Uganda has discovered 315 Million tonnes at 650 parts per million Total Rare Earth Oxide at Makuutu in Eastern Uganda, a significant 210% increase to Mineral Resource Estimate (MRE) at a cut-off grade of 200 parts per million Total Rare Earth Oxide.
According to the Board of Ionic Rare Earths Limited, which owns 51% of the Makuutu project, this updated MRE places Makuutu amongst the world’s largest ionic adsorption clay (“IAC”) deposits, and as such, a globally strategic resource for low-cost, high-margin and long-term security of critical and heavy rare earth (“HREO”) supply.
Commenting on this significant MRE upgrade, IonicRE’s Managing Director, Tim Harrison said:
“This is a fantastic result for the Company and materially exceeds the long-held expectation that the Company has had since first acquiring the interest in Makuutu back in August 2019. In just over 18 months, we have been able to advance the highly encouraging Exploration Target to now confirm Makuutu to be one of the largest ionic adsorption clay deposits outside of China, with one of the largest publicly reported TREO mineral resource estimates globally.”
“The magnitude of this Mineral Resource will provide a platform for the Company to now look to finalise the Makuutu Scoping Study, which will reflect the significant nature of the resource, underpinning what we anticipate will be a long-term, low-capital and high-margin critical and heavy rare earth producing asset.”
“Makuutu has additional areas of mineralisation which have not been classified at this stage. I believe it is reasonable to expect, with a high level of confidence, that additional drill programs have the potential for further increases to the resource. The Company is commencing further targeted drilling this month, and it is expected that, combined with the potential of EL00147, additional material resource increases remain highly probable. Combined, the overall potential for a long-life, low-cost, high-margin critical and heavy rare earth opportunity at Makuutu is high.”
The Makuutu deposit is interpreted to be an ionic adsorption REE clay-type deposits like those in south China, Myanmar, Madagascar, Chile and Brazil.
The Project
The Makuutu Rare Earths Project is an ionic adsorption clay (“IAC”) hosted Rare Earth Element (“REE”) deposit located 120 km east of Kampala in Uganda and is well serviced by existing high quality infrastructure including roads, rail, power infrastructure and cell communications. The installed infrastructure is illustrated in Figure 7.
The deposit stretches 37 km in length and has demonstrated potential for a long life, low-cost capital source of critical and heavy rare earths. These IAC deposits are prevalent in southern China which have been the source of the world’s lowest cost critical and heavy REE production, however these deposits are gradually being exhausted and Makuutu represents one of only a handful of such deposits outside of southern China.
Letters to My Younger Self: Robinah Siima — “Success Is Quieter, But Richer”The Project has the potential of generating a high margin product with an operation life exceeding 30 years. The Project is also prospective for a low-cost Scandium co-product.
Ownership
The Makuutu Rare Earths Project is 100% owned by Rwenzori Rare Metals Limited (“RRM”), a Ugandan registered company. IonicRE currently has earned a 51% shareholding in RRM and may increase its shareholding to 60% by meeting further commitments as follows:
1. IonicRE to fund to completion of a Bankable Feasibility Study (“BFS”) to earn an additional 9% interest for a cumulative 60% interest in RRM.
2. Milestone payments, payable in cash or IonicRE shares at the election of the Vendor, as follows: • US$375,000 on production of 10 kg of mixed rare-earth product from pilot or demonstration plant activities; and
• US$375,000 on conversion of existing licences to mining licences.
