Rare Earth Elements (REEs), comprising 15 lanthanides plus scandium and yttrium, are increasingly pivotal in a variety of critical applications, including smartphones, electric vehicles, wind turbines and medical treatments.
These 17 elements from the periodic table play an essential role in modern technology and in achieving decarbonisation objectives.
The global supply chain of REEs is highly concentrated, creating economic vulnerabilities and geopolitical concerns.
This is partly due to the potential use of these minerals as 'economic weapons'.
The complexity of the supply chain, coupled with environmental considerations, makes REEs a focal point in materials science, industry and international relations.
Australia's involvement in global market
In response to these challenges, Australia has launched its Critical Minerals Strategy, aiming to capitalise on the nation's significant critical mineral resources.
After extensive public consultation, six focus areas were identified to meet the Australian Government’s objectives in the critical minerals sector.
The global demand for REEs is forecasted to reach 315,000 tonnes by 2030, driven by the transition to clean energy technologies, such as electric vehicles, wind and solar power.
As the world's fourth-largest REE producer, Australia has seen its output grow from 1,995 tonnes in 2011 to an annual capacity of 24,000 tonnes.
This growth underscores Australia's role in meeting the burgeoning global demand.
Reducing dependence on China
Recognising the need to diminish reliance on China, particularly in downstream capacities like manufacturing permanent magnets and end-products, Australia is expanding its part in the supply chain.
The Australian Government has committed A$30 million as part of a broader A$240 million investment in the critical minerals sector.
This investment aims to reduce dependence on China and is a testament to the strategic importance of the REE industry for Australia's economic and technological future.
A few players that generated strong Q3 news flow:
American Rare Earths
American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) delivered ‘significant’ progress during the September quarter of 2023, advancing exploration projects and establishing a new US-based leadership team.
At Halleck Creek in Wyoming, the company kicked off resource drilling with a focus on high-grade areas and testing mineralisation to depths of more than 300 metres.
Promisingly, the current 1.43 billion tonnes maiden JORC resource at the project remains open at depth and laterally.
Meanwhile, at Beaver Creek, ARR highlighted a new high-grade rare earth discovery.
Consequently, the company’s claims landholding was increased by 85% for a total area of 1,389 acres.
US-based team
Spearheading the US transformation campaign, ARR appointed US-based CEO, Donald S. Swartz II, who began his role at the company’s new headquarters in Denver, Colorado.
Three new US-based directors Kenneth Traub, John Mansanti and Paul Zink and a US-based CFO Jose Rico were also appointed.
Furthermore, ARR announced its sponsored level 1 ADR Program and began trading on the OTCQX market.
ARR is well-funded with A$9.6 million in its coffers as of September 30, 2023.
The company has sufficient cash to carry out its planned activities for FY2024 with no current requirement to raise capital.
In addition, ARR holds significant financial assets associated with ASX-listed Cobalt Blue Holdings and, during the quarter, became a substantial shareholder in Godolphin Resources on September 4, 2023, with a 13.21% shareholding.
Australian Strategic Materials
Driving its strategic business priorities, Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF) has made significant progress during the September quarter across its Dubbo Project in Australia and the Korean Metals Plant (KMP).
During the quarter, the company signed its first long-term alloy sales agreement with USA Rare Earth, LLC.
At Dubbo, ASM confirmed the design capability of the project’s advanced process flowsheet to produce high-purity terbium and dysprosium oxides at industry-leading product quality.
The company also progressed with Dubbo Project and KMP offtake discussions, supported by ongoing technical validation processes and customer visits.
Meanwhile, KMP delivered its FY23 carbon net zero target for Scope 1 and Scope 2 emissions.
Furthermore, ASM strengthened its management team with the appointment of Chris Jordaan as chief operating officer.
Dubbo project
During the quarter, ASM awarded a consultancy services agreement to Bechtel Australia Pty Ltd for the provision of engineering services for non-process infrastructure (NPI) study work to support the advancement of the company’s Dubbo Project.
ASM undertook various other streams of activities that are critical to ensuring that the company is well-placed to commence construction once it has made FID on the Dubbo Project
During the quarter, ASM concluded its terbium (Tb) and dysprosium (Dy) heavy rare earth separation test work utilising synthetic samples created from commercially purchased third-party rare earth powders which replicate the product expected from the Dubbo Project at that stage in the separation process.
The positive results show the process is capable of producing Tb and Dy oxide product streams that meet or exceed target specifications of >99.99% for Tb and > 99.95% for Dy, at steady state.
The company also kicked off studies on an alternative circuit for the preparation of the niobium concentrate to be used as the feed source for the ferroniobium (FeNb) smelter.
