Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) continues to progress construction of the technical facility and demonstration plant at its Makuutu Rare Earths Project in Uganda from where it expects to produce its first mixed rare earth carbonate early in the first quarter of next year.
First production will mark a major milestone in the project’s development. Ionic intends to send that first mixed rare earth carbonate from the demonstration plant to potential customers and off-takers who have shown interest in partnering with the company to secure magnet and heavy rare earth product once Makuutu becomes an operational mine.
The company expects the mining licence for Makuutu to be awarded in the near term.
Makuutu’s basket contains 71% high value magnet and heavy rare earths content and is one of the most advanced heavy rare earth projects globally available as a source for new supply chains emerging across Europe, the US and Asia.
A busy end to 2023
The Makuutu Demonstration Plant technical facility will aim to further optimise metallurgical test work outputs and provide technical validation for the detailed review of the stage one definitive feasibility study (DFS) being undertaken by DRA Global.
Process commissioning is expected to start later this year once construction has been completed and equipment, which is now in transit from Australia, has been delivered and installed at the technical facility.
The delivery of test work equipment from Perth, split across two container deliveries, is expected to start this month and be completed next month so that the facility and laboratories fit out are completed by the end of 2023.
Ionic reports that grade control drilling on one of the two identified test pit locations is progressing well and is expected to be completed this month.
Momentum growing
Managing director Tim Harrison recently visited the site and says the progress at Makuutu has been pleasing with the growing momentum.
“The progress allows Ionic and [our local Ugandan operating entity, Rwenzori Rare Metals Ltd] to harness our processing innovations to accelerate and validate mine development with a clear plan to production and profitability.
“This demonstration plant at Makuutu is a key milestone for the supply chain engagement with product to be produced here likely to be sent to potential off-take partners in early 2024. Makuutu is a globally strategic resource for near-term development and long-term security of magnet and heavy rare earth oxide (HREO) supply.
“Our focus on the delivery of the Makuutu Heavy Rare Earths Project in Uganda positions us to provide a secure, sustainable, and traceable supply of magnet rare earth oxides. Along with our Ionic Technologies Belfast recycling facility, Makuutu is key to us harnessing our technology to accelerate mining, refining, and recycling of magnet and heavy rare earths that are critical for the energy transition, advanced manufacturing and defence.”
Grade control drilling at Makuutu Demonstration test pit site No1.
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