Magnetite Mines Unveils New Rare Earth Finds at Ironback Hill Ahead of 2026 Drilling

Additional Rare Earth Mineralisation Confirmed

Magnetite Mines Limited (ASX, MGT) has announced further encouraging assay results from its Ironback Hill Project in South Australia, confirming additional near-surface, clay-hosted rare earth element (REE) mineralisation. The new data comes from re-assaying archived drill samples originally collected during iron ore drilling in 2011–2012, revealing significant intervals of Total Rare Earth Oxides (TREO) and critical magnet rare earths such as Neodymium Oxide (Nd₂O₃).

Significant Intercepts Highlight Potential

Among the standout results are an 8-metre intercept grading 1,238ppm TREO with 260ppm Nd₂O₃ from 28 to 36 metres depth, embedded within a broader 24-metre zone averaging 1,048ppm TREO. Another notable intercept includes 2 metres at 1,088ppm TREO from 20 to 22 metres. These grades extend and enhance previously reported mineralised zones, suggesting a thicker and more continuous REE horizon than initially understood.

Strategic Drilling Program Planned for Early 2026

To better delineate the spatial extent and geological controls of this mineralisation, Magnetite Mines plans a focused, low-impact air-core drilling program in the first quarter of 2026. The program aims to drill approximately 1,000 to 2,000 metres targeting oxidised, near-surface clay horizons along key creek systems. This approach is designed to be cost-effective and environmentally sensitive, leveraging 4WD-mounted rigs to rapidly collect samples for further metallurgical and mineralogical testwork.

Expansion of Exploration Tenure

Complementing the drilling plans, the company has submitted a new exploration license application to cover the south-eastern extension of the local creek drainage system, which is interpreted to be prospective for similar clay-hosted REE mineralisation. This application has passed initial validity assessments and is expected to be granted in early 2026, providing Magnetite Mines with expanded ground for systematic exploration along priority corridors.

Capital-Light and Disciplined Exploration Strategy

Managing Director Tim Dobson emphasised the company’s disciplined approach, highlighting the advantage of exploring critical minerals in low-density pastoral land close to existing infrastructure. This proximity supports efficient follow-up activities and aligns with the company’s broader strategy to increase shareholder value through selective, capital-light exploration. While Ironback Hill’s REE potential is promising, Dobson reaffirmed that Razorback remains the company’s core development focus.

Next Steps and Market Context

Following the upcoming drilling campaign, assay results will be integrated into the geological model to refine target definitions and guide subsequent exploration phases. Early-stage metallurgical testwork is ongoing but remains limited, with recoveries and economic feasibility yet to be determined. The shallow, clay-hosted nature of the mineralisation, coupled with the strategic importance of rare earths like neodymium for modern technologies, positions Ironback Hill as a potentially valuable asset in a market increasingly focused on critical minerals supply chains.