ABx Uncovers New Rare Earth Province Rich in Terbium and Dysprosium in Tasmania

• Scout drilling intersected high-grade rare earth mineralisation with up to 5,318 ppm TREO near surface
• Terbium and dysprosium grades among the highest globally for ionic adsorption clay deposits
• Discovery located 52 km east of ABx’s Deep Leads resource in northern Tasmania
• Strategic positioning to supply US market amid executive orders promoting domestic critical minerals processing
• Tasmanian government co-funded exploration through EDGI grants supporting bold initiatives

Strategic Discovery in Tasmania

ABx Group Limited (ASX: ABX) has announced a significant breakthrough in its rare earth exploration program with the discovery of a new rare earth province located 52 kilometres east of its established Deep Leads resource in northern Tasmania. The scout drilling campaign, comprising eight holes, intersected high-grade rare earth element (REE) mineralisation near surface, notably enriched in terbium (Tb) and dysprosium (Dy), two critical heavy rare earths essential for permanent magnets used in military technologies and offshore wind turbines.

The standout hole, TB008, returned an exceptional total rare earth oxides (TREO) grade of 5,318 ppm at just one metre depth, underscoring the shallow and accessible nature of this mineralisation. This discovery is particularly notable given the grades of Tb and Dy in ABx’s resources are among the highest globally for ionic adsorption clay deposits, positioning ABx uniquely in the global rare earth supply chain.

Global Supply Chain Context

This development comes at a pivotal time as geopolitical dynamics reshape the rare earths market. The US government has issued executive orders incentivising domestic processing of critical minerals, including rare earths, aiming to reduce reliance on China. Concurrently, China has imposed export restrictions on heavy rare earths such as dysprosium and terbium, which it dominates in production. ABx’s Tasmanian deposits, located in a stable jurisdiction, offer a compelling alternative supply source.

ABx’s existing relationships with US-based processing companies, including a memorandum of understanding with Ucore for feedstock supply to a planned Strategic Metals Complex in Louisiana supported by the US government, further enhance its strategic positioning. This alignment with US policy initiatives could accelerate ABx’s pathway to market and strengthen supply chain resilience for critical rare earths.

Exploration Technology and Future Potential

The discovery was enabled by ABx’s proprietary exploration technology, which successfully identified rare earth targets across previously unexplored tenements EL27 and EL28. The scout drilling employed a low-impact auger rig, suitable for shallow sampling but limited in depth penetration. Despite this, the campaign confirmed high-grade mineralisation, with several holes ending in mineralised layers, indicating potential for substantial resource expansion.

ABx acknowledges the support of the Tasmanian government’s Exploration Drilling Grant Initiative (EDGI), which co-funded 50% of the drilling costs, reflecting strong local backing for advancing Tasmania’s rare earth sector. The company plans to deploy more powerful drilling rigs subject to landholder approval to better define the extent and continuity of this new province.

Environmental and Community Considerations

ABx emphasises its commitment to sustainable and responsible mining practices. The rare earth mineralisation occurs in shallow clay layers overlying Jurassic dolerite, primarily on sheep and cattle grazing land with excellent infrastructure access. ABx has over 15 years of experience working with local graziers, ensuring operations leave the land in better condition and adhere to sound agricultural practices.

Market Implications and Outlook

Terbium and dysprosium prices have surged significantly, with terbium rising 42% year-to-date to US$1.98 million per tonne and dysprosium up 29% to US$0.454 million per tonne, reflecting escalating demand for these critical metals. ABx’s discovery of a high-grade, shallow deposit enriched in these elements could provide a timely and strategic supply source amid tightening global markets.

Managing Director Dr Mark Cooksey highlighted the global significance of the discovery, noting ABx’s mission to develop a low-cost, low-impact extraction method for this rare earth province. The company’s progress places it at the forefront of Australia’s rare earth sector during a period of intensifying global demand and supply chain realignment.

Bottom Line?

ABx’s new rare earth province discovery could redefine Tasmania’s role in the global critical minerals landscape as geopolitical tensions reshape supply chains.

Questions in the middle?

• How will ABx advance from scout drilling to resource definition with more powerful rigs?
• What are the timelines and challenges for establishing processing partnerships in the US?
• How might evolving US-China trade policies further impact ABx’s market opportunities?