parts per million and management expects the asset’s imprint proliferating this year following additional probes.
The Deep Leads – Rubble Mound channel area is a mineralised corridor that runs between the company’s two deposits and after its latest efforts the zone appears to be ripe for the picking. Super-magnet rare earths, particularly neodymium and praseodymium, are prominent across ABx's north Tasmanian turf and with prices on the rise the company could have its hands on a key piece of real estate.
According to Adamas Intelligence, global demand for neodymium magnets alone could increase by a compound annual growth rate, or “CAGR” of 8.6 per cent by 2035. Adamas argues the demand is tied to the material’s ongoing use in the electric vehicle and wind power sectors. Conversely, the institution argues global production of neodymium, praseodymium, dysprosium and terbium will collectively increase at a slower rate as the supply side of the industry struggles to satisfy surging demand.
Global powerhouse China currently controls about 86 per cent of the planet’s rare earths supply but has held off calls to increase output in response to rising demand for the in-vogue commodity. Much of the China’s rare earths inventory is held within clay-style deposits which are renowned for the economical extraction and processing costs.
China’s position, along with surging global demand leaves Australian rare earths players with a huge carrot to chase and if ABx can continue advancing its Tasmanian-based assets the company could be well placed to ride the new energy wave – particularly after such compelling recovery rates acquired through its latest batch of test work.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
