Browns Range DFS Nears Completion with Capital Savings and New Exploration Targets

Context and Market Dynamics

Northern Minerals Limited (ASX, NTU) has delivered a comprehensive update on its Browns Range Heavy Rare Earths Project in the June 2025 quarter, underscoring the project's strategic importance amid a volatile global rare earths market. The company’s operations remain injury-free, reflecting strong safety governance, while advancing exploration and development activities in Western Australia and the Northern Territory.

Geopolitical tensions have intensified the spotlight on rare earths supply chains, particularly following China’s export restrictions earlier this year. These measures caused acute shortages and price volatility, reinforcing the urgency for diversified and secure sources outside China. Northern Minerals’ Browns Range project, rich in dysprosium and terbium; critical elements for advanced magnets in clean energy and defense technologies; is well positioned to meet this demand.

Project Development and Regulatory Milestones

During the quarter, Northern Minerals secured Works Approval W2943/2025/1 from the Department of Water and Environmental Regulation, enabling early construction activities including wastewater treatment and mobile crushing facilities. This regulatory progress is a key step toward project construction readiness.

The company also completed heritage surveys in collaboration with the Jaru people and the Central Land Council, ensuring respectful engagement with Traditional Owners and securing clearances vital for ongoing exploration and development.

Definitive Feasibility Study Nears Completion

The Definitive Feasibility Study (DFS) is approaching finalisation, with optimisation workstreams delivering material capital cost savings and refining the process plant flowsheet. Notable changes include a simplified grinding circuit, elimination of ore sorting equipment, and enhanced recovery rates based on variability flotation test work. These refinements are expected to reduce initial capital expenditure, de-risk commissioning, and streamline operations.

Mining strategy reviews confirmed robustness with modest cost savings incorporated. Meanwhile, metallurgical test work commenced on the Dazzler deposit to evaluate its potential as a high-grade blending feedstock alongside the Wolverine ore, although results from this program will be integrated post-DFS.

Exploration Advances and New Targets

Exploration drilling at the Dazzler deposit identified an extensive new heavy rare earths target at the contact between andesitic and metasedimentary units, supported by an updated litho-structural model that increases geological confidence. Similarly, diamond drilling at the Gambit deposit confirmed continuity of a structural corridor, highlighting further resource potential.

Additionally, Northern Minerals secured government co-funding for drilling at the Ripcord prospect, with initial holes underway. A geochemical soil sampling program covering over 700 samples was completed, and satellite hyperspectral imagery acquisition is scheduled to enhance regional targeting.

Corporate and Strategic Engagement

On the corporate front, Northern Minerals continues discussions with Iluka Resources regarding amendments to the terms of a convertible note, signaling ongoing financial structuring efforts. The company also engaged with Australian and international export credit agencies, reflecting growing interest in Browns Range’s alignment with national and global critical minerals strategies.

Overall, Northern Minerals’ June quarter report paints a picture of a project advancing steadily through technical, regulatory, and stakeholder milestones, set against a backdrop of tightening global supply and geopolitical complexity in the rare earths sector.