Korean Metals Plant
During the quarter, ASM signed a five-year binding sales and tolling framework agreement with USA Rare Earth, LLC (USARE) for the supply of neodymium iron boron (NdFeB) alloy.
In addition, the company entered a three-way non-binding MoU with Blackstone (NYSE:BX) Minerals Limited (BSX) and Vietnam Rare Earth Joint Stock Company (VTRE) to explore opportunities supporting a longer-term supply of rare earth oxide.
The company is also advancing negotiations and discussions with potential customers for both NdPr metal and NdFeB alloy and saw the KMP progress through technical qualification processes with customers in both the US and the EU.
Ionic Rare Earths
Ionic Rare Earths Ltd (ASX:ASX:IXR, OTC:IXRRF)'s September quarter highlights its development activities at the Makuutu Rare Earths Project in Uganda and its magnet recycling subsidiary, Ionic Technologies International Limited in the UK
The quarter culminated in the achievement of several significant milestones across both Makuutu and Ionic Technologies, accelerating IonicRE to fulfil its strategic objective to support Western economies in securing critical rare elements of magnet and heavy rare earth oxides for the new economy.
IonicRE’s innovative technology and patented processes will accelerate the mining, refining and recycling of these elements critical for energy transition, advanced manufacturing, and defence programs.
Engagement continues with government stakeholders and potential strategic partners interested in the unique appeal of the Makuutu basket of magnet and heavy rare earths as well as separated magnet rare earth oxides (REO) from Ionic Technologies to feed new emerging supply chains.
Meanwhile, Ionic Tech now has a ‘first mover’ advantage in the industrial elemental extraction of separated REOs from spent magnets and waste, enabling near-term magnet REO production capability to satisfy growing demand from the energy transition, advanced manufacturing, and defence.
Makuutu Rare Earths Project
During the quarter, The company received strong support from Uganda’s Government Minister for Energy and Mineral Development for the licensing and development of Makuutu.
Ionic appointed DRA Global to review Makuutu’s definitive feasibility study (DFS), examine opportunities for further cost efficiencies, time savings and scale, and advise on the Makuutu Demonstration Plant program value optimisation to support the Final Investment Decision (FID).
At the field, phase 5 rotary air blast (RAB) tranche 1 and 2 assays on exploration licence (EL) 00147, EL00257 and RL00007 confirmed clay-hosted rare earth intersections in 69 of 76 drill holes.
Diamond infill drilling continued at Retention Licence (RL) 00007, aiming to increase resource classification to Indicated Resource, completed post-end of the quarter.
Ionic Technologies UK
Ionic Technologies has secured landmark partnership agreements with Ford Technologies Limited, Less Common Metals Limited (LCM), and the British Geological Survey (BGS) to create a UK rare earth supply chain from recycled magnets.
Ford and LCM partnership is via a £1 million UK government grant, with Ionic Technologies announced as the major beneficiary and lead collaborator in the focus on delivering the UK’s first domestic sourcing of separated high purity magnet rare earth oxides (REOs).
An additional £1 million grant funding was awarded to Ionic Technologies, in collaboration with the British Geological Survey, for a feasibility study into the construction and supply side dynamics of a magnet rare earth recycling plant in the UK.
The funding is part of the UK Government’s Circular Critical Materials Supply Chains (CLIMATES) program.
The move is an important step towards sovereignty for the UK, in developing market-leading technology and building a supportive pathway for Ionic Technologies to commercialise the first magnet recycling facility in Belfast to feed the escalating supply chain appetite for circular economy magnet REOs.
Kingfisher (LON:KGF) Mining
During the September quarter, Kingfisher Mining Ltd (ASX:KFM) made several breakthroughs in high-grade rare earth elements discoveries and is advancing its lithium exploration in the highly prospective Gascoyne Region.
At Mick Well, three large carbonatite pipe targets were identified from the ground gravity survey.
During the quarter, the company’s newly procured Chalby Chalby Prospect delivered multiple stacked pegmatites with a combined strike length of more than 13,000 metres and initial assays up to 0.61% lithium.
Furthermore, airborne geophysical surveys were completed across the company’s Chalba and Mooloo tenements, providing new and valuable information for ongoing targeting of REEs and lithium-bearing pegmatites.
Gascoyne exploration
Kingfisher is undertaking high-impact and value-building exploration programs targeting large-scale carbonatite targets along its 54-kilometre Chalba target corridor and its 30-kilometre-long Lockier target corridor.
The program will test high-priority carbonatite targets across the company’s belt-scale tenement holding, building upon the significant carbonatite discoveries, which confirmed the presence of high-grade REE mineralisation along the Chalba target corridor.
In addition, the company is undertaking exploration for lithium associated with various pegmatite outcrops within its tenements at Chalby Chalby.
