ABx Group (ASX:ABX) has posted a resource estimate of more than 50 million tonnes (Mt) for its Deep Leads-Rubble Mound rare earths project in Tasmania.
The $16.96 million market capitalisation company says the resource sits at 52Mt averaging 817 parts per million (ppm) total rare earth oxides (TREO) from 39% of the mineralised outline. It marks the first comprehensive block model resource estimation of the Deep Leads-Rubble Mound rare earth resources.
ABx reports the resource demonstrates a ‘remarkably high’ proportion of dysprosium plus terbium, averaging 4.4% of TREO, with some blocks exceeding 6%.
The company notes that these results represent the highest proportion of any clay-hosted rare earths resource in Australia.
ABx states the resource model is based on data from 407 drillholes across the resource area and, because it models all intercepts to date, highlights 4 ‘high-grade’ zones that warrant follow-up.
Drilling is currently in ‘full swing’ at the project.
As of 1:50pm AEDT, ABx Group’s share price had increased by 7.142% to $0.075.
Managing Director and Chief Executive Officer (CEO) Mark Cooksey says the block modelling represents a ‘significant’ step towards the commercial assessment of its Tasmanian assets.
“ABx’s resource is exceptionally enriched in permanent magnet rare earths, especially dysprosium and terbium, which have the highest supply risk and are almost exclusively produced ion ionic adsorption clay rare earth deposits.”
ABx Group is a high-tech Australian company focused on the creation of an ionic adsorption clay rare earth project in northern Tasmania and establishing a plant to produce hydrogen fluoride and aluminium fluoride from recycled industrial waste.
As of 30 September, the company had $6.896 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: ABx Group