Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) is advancing its phase 5 drill program ahead of schedule at the Makuutu Rare Earths Project in Uganda, which is ranked as one of the world’s largest and most advanced ionic adsorption clay (IAC) rare earth element (REE) deposits.
The company’s reconnaissance drill (RAB) program on EL00147 comprised 45 holes across 931 metres to an average drill hole depth of 21 metres.
Meanwhile, RAB drilling on EL00257 kicked off with 51 of 76 holes planned for 1,078 metres drilled to an average drill hole depth of 21 metres.
A diamond drill rig is planned to be mobilised to the site at the end of the month to begin infill drilling at RL00007, aiming to increase resource classification to an indicated resource.
Furthermore, new mining regulations are expected to be approved for Uganda in June 2023 to support the completion of Makuutu’s mining licence application.
Define potential for further growth
IonicRE managing director Tim Harrison said: “The drill program is progressing and follows on from the encouraging results the company identified when last drilling on this tenement.
“The second drill rig is due to be mobilised later this month, progressing core drilling of infill holes at RL00007 and we are confident this program will upgrade the inferred resource to indicated resource category.”
“The strategic focus of this Phase 5 exploration program is to further define the potential for further growth at Makuutu plus also support increased confidence on the next MLA area on RL00007.
“Growing the resource and defining more growth potential is a key discussion point with several potential strategic partners looking at securing the potential product from Makuutu to underpin their heavy rare earth demands in the near term to support the new economy of electrification, advanced manufacturing, and defence.
“We are also patiently awaiting approval of the new mining regulations in Uganda and, having been involved in several discussions with key Uganda stakeholders, we remain positive on near-term approval of our MLA for the Stage 1 development at Makuutu on RL 1693 (now TN03834).”
Potential growth targets
The reconnaissance RAB drilling as part of the Phase 5 drilling program is part of a sequential program to define areas of further growth at Makuutu, supporting the potential growth targets to further extend the resource along the 37-kilometre-long mineralised corridor on the company’s tenements.
With the addition of the other tenements at Makuutu, the larger consolidated project has substantial scope for future growth, and increasing geopolitical importance, to underpin the establishment of western sources for new magnet and heavy rare earth supply chains.
The core drilling across RL00007 also is a requirement to increase the resource classification of existing resources to support the next planned mining licence application at the larger Makuutu project expected before the end of November 2024.