Ionic ups stake in Makuutu to 46pc, focuses on scoping study
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Special Report: Ionic Rare Earths has increased its ownership in the unique Makuutu ionic clay rare earths project in Uganda to 46 per cent on the back of recent milestones.
Notable milestones include the June 2020 resource upgrade to 78.6 million tonnes (Mt) grading 840 parts per million (ppm) total rare earth oxides (TREO), metallurgical test work demonstrating a several fold increase in rare earth extractions using simple techniques, and the restart of drilling.
Ionic Rare Earths (ASX:IXR) has also raised $3.5m through an oversubscribed $2.5m placement and $1m share purchase plan that was oversubscribed and scaled back.
The company continues to progress towards an agreed minimum potential ownership of 60 per cent and is focused on completing a scoping study for the project before November to support renewal of the retention licence.
Ionic recently started the Environmental and Social Impact Assessment while continuing strategic partnership discussions.
The company is looking at all its options, from direct investment, integration with existing supply chains and offtake.
Drilling to upgrade resources at Makuutu, which has an ionic clay-style of mineralisation that is rare outside of China, is off to a rousing start with all five of the extensional holes drilled to date intersecting mineralisation above the cut-off grade of 300ppm TREO less cerium.
Extension drilling is aimed at increasing the size of the resource at Makuutu by drilling out the exploration target of between 270Mt and 530Mt grading 0.04 per cent to 0.1 per cent TREO.
Extension drilling is continuing with 143 drill holes totalling 2,344m of the planned 3,700m program completed to date.
This article was developed in collaboration with Ionic Rare Earths, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.