ABx Group has launched a new drilling campaign targeting extensions of its high-grade T8 rare earth discovery in northern Tasmania, focusing on critical elements terbium and dysprosium. Early drilling confirms shallow mineralisation with assays pending, highlighting the project's strategic potential amid global supply constraints.
- New drilling campaign underway to expand T8 rare earth mineralisation
- High grades of terbium (Tb) and dysprosium (Dy) confirmed near surface
- Shallow ionic adsorption clay deposits enable low-impact mining
- Strategic partnership with Ucore for US processing operations
- Assay results from recent drill holes are awaited
Expanding a Rare Earth Frontier
ABx Group Limited (ASX:ABX) has commenced a targeted drilling campaign to extend its promising T8 rare earth elements (REE) discovery in northern Tasmania. The campaign follows a scout drilling success earlier this year, which identified high-grade mineralisation enriched in critical heavy rare earths terbium (Tb) and dysprosium (Dy). These elements are vital for emerging technologies, including electric vehicles, renewable energy, and defence applications.
The initial three drill holes of the new program have intersected the mineralised horizon at shallow depths, typically within half a metre of the surface, confirming the presence of a near-surface ionic adsorption clay deposit. This style of deposit is notable for its relatively low-cost and low-impact extraction potential, a key advantage in environmentally sensitive agricultural landscapes.
Strategic Importance Amid Global Supply Challenges
ABx’s rare earth resources boast some of the highest grades of Tb and Dy found in Australia and rank among the best globally for ionic clay deposits. This is particularly significant as China continues to restrict exports of these critical heavy rare earths, creating supply chain vulnerabilities worldwide. ABx’s location in a stable jurisdiction like Tasmania positions it as a potentially reliable alternative supplier.
Managing Director Dr Mark Cooksey emphasised the strategic value of the discovery, noting the company’s ongoing efforts to develop rapid, low-impact mining methods. He also highlighted ABx’s memorandum of understanding with Ucore, a US-based processor planning a Strategic Metals Complex in Louisiana supported by the US government. This partnership underscores ABx’s ambition to integrate into Western supply chains for critical materials.
Technical Rigor and Forward Momentum
The announcement provides detailed geological and assay data, with sampling conducted at one-metre intervals and analysed by accredited laboratories in Brisbane and Perth. The mineralisation occurs in clay layers overlying Jurassic dolerite bedrock, with the deposit geometry well suited to vertical drilling. While assays from the latest holes are pending, the initial intersections suggest continuity of the high-grade horizon.
Beyond rare earths, ABx is advancing complementary projects including clean fluorine chemical production from aluminium smelter by-products and near-term bauxite mining in Queensland, New South Wales, and Tasmania. The company emphasizes sustainable practices, operating only on land where welcomed and aiming to leave the environment improved.
Looking Ahead
Shareholders and market watchers await the assay results from the new drilling campaign, which will be critical in defining the resource’s scale and grade continuity. ABx also anticipates updates on the first mixed rare earth carbonate sample produced by ANSTO from its Deep Leads bulk sample, a key milestone for customer engagement.
Bottom Line?
ABx’s shallow, high-grade rare earth discovery in Tasmania could reshape supply dynamics for critical metals amid global shortages.
Questions in the middle?
- What will the pending assay results reveal about the extent and grade of the T8 extensions?
- How quickly can ABx advance from exploration to low-impact production given regulatory and environmental considerations?
- What are the implications of ABx’s partnership with Ucore for securing downstream processing and market access?