THE DRILL SERGEANT: Ionic Rare Earths (ASX: IXR) reported outcomes from a Scoping Study completed on the company’s 51 per cent-owned Makuutu rare earths project, located east of Kampala, Uganda.
Ionic Rare Earths declared the Scoping Study outcomes have demonstrated potential for Makuutu to become a sustainable, long-life, relative low capital development cost supplying critical rare earth oxide (CREO) and heavy rare earth oxide (HREO) to global markets, generating strong financial returns while also delivering important social and economic benefits for the local communities in Uganda.
“The results reinforce not only the significant strategic value of an ionic adsorption clay deposit like Makuutu and the basket it can potentially produce, but the potential long-life free cash flow generating potential achieved with the modular, low capital intensity development plan and simple operation indicated in the Study,” IonicRE managing director Tim Harrison said in the company’s ASX announcement.
“The completion of this Study with its positive project economics represents a critical milestone for the company.
“Combining the long life potential, with the low-cost modular capital development and high margin basket potential at Makuutu, confirms the project as one of the best potential new sources of critical and heavy rare earths in the near term.
“We see this project as technically and financially robust and eminently financeable, and the company has received strong expressions of interest from strategic parties interested in accessing Makuutu’s unique basket composition that contains approximately 70 to 75 per cent critical and heavy rare earths.
“We look forward to advancing this project expeditiously towards production that will see IonicRE transition from an exploration company to a producer.”
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