Name of the Project
Makuutu rare earths project.

Location
Uganda, 120 km east of Kampala.

Project Owner/s
Ionic Rare Earths (IonicRE).

Project Description
A base case scoping study has demonstrated the potential for Makuutu to become a sustainable, long-life operation, supplying critical rare earth oxide and heavy rare earth oxide to global markets and generating strong financial returns while delivering significant social and economic benefits for the local communities.

The study proposes openpit mining over an initial 11-year mine life, with the ionic adsorption clay run-of-mine (RoM) fed into a modular heap-leach plant, where the rare-earth oxide (REO) is recovered from the ionic adsorption clay mineralisation using salt desorption to produce a mixed rare earth carbonate product.

The first module will process 2.5-million tonnes a year RoM and produce about 800 t/y REO equivalent product.

Additional modules will be added in years 2, 4, 6 and 9 to increase the plant throughput up to 12.5-million tonnes by Year 10.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $321-million and an internal rate of return of 38%, with a payback of about five years.

Capital Expenditure
Total capital expenditure (capex) is estimated at $301-million.

Preproduction capex, including contingency, is estimated at $89-million for Module 1, including the mining fleet.

The Module 2 expansion in Year 2 is estimated at $40-million.

The expansion from Module 2 to 5, estimated at about $172-million, will be funded from project cash flow.

Planned Start/End Date
Not stated.

Latest Developments
IonicRE has mobilised a third drill rig at the Makuutu project.

The company is undertaking a 5 700 m Phase 4 infill drill programme at the project.

The Phase 4 drilling is aimed at identifying additional rare earth element-bearing clay mineralisation extensions adjacent to Makuutu, as well as at converting inferred resources to indicated and measured resources, which will underpin a feasibility study for the project.

IonicRE is focused on completing a feasibility study and supporting activities to apply for a mining licence before November 1, 2022.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
IonicRE, tel +61 8 9481 2555.