ABx Group (ASX: ABX) boosts REE area 230%

ABx Group Limited increased high-grade REE by a whopping 230 per cent following winter drilling results, expanding the mineralisation’s lateral extent by more than 4 kilometres at the Deep Leads project in Northern Tasmania.

The 150 new holes have extended REE 6km east and 1km west of Deep Leads where the Company has commenced its maiden estimation program following receipt of most of the assays.

The southwest trending channel delineated by holes DL403, DL450 and DL453 has been extended 750m westwards by hole DL520 that intersected 5m thickness of ionic adsorption clay REE mineralisation averaging 2,170 ppm TREO from 3m depth.

Tests on this channel mineralisation in hole confirmed that it can be easily processed at a low cost with extraction rates of 50 per cent to 75pc under standard leach conditions 1, the same as used in similar Chinese IAC REE deposits.

“Holes DL522 and DL531 confirmed that the northwest trending channel is well mineralised and holes across the western slopes between the northwest and southwest trending channels show a widespread series of well mineralised smaller channels,” Managing Director and CEO Dr Mark Cooksey said.

About ABx

In 2020, ABx’s 83%-owned subsidiary Alcore Limited produced aluminium fluoride samples consistent with commercial grades of aluminium fluoride used in aluminium smelters, without which the smelters cannot operate.

Alcore aluminium fluoride 

In 2021, Alcore achieved a world first by producing aluminium fluoride from smelter waste products, which not only increases profitability but will provide security of supply of this critically important ingredient for Australasian aluminium smelters whilst continuing to improve their environmental excellence. Australia is the only major aluminium producer without an aluminium fluoride plant and has relied on imports, mainly from China, which has recently stopped.

Operating margins for a 60,000 tonnes aluminium fluoride plant are estimated to be in the order of $50 million per annum at current prices of aluminium fluoride and projected operating costs, supplying Australasian smelters and exporting to several known smelters. 

Alcore plans to build its plant in Bell Bay, Tasmania. Once in production, Alcore can expand into advanced technologies, including lithium-ion batteries, high purity alumina, HF acid and fluorine gas. 

Rare earth elements (REE) discovery

In 2021, ABx confirmed its discovery of potentially ore-grade rare earth elements (REE) at its Deloraine bauxite project in northern Tasmania. This discovery is ideal for ABx because it is:

1. Rich in super-magnet rare earth metals, especially “neodymium”, which is the main component of super magnets that are essential strategic metals for electric vehicles, wind turbines, modern smartphones and military devices but are in short supply;
2. “Water soluble” ionic clay type of REE which can be developed quickly at low cost;
3. Shallow depth, typically 6 to 16 metres from the surface; and,
4. Free of radioactive elements thorium and uranium so it can be processed in any country.

ABx shares are one of only three exchange-listed opportunities globally for this ionic clay type of REE, which have hitherto been a significant contributor to China’s 86% control of the REE markets. Market capitalisations of ABx’s peer group companies in the REE exploration sector exceed $100 million.

New bauxite mine developments

ABx has completed the rehabilitation of its Bald Hill mine in northern Tasmania to better than the pre-mining land value, which is ABx’s paramount policy. ABx’s rehabilitation technology is a core strength.

ABx is moving to the nearby Fingal Rail project, which is more extensive and has better quality bauxite. ABx is keen to deliver Fingal Rail bauxite into two contracts by late 2021 or early 2022. Fingal Rail can grow to produce more significant revenues for ABx than Bald Hill’s $0.5 to $2 million EBITDA in past years.

ABx’s mining lease application for the Sunrise Bauxite Project is on the sizeable Binjour deposit located 115km west of Bundaberg Port in QLD. ABx is finalising transnational legal arrangements for the 50:50 joint venture with Rawmin Mining of India, which is funding the project and provides ABx with technologies to meet customer specifications and for large-scale shipping of bauxite, based on Rawmin’s 30 years of shipping of its bauxite from Indian river ports similar to Bundaberg Port.

ABx Group Limited (ASX: ABX) has received assays from most of its winter drilling campaign that expanded the lateral extent of REE mineralisation by 230% to 4.01 square km (see Figure 1).

ABx’s Deep Leads REE mineralisation is enriched in the more valuable permanent magnet type of REE and includes true ionic adsorption clay zones that achieve 50% to 75% leaching extraction rates, which are high extraction rates by world standards.

Table 1 Assay results for the 25 key discovery holes at Deep Leads

New drilling technologies were introduced during this winter drilling campaign, including push tube coring (see Figures 5 to 7), which will be further developed in the next drilling campaign.

The key “discovery” holes in Table 1 are those holes that have drilled through the full REE mineralisation horizon, which is typically 3m to 10m deep, 4m to 6m thick, 1,000ppm to 4,000ppm of total rare earth oxides (TREO) and 600ppm to 2,000ppm TREO-CeO2.

The REE mineralisation at Deep Leads is clay-hosted, often most concentrated in buried channel structures.

Deep Leads hosts the rare, true ionic adsorption clay (IAC) type of REE deposits and has excellent extraction rates of 50% to 75% of contained REE under low-cost processing 1

The 150 holes drilled in the winter campaign discovered REE mineralised intercepts over 7km x 4.6km (see Figures 1 and 2). Further drilling is planned for the coming month.

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