Australian Rare Earths Limited - Quarterly Activities Report - 30 July 2024
AUSTRALIAN RARE EARTHS LIMITED (AR3) Share Update July 2024 Monday 29th
Australian Rare Earths Announces Key Developments in Rare Earths and Uranium Projects
Australian Rare Earths Limited (ASX: AR3) has released its quarterly activities report for the three months ended 30 June 2024, highlighting substantial advancements in its rare earths and uranium projects.
Instant Summary:
- High recoveries of magnet rare earths (MRE) up to 72% achieved.
- New high-grade mineralisation discovered north of Koppamurra Resource.
- Shallow clay-hosted rare earth mineralisation identified 60 km south of Koppamurra Resource.
- Option Agreement to purchase 100% of Valrico Resources Pty Ltd for the Overland Uranium Project.
- Additional exploration license applications submitted for uranium prospects.
- Strong cash position of $7.8 million as of 30 June 2024.
Koppamurra Rare Earths Province
During the quarter, AR3 made significant advancements in the Koppamurra Rare Earths Province. The company achieved high recoveries of magnet rare earths (MRE) up to 72%, ranging from 43% to 72%. This was accomplished through a progressive heap leach and rapid rehabilitation approach, which offers lower costs and improved sustainability compared to traditional tank leaching methods.
Additionally, extensional drilling discovered new high-grade mineralisation north of the Koppamurra Resource, and a regional hand auger program identified shallow clay-hosted rare earth mineralisation up to 60 km south of the resource. An updated Mineral Resource and Exploration Target is planned for Q3 2024.
Strategic Extension of Clean Energy Transition Metals Portfolio - Uranium
AR3 has broadened its clean energy transition metals portfolio with an Option Agreement to purchase 100% of Valrico Resources Pty Ltd for the Overland Uranium Project. The project comprises ELA 2024/14 and ELA 2024/15, totaling 1,981 km² in the Murray Basin, SA. AR3 has also submitted an additional ELA 2024/22, increasing the total project area to approximately 3,000 km² once granted.
Multiple high-potential targets for exploration have been identified at the Overland Project, which is located within the same basin as exploration grounds taken up by Boss Energy and Orpheus Uranium. Subsequent to the end of the quarter, AR3 applied for additional exploration licenses for the Triggs Bore and Hamilton Creek prospects, which show indications of uranium mineralisation.
North Queensland Rare Earths Projects
Applications are pending for an additional 800 km² of exploration tenure in North Queensland, including the Forty Mile Scrub, Sandy Tate, and Oaky Valley prospects within the Kennedy project area. The final tenement EPM28166 was granted in the Dalrymple Project area during the quarter.
Corporate Updates
AR3 maintained a strong cash position of $7.8 million as of 30 June 2024. The company also submitted feedback to the Australian Government’s Critical Minerals Production Tax Incentive Consultation paper, advocating for the inclusion of Mixed Rare Earth Carbonate (MREC) production as an eligible activity under the proposed CMPTI.
Commenting on the quarter, Managing Director and CEO Travis Beinke expressed optimism about the progress made and the potential for significant value creation for shareholders in the coming years.
The advancements in rare earths and uranium projects are likely to positively impact AR3's stock, as these developments enhance the company's portfolio and potential for future growth. The strong cash position and strategic focus on clean energy transition metals further bolster investor confidence.
Investor Reaction:
Analysts are likely to react positively to the high recoveries of magnet rare earths and the discovery of new high-grade mineralisation. The expansion into uranium projects aligns well with the global shift towards clean energy, potentially attracting more investor interest.
Conclusion:
Investors should keep an eye on AR3's upcoming updates, including the revised Mineral Resource and Exploration Target in Q3 2024. The company's strategic moves in rare earths and uranium projects position it well for future growth and value creation.