Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) is clear to kickstart a phase five drill program at its 60% owned Makuutu rare earths project in Uganda.
The critical minerals explorer received the greenlight from the National Environment Management Authority (NEMA) to begin an infill and reconnaissance drilling campaign, designed to prove up inferred resources and increase confidence in Makuutu’s exploration targets.
Ionic expects to set the drill bit spinning in May, with both a diamond and rotary air blast model booked to complete the program.
The explorer will turn up more than 4,300 metres of drill core to support a resource upgrade on its RL00007 retention licence, as well as 2,200 metres of rotary air blast material to evaluate Makuutu’s exploration targets.
Targeting future growth
With further resource growth on the cards, Ionic managing director Tim Harrison said the long-term exploration potential at Makuutu is “immense”.
“Given the positive stage one definitive feasibility study (DFS), the progress on the demonstration plant, and the pending mining licence award, the company has an eye to further growth to support the next mining lease application (MLA) on the Makuutu western zone, due to be submitted later in 2024.”
“This new exploration program will help us support the next MLA, as well as refine our potential growth targets to the east at the massive EL00147 target, and the new north-western target at EL00257.”
Big picture
Makuutu currently ranks among the world’s largest ionic adsorption clay (IAC) deposits, and as such, a globally strategic resource that facilitates near-term, low-capital development and magnet and heavy rare earth (HREO) supply is a clear priority.
Makuutu is made up of six tenements, and the project’s central property was the only tenement used to support the recently announced stage one DFS.
In essence, the study indicates Makuutu would have an initial 35-year mine life, generate A$2.29 billion in earnings and carry an IRR of 32.7%.
With the five remaining tenements yet to be factored into feasibility work, Ionic believes that Makuutu has substantial scope for future growth.
On a geopolitical scale, the project could become a major source of critical minerals like magnet and heavy rare earths — a particularly important consideration amid strong demand for growing and diversified supply chains.