Ionic Rare Earths (IonicRE) has announced positive outcomes from the Scoping Study completed on its 51%-owned Makuutu Rare Earths Project in Uganda.
The Scoping Study outcomes demonstrate the potential for Makuutu to become a sustainable, long-life, relative low capital development cost supplying critical rare earth oxide to global markets, generating strong financial returns while also delivering significant social and economic benefits for the local communities in Uganda.
Earlier this month the company signed a non-binding MoU with Aluminium Corporation of China subsidiary, China Rare Metals and Rare Earth (Jiangsu) (CHINALCO) in relation to the development of the project.
At the time IonicRE MD Tim Harrison commented:
“We welcome the involvement of CHINALCO and their ionic clay and rare earths separation arm China Rare Earths Jiangsu. Their knowledge on ionic adsorption clays is second to none, and their involvement would also greatly enhance and accelerate the planned development of Makuutu.”
“We greatly welcome their expertise in de-risking the technical development and engineering, maximising the strategic value of Makuutu and its importance in the longer-term global rare earths supply chain.”
Commenting on the positive results of the Scoping Study Harrison says:
“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.”
“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 70-75% 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.”