ABx Group Ltd. has made a major breakthrough at its Deep Leads project in northern Tasmania, discovering several new areas of high-extraction ionic adsorption clay rare earths.
The discovery has fast-tracked the project into the development stage, with the company aiming for commercial production within months of final approval.
The results, validated by both internal testing in Launceston and the Australian Nuclear Science and Technology Organisation (ANSTO), confirm that the deposit contains “true” ionic clays.
Unlike hard-rock deposits, these clays can be processed using a low-cost, three-step leaching method. ANSTO tests on bulk samples achieved extraction rates exceeding 80 per cent.
“My jaw dropped when I saw these leach test results,” said Dr Mark Cooksey, Managing Director and CEO of ABx Group.
“Ionic deposits are likely to be substantially lower on the cost curve than other clay-hosted deposits. Ionic deposits also appear to be very rare, especially in tier 1, dependable jurisdictions like Australia.”
The move comes at a critical time for Western supply chains. Rare earth permanent magnets, essential for electric vehicles, wind turbines, and smartphones, account for 90 per cent of the market’s value.
ABx’s product is particularly enriched in dysprosium (Dy) and terbium (Tb), the two most valuable rare earth elements.
The economic outlook for the project is bolstered by a 34 per cent rise in the basket price of ABx’s mixed rare earth carbonate (MREC) over the last three months.
Notably, European prices for dysprosium and terbium oxides are currently more than four times higher than those on the Shanghai Metal Market.
The discovery of high-extraction samples over two kilometres away from previously known zones suggests the deposit is far more extensive than originally thought.
ABx is now focused on engineering studies to cement its goal of becoming Australia’s first producer of ionic clay MREC.
ABx will continue to conduct in-house leach testing on drill samples. The company is aiming to start commercial production of a MREC as soon as possible.