ABx Group (ASX:ABX) is focusing on economic studies to identify the optimum project design at its Deep Leads project in northern Tasmania, and is conducting metallurgical work in-house and with partners to support these studies.
CEO Dr Mark Cooksey tells Mining.com.au that exploration will also continue, to grow the resource and identify the preferred starting location for the project.
“ABx continues to engage with several customers and is aiming to secure binding agreements with some of these customers. Investment into ABx is also being discussed,” Cooksey tells this news service.
ABx has reported resource growth and exceptionally high proportions of dysprosium and terbium – the elements with some of the highest supply risk – at its Tasmanian clay rare earths project.
The CEO says it can be a balancing act regarding strategic interest from governments in securing supply for defence and technology applications with the need to keep the company’s commercial strategy flexible and market-driven.
“The defence sector is simply one market for rare earths, albeit a very important one. ABx seeks a range of applications and customers to create the most robust business,” he adds.
The company is progressing next steps including a planned 39-hole drilling program at its T8 discovery in late 2025 and large-batch testing for a mixed rare earth carbonate (MREC) product.
As Cooksey explains to Mining.com.au, the major strategic decision for ABx is whether to produce an intermediate product, such as an MREC, or move further downstream to produce separated rare earth oxides.
“ABx is in the fortunate position where it is likely to be able to produce an MREC with relatively low capex. Thus it is not necessary to also have a separation plant,” the CEO continues.
“Initially, to minimise capex and risk, ABx is likely to produce an MREC and sell this to separation plants in Australia or internationally.”
The news comes as the ASX was lower today (29 January), on the back of a sell-off in mining companies on the back of reports that US President Donald Trump is stepping away from a guarantee of a minimum price for US critical minerals projects, including rare earths.
At 2pm AEDT, the S&P/ASX 200 Index was down by 39.10 points (or by 0.4%) with 10 of the 11 sectors taking a hit.
Shares in major rare earth producers slumped after the unconfirmed reports by the US scrap a set price floor for REEs. ABx share were down 8.14% as of 2.30pm AEDT.
Global supply chains
Globally in the rare earths space, governments and subsidy programs often favour certain processing technologies or preferred supply chain partners. This means systems and processes need implementing in order to retain control over development pathways and does not get boxed into policy-specific expectations.
Cooksey says ABx is foremost focused on identifying the best customers for its products, and advocates policies to governments that support its strategy for engaging with customers.
ABx recorded ‘outstanding’ results from two rare earth column leach tests conducted by the Australian Nuclear Science and Technology Organisation (ANSTO) as part of ongoing metallurgical studies at the Deep Leads project, as reported.
Column tests were conducted on 26km bulk samples and results indicate over 80% extraction of ‘high-value’ heavy rare earths, including dysprosium and terbium, exceeding the company’s expectations and confirming that high extractions can be achieved using a range of flowsheet options.
Cooksey notes the results are better than anticipated, adding the results suggest that heap leach could be superior to tank leach.
ABx is likely to engage ANSTO for another MREC sample from the product solutions from these column leach tests that are similar to the maiden sample produced in December, as previously reported.
These results will inform the process flowsheet studies being conducted in conjunction with engineering partners.
Write to Adam Orlando at Mining.com.au
Images: ABx
