ABx Group Expands High-Grade Rare Earth Elements Resource in NW Block
ABX (ABX) Share Update August 2024 Thursday 8th
ABx Group Announces Significant Expansion in Rare Earth Elements Resource
ABx Group (ASX: ABX) has announced a significant expansion in its high-grade rare earth elements (REE) resource in the NW Block of its Deep Leads project, located in Tasmania. The new findings include thicker mineralisation and higher grades of dysprosium (Dy) and terbium (Tb), two of the most critical heavy rare earth elements.
Instant Summary:
- 37-hole drilling campaign expands resource outline in NW Block.
- High-grade mineralisation enriched in Dy and Tb.
- Dy+Tb exceeds 4.3% of total rare earth oxides (TREO).
- Favourable ore geometry for land restoration.
- Desorption tests show over 50% extraction using low-acid conditions.
Drilling Campaign Results
ABx Group has completed a 37-hole drilling campaign in the NW Block of its Deep Leads project, located 45 km west of Launceston, Tasmania. The campaign has significantly expanded the resource outline, revealing thicker mineralisation and higher grades of dysprosium (Dy) and terbium (Tb).
ABx Group's strategy focuses on producing a mixed rare earth carbonate (MREC) enriched in Dy and Tb, two heavy rare earths with the highest supply risk. The Dy+Tb content in the Deep Leads resource exceeds 4.3% of the total rare earth oxides (TREO), which is the highest proportion of Dy and Tb of any clay-hosted rare earth resource in Australia and is considered high by global standards.
Favourable Ore Geometry
The rare earths layer in the NW Block is typically 4 to 7 meters thick, located beneath 2 to 5 meters of clay and soil. This geometry is ideal for restoring mined areas to productive, fertile land, making the project environmentally sustainable.
Desorption Extraction Results
Desorption tests conducted on hole DL520, the nearest hole to the new drill holes, showed over 50% extraction of rare earths using low-acid (pH 4) conditions. These results were confirmed by the Australian Nuclear Science and Technology Organisation (ANSTO) and in-house tests.
Interpretations and Future Plans
The drilling results indicate that the Deep Leads plateau is well mineralised with REE-rich zones that have high extraction rates. The NW Block appears to be an extension of this mineralisation. Future plans include step-out drilling over a wider area to further expand the resource.
The expansion of the high-grade rare earth elements resource in the NW Block is a significant development for ABx Group. The high Dy+Tb content and favourable ore geometry make the project economically and environmentally sustainable. This announcement is likely to positively impact the company's stock as it strengthens its position in the rare earth elements market.
Investor Reaction:
Analysts are expected to react positively to this announcement, given the high grades of Dy and Tb and the potential for further resource expansion. The favourable ore geometry also adds to the project's attractiveness, making it a promising investment opportunity.
Conclusion:
Investors should keep an eye on ABx Group's future drilling results and the potential for further resource expansion. The company's strategic focus on high-grade rare earth elements and sustainable mining practices positions it well for long-term growth in the rare earth elements market.