ABx Group Increases REE Resource and Claims New Discovery
THE DRILL SERGEANT: ABx Group (ASX: ABX) has increased the rare earth elements (REE) Resource at the company’s ionic adsorption clay rare earth project in northern Tasmania.
Abx Group announced a 30 per cent increase to the Northern Tasmanian-based Deep Leads and Rubble Mound ionic adsorption clay (IAC) REE Mineral Resource Estimate to 27 million tonnes.
The increase came on the back of assays from 36 drill holes, which the company claimed to have discovered new deposits, increasing the potential for mineralisation to extend over 16 kilometres to the earlier Wind Break discovery.
Of the 36 holes drilled, 69 per cent returned resource grade assays, which Abx noted to be above average for such wide spaced scout drilling in new areas.
“Our northernmost discovery hole, RM302, located five kiolmetres NE of Deep Leads could become our best prospect because it is 11 metres thick and enriched in permanent magnet rare earths, especially dysprosium (Dy) and terbium (Tb),” ABx Group managing director and CEO Mark Cooksey said in the company’s ASX announcement.
“These are highly valuable rare earths and almost exclusively produced from IAC deposits.
“Hole RM302 also indicates that this IAC rare earth mineralisation could extend 16 kilometres to the Wind Break discovery in our new exploration licence application.
“In addition, it is important to note that the cost of extracting rare earths from IAC deposits is highly dependent on the desorption process conditions.
“‘Standard’ desorption conditions include 30 minutes at pH 4 (same acidity as apple juice).
“The ABx deposits have the highest reported extractions under these conditions for any IAC rare earth resource in Australia.
“For other deposits requiring more acidic conditions, the production cost is likely to be substantially higher.
“Not all clays are created equal and very few clay-hosted REE deposits globally are amenable to low-cost benign production methods.”
Abx said its recent exploration activity has increased the target area from 35 square kilometres at Deep Leads-Rubble Mound to over 100sqkm, which also covers the Wind Break discovery.
Subject to a new exploration licence application being granted, ABx indicated it will commence ground exploration of the area, which is anticipated to lead to exploration drilling programs.
ABx is being more selective and targeted in the types of deposits that it will test by drilling.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE