Following China’s imposition of immediate export controls on key heavy rare earths, ABx Group (ASX:ABX) is looking to progress its drilling program for new mineralisation on an exploration licence in Temple Bar, in northern Tasmania.
The tenement is unexplored for rare earths and sits immediately south of the company’s Portrush REE discovery, where a drillhole returned an assay result of 4,812 parts per million (ppm) total rare earth oxide (TREO).
ABx, which has a market capitalisation of $10 million, says due to the tenement being large, an easily transporter trailer-mounted lightweight geotechnical auger rig is being used.
The rig has capability to penetrate the full depth of the designated tenement of the rock formation within the soil and clay horizon.
Further, ABx notes if the auger samples show evidence of potentially economic rare earths mineralisation, a “more powerful” rig will be deployed, subject to landholder approval.
Drilling targets have been identified by the company’s latest bespoke remote sensing exploration technology. The technology aims to accelerate exploration for rare earths and was initially tested on the existing resource at the Deep Leads and Rubble Mound project.
CEO Dr Mark Cooksey says the current campaign will explore new ground with strong geological potential and advance the company’s strategy to become a long-term supplier of rare earths.
“These developments put ABx at the forefront of Australia’s rare earths sector at a time of escalating global demand,” Cooksey says.
This news comes after the US issued two executive orders to incentivise the processing of critical minerals, including rare earths, in the country.
During the same period, China’s Ministry of Commerce and the General Administration of Customs jointly imposed immediate restrictions on the export of dysprosium and terbium. Both of these minerals are critical for high-performance magnets used in military technologies and offshore wind turbines.
ABx says China currently dominates the global rare earth market, refining nearly 100% of the global dysprosium and terbium.
The company adds that these export controls have further highlighted the urgency for alternative, secure, and sustainable sources of these critical minerals.
ABx is positioned to meet this challenge and opportunity as the company has an ionic absorption clay rare earth resource with high heavy rare earth content in Tasmania and has strong relationships with potential processing operations in the US, such as Ucore.
The Deep Leads Project’s resource contains 89 million tonnes @ 844ppm TREO. The deposit also contains 36ppm dysprosium and terbium, which positions the company well to supply a mixed rare earth carbonate containing heavy rare earth content to customers seeking to diversify their supply sources.
Cooksey notes that China’s latest move to restrict exports sends a clear message to the global market.
“ABx is in a fortunate position with a high-grade, clay-hosted rare earth deposit in a stable jurisdiction, with particularly high concentrations of dysprosium and terbium,” he says.
ABx Group is an Australian mining company focused on rare earths, hydrogen fluoride, aluminium fluoride, and bauxite.
Write to Aaliyah Rogan at Mining.com.au
Images: ABx Group
