Name of the Project
Makuutu rare earths project.

Location
Uganda, 120 km east of Kampala.

Project Owner/s
Ugandan company Rwenzori Rare Metals (RRM), which owns 100% of the Makuutu rare earths project. Ionic Rare Earths (IonicRE) is a 51%-owner of RRM and progressing to 60% with the completion of the definitive feasibility study (DFS). IonicRE also maintains a first right over the remaining 40% of the project.

Project Description
The Stage 1 DFS proposes an openpit mining operation at an annualised mining rate of five-million tonnes a year of mineralisation from the project for total rare-earth oxide equivalent production of 40 090 t.

The maiden ore reserve for Stage 1 over retention licence 1693 is 172.9-million tonnes grading 848 parts per million total rare-earth oxide (TREO) for 146 654 t of contained TREO.

Stage 1 envisages production of 1 300 t/y of rare earths in the first ten years, averaging 1 156 t/y over the estimated 35-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $406-million and internal rate of return of 32.7%, with a payback of about three years.

Capital Expenditure
The project has an initial capital expenditure of $120.8-million.

Planned Start/End Date
Construction started on a demonstration plant at the project in August 2023.

Latest Developments
IonicRE expects to produce its first mixed rare-earth carbonate from its new demonstration plant at the Makuutu project early in the first quarter of next year, which the company says will be a major milestone in the development of the project.

The development of the demonstration plant is a key milestone for supply chain engagement, with product to be produced locally, and likely to be sent to potential offtake partners in early 2024.

IonicRE has reported good progress on the construction of the technical facility and demonstration plant, which is being undertaken by the company’s local Ugandan operating entity Rwenzori Rare Metals Limited. The technical facility is aimed at further optimising metallurgical test work outputs and providing technical validation for the detailed review of the Stage 1 definitive feasibility study being undertaken by engineering firm DRA Global.

Delivery of testwork equipment from Perth, split across two container deliveries, is expected to start this month and be completed in December, allowing for the fit-out of the facility and laboratories before the end of the year.

Grade control drilling on one of two identified test pit locations is progressing well and is expected to be completed in November.

The product produced at the plant will likely be sent to potential customers and offtakers who have shown interest in partnering with the company to secure magnet and heavy rare earths product from the project once it becomes an operational mine.

Process commissioning is expected to start later this year once construction has been completed.

The company is also expecting the near-term award of the mining licence for Makuutu.

Key Contracts, Suppliers and Consultants
RRM (installation contract); and DRA Global (DFS review).

Contact Details for Project Information
IonicRE, tel +61 3 9776 3434 or email admin@ionicre.com.