The retention licence (RL) for rare earths mining and exploration company Ionic Rare Earths’ (IonicRE’s) Makuutu project, in Uganda, has been renewed for a further two years. 

The RL allows the company to hold on to the land and the mineral rights for two more years, during which it can continue to explore and develop mining operations. After the retention period is over, the company must either begin mining operations, relinquish the rights to the land or apply for an additional extension. 

Makuutu is being developed by Rwenzori Rare Metals (RRM), a Ugandan private company which owns 100% of the Makuutu project. IonicRE is a 51% owner of RRM and is moving towards 60% ownership, with a first right over the remaining 40%. 

The licence in question, RL 00007, covers the Makuutu Western Zone (MWZ), and contains an inferred resource of 39-million tonnes at 470 ppm total rare earth oxides. 

The licence is located immediately west of RL 1693, which is currently under mining licence application (MLA) and will provide the basis for additional capacity and organic growth at Makuutu once initial mining and processing activity begins. 

This renewed RL is also immediately south of a prospective exploration target, where applications have been submitted for drilling to start this year to further define the scale of potential ionic clay mineralisation to the west of the MLA area.

Once these new exploration approvals have been granted, the company intends to initiate the Phase 5 drill programme at Makuutu to move the resource to an indicated resource classification. 

“The rapid approval of the renewal of RL 00007, which occurred within two weeks of finalising the submission documentation, is another positive reflection of the strong support IonicRE and the project has within Uganda.  

“As the company, via RRM, finalises the MLA at Makuutu for RL 1693, we remain confident that Makuutu will continue to grow and support a much larger project,” IonicRE MD Tim Harrison says.