Lindian Resources
The September quarter saw Lindian Resources Ltd (ASX:LIN, OTC:LINIF) continue to deliver impressive results from its Kangankunde Rare Earths Project in Malawi
During the quarter, the company outlined its maiden mineral resource of 261 million tonnes at 2.18% TREO, placing Kangankunde amongst one the world’s largest rare earths deposits.
The company also returned ‘spectacular’ assays from its deep drilling program, highlighting mineralisation over entire 10,000-metre depths.
At its bauxite assets in Guinea, Lindian inked an MoU with Compagnie des Bauxites de Guinée (CBG) for the Gaoual Bauxite Project.
CBG is one of the largest single producers of bauxite in the world with operations focused in Guinea.
Post the end of the quarter, Lindian reported an exploration target for the Kangankunde Rare Earths Project Central Carbonatite of between 400 million tonnes (lower range) to 800 million tonnes (upper range) grading between 2.0% and 2.7% TREO.
“Globally significant” project
Lindian executive chairman Asimwe Kabunga said:: “Lindian has made excellent progress again this quarter across multiple areas including drilling, assays, Stage 1 processing plant design and construction and design, engineering, and funding.
“The release of Lindian’s maiden mineral resource estimate for Kangankunde and more recently an exploration target demonstrate that Kangankunde is a standout globally significant high-grade non-radioactive rare earths project, having high-levels of NdPr and with the potential for long mine-life.
“At the same time, we continue to make significant progress on commercialising our bauxite assets in Guinea with our strategic objective of having two world-class projects in high-demand commodities leveraged to the rapidly growing electric vehicle industry in operation simultaneously.
“The $35 million placement completed in late July provides the funding required to advance the development of Kangankunde at a rapid rate.
“As a consequence, Lindian is very well placed with sufficient funding to execute our current work programs and immediate strategic objectives.”
Mineral resource estimate
The maiden mineral resource estimate (MRE) of 261 million tonnes at 2.19% TREO, achieved within less than 12 months of ownership, places Kangankunde amongst one the world’s largest, rare earths deposits and positions it as a globally strategic resource for secure, long-term supply.
Key attributes are:
- 5.7 million tonnes contained rare earths;
- 1.2 million tonnes of contained NdPr;
- Mineral resource NdPr ratio averages 20.2% of TREO;
- Non-radioactive mineralisation;
- MRE includes multiple higher-grade subsets;
- Mineralisation remains open in all directions; and
- Gravity water separation only: 70% recovery, 66% TREO concentrate grade.
Deep drill program
During its phase 2 deep drilling program, Lindian demonstrated high-grade rare earth mineralisation at Kangankunde.
The company highlighted high levels of rare earths critical metal elements NdPr that average +20% of TREO and extremely low levels of thorium and uranium i.e. nonradioactive, over the entire lengths of the two deep holes, which were 980 metres and 1,000 metres in depth respectively.
All holes in the Phase Two Drill Program are mineralised from surface to end of hole and terminate in mineralisation, with grades of up to 12.9% TREO.
Placement
During the quarter, Lindian completed a $35 million placement with 106 million new shares being issued at 33 cents.
The placement was managed by Euroz Hartleys and resulted in a number of overseas and local institutions joining the Lindian share register.
Following the placement, Lindian is now well capitalised to fund the construction of its stage 1 processing plant at Kangankunde.
Also during the quarter, the company’s chairman Asimwe Kabunga invested a further $500,000.
Lanthanein Resources
Lanthanein Resources Ltd (ASX:LNR, OTC:FRNRF) made significant progress during the September quarter, advancing its rare interests at the Lyons Project in the Gascoyne region of WA and the Murraydium Project in South Australia.
During the quarter, the company’s infill drilling program at the Lyons 12 & 13 prospects extended the known strike length of economic TREO mineralisation to 1,200 metres and remains open.
Meanwhile, at Murraydium, assays received from the 215-reconnaissance roadside air core drill holes on the Bordertown Block targeted REEs in the shallow Loxton Parilla Sands.
Loxton Parilla Sands is the same formation that hosts Australian Rare Earths Ltd’s Koppamurra Resource of 101 million tonnes at 818 ppm TREO.
Lyons Project
During the quarter, the company revealed the results of recent infill drilling completed at its Lyons Rare Earths Project.
The drill program targeted high-grade rare earth mineralisation previously discovered at the outcropping ironstones at Lyons 12 and 13.
Additional drilling of targeted priority high magnetic curvilinear trends where two 450-metre-deep diamond holes co-funded with $200,000 from the Department of Mines Industry Regulation and Safety (DMIRS) Exploration Incentive Scheme were completed to investigate the potential for large tonnage REE carbonatites similar to Lynas Corporation’s Mount Weld deposit in Western Australia.
