Ionic Rare Earths (ASX:IXR) has received approval from the Uganda’s Directorate of Geological Survey and Mines (DGSM) for the renewal of retention licence (RL) 00007, as part of the Makuutu Rare Earths Project in Uganda, East Africa.
The company says the application for renewal of RL 00007 was lodged and approved within 2 weeks by Uganda’s DGSM and will be valid for a further 2 years while the company continues development of Makuutu alongside Ugandan private company Rwenzori Rare Metals. Ionic Rare Earths is the current 51% owner of Rwenzori.
The company adds on that RL 00007 is situated immediately south of the prospective exploration target located within tenement EL00257, where applications have been submitted for drilling to start this year to further define the scale of potential ionic clay mineralisation to the west of the Mining Licence Application (MLA).
In addition, the licence is also situated immediately west of RL 1693, which is also under the MLA, and is expected to provide the basis for additional capacity and organic growth at the project following commencement of initial mining and processing activity.
It is reported once the new exploration approvals are granted, the company intends to initiate a phase 5 drilling program at the project in order to move the current inferred Mineral Resource Estimate (MRE) to an indicated resource category.
As of 11am AWST Ionic Rare Earths’ share price had increased by 7.89%.
Addressing the renewal approval, Ionic Rare Earths’ Managing Director Tim Harrison says: “The rapid approval of the renewal of RL 00007, which occurred within 2 weeks of finalising the submission documentation, is another positive reflection of the strong support IonicRE and the project has within Uganda.
“The rapid approval of the renewal of RL 00007…is another positive reflection of the strong support IonicRE and the project has within Uganda”
As the company, via RRM, finalises the MLA at Makuutu for RL 1693, we remain confident that Makuutu will continue to grow and support a much large project.”
Ionic Rare Earths is an ASX-listed company that is set to become a miner, refiner and recycler of sustainable and traceable magnet and heavy rare earth oxides (REOs), which are needed to develop net-zero carbon technologies. The company’s flagship Makuutu project in Uganda is well-supported by existing Tier 1 infrastructure and is on track to become a long-life, low Capex, scalable and sustainable supplier of high-value magnet and heavy REOs.
The project currently has an inferred MRE of 39 million tonnes at 470ppm total rare earth oxide (TREO) and has the potential for a 50-plus year Life of Mine (LoM) following the company’s decision to deliver a ‘substantial’, 70% increase to the Mixed Rare Earths basket.
Images: Ionic Rare Earths Ltd & iStock