A total of 93 RC and two diamond drillholes totalling 10,407 metres were completed testing both the known ironstones at surface, ironstone and carbonatite targets undercover.
Murraydium Project
During the quarter, the company announced the assay results from the roadside drilling program at the Murraydium Project.
The drill program targeted ionic clay hosted rare earths within the Loxton-Parilla Sands unit in a region that is host to an extensive mineralised system at Koppamurra.
A total of 215 aircore drill holes totalling 3,709 metres were completed.
Results confirm the REE regional prospectivity where 40 drill holes returned greater than 500 ppm TREO and five holes greater than 1000 ppm TREO.
OD6 Metals
OD6 Metals Ltd (ASX:OD6) had a busy September quarter, delivering a maiden mineral resource estimate (MRE) of 334 million tonnes at 1,308ppm TREO at its Splinter Rock Rare Earth Project – emerging as one of the largest and the highest-grade clay-hosted rare earth resources in Australia.
During the quarter, the company completed its phase 3 drilling at Splinter Rock, significantly expanding the Prop Prospect potential, with grades of up to 4,159 ppm TREO.
Cash balance at the end of the September quarter remains strong at A$2.03 million with an additional significant R&D tax rebate expected to be received in the current quarter.
“Another exciting quarter”
OD6 managing director Brett Hazelden said: “I’m pleased to report on what has been another exciting quarter of exploration and project advancement, culminating in the declaration of a large, high-grade maiden MRE at Splinter Rock.
“This immediately put us on the map with our Splinter Rock Project emerging as one of the largest and highest-grade clay-hosted rare earth resources in Australia.
“Our exploration team completed Phase 3 drilling, with a total of 145 total holes drilled for 7,435m. Initial results returned fantastic outcomes, with observed grades in combination with clay length and thickness significantly expanding Prop’s potential.
“We continue to prudently manage exploration spending, with our treasury position remaining strong which is anticipated to be further bolstered by a large R&D tax rebate during the current quarter.
“The OD6 team is excited for the next phase of project advancement where we delve into the pending results from the ANSTO mineralogy and metallurgical test work.”
MRE summary
OD6 revealed a maiden inferred mineral resource estimate (MRE) of 344 million tonnes at 1,308ppm TREO at 1,000ppm cut-off grade mineral resource estimate for its Splinter Rock Rare Earth Project.
The cut-off grade was chosen based on a preliminary review of the parameters that would likely determine the economic viability of an open pit operation and with a comparison with other clay-hosted REE deposits.
The key magnet rare earth elements neodymium, praseodymium, terbium and dysprosium are included individually as these four rare earths comprise the highest price and demand, driving the future economics of the project. The mineral resource is presented as elemental oxides (as opposed to elements) in accordance with current industry practice.
Phase 3 drill program
Phase 3 drilling is now complete at Splinter Rock, with 145 total holes drilled for 7,435 metres at about an average depth of 51 metres and a maximum depth of 104 metres.
Assays from the Centre prospect are due to be available at the start of November.
Meanwhile, ANSTO metallurgical results are due to be available in November.
Furthermore, real and substantial potential for mineral resource expansion based on these initial results.
Parabellum Resources
Parabellum Resources Ltd (ASX:PBL) has released its activity update for the September 2023 quarter, highlighting significant progress in its NSW copper-gold projects and maintaining a robust financial position.
During the quarter, the company re-evaluated its exploration strategy with respect to the NSW copper-gold projects following the completion of drilling in the December quarter and the subsequent release of results in June.
The focus during the quarter was on planning the aircore drilling program, including site visits and liaising with landowners for access.
Subsequently, a 2,000-metre aircore drilling program kicked off on October 13, 2023, and is scheduled to be completed within two weeks.
Moving forward, results from this program are expected in late November or early December.
$PBL Parabellum Resources demonstrates strong progress at NSW copper-gold projects https://t.co/Fu98jnpEu7 @ParabellumRes #PBL #ASX #ASXNews— Proactive Australia (@proactive_au) October 20, 2023
Khotgor REE Project
In Mongolia, the company remains a minority shareholder in the Khotgor Rare Earth Elements (REE) Project through its association with Temarise.
The latter exercised its option to acquire 80% of the project, with the exercise price set at US$15 million.
Payment terms have been extended to facilitate financing discussions.
Financial health and corporate strategy
Parabellum ended the quarter with A$2.4 million in cash reserves.
The board has implemented strict cost control measures, particularly in general and administrative expenses.
The focus remains on exploration, with no development or production activities reported in the September 2023 quarter.