Magnetite Mines has secured all necessary permits to commence drilling at its Ironback Hill Rare Earth Element Project, aiming to expand on promising mineralisation discovered last year.
- Permitting and heritage approvals secured for Ironback Hill drilling
- Up to 2,000 metres of aircore drilling planned to test rare earth mineralisation
- Drilling scheduled to start imminently with results expected in 6-8 weeks
- Project located near flagship Razorback Iron Ore Project in South Australia
- Supports company’s multi-commodity exploration strategy
Approvals Unlock Next Phase of Rare Earth Exploration
Magnetite Mines Limited (ASX, MGT) has reached a significant milestone with the securing of all necessary permits, approvals, and heritage clearances to initiate an initial drilling campaign at its Ironback Hill Rare Earth Element (REE) Project in South Australia. This development sets the stage for a focused exploration effort to better understand and potentially expand the rare earth mineralisation first identified in historic iron ore drill samples.
The Ironback Hill project, situated approximately 250 kilometres northeast of Adelaide and close to the company’s flagship Razorback Iron Ore Project, has emerged as a promising new frontier for Magnetite Mines. The discovery of clay-hosted REE mineralisation last year, through the re-assay of archived drill samples, has prompted this targeted drilling program designed to test the extent and geological controls of the mineralisation.
Drilling Program Details and Strategic Context
Magnetite Mines plans to undertake up to 2,000 metres of aircore drilling over roughly ten days, with drilling contractors already engaged and operations set to commence imminently. The program aims to delineate the lateral and downstream extent of the rare earth mineralisation, which appears to be associated with shallow oxidised clay and silt horizons above weathered basement rock. This mineralisation aligns with local creek and drainage systems, suggesting a geological model where rare earth elements concentrate in zones of enhanced weathering and fluvial reworking.
Managing Director Tim Dobson emphasised that this exploration aligns with the company’s broader strategy of disciplined, multi-commodity exploration across its extensive South Australian tenements. While Razorback remains the company’s flagship iron ore project, the Ironback Hill REE initiative represents an exciting diversification into rare earth elements, which are critical to emerging technologies and clean energy applications.
Community Engagement and Next Steps
The company acknowledged the support of the Ngadjuri Nation Aboriginal Corporation for facilitating the cultural heritage survey and the landowner for enabling access and logistical support. Following the drilling campaign, assay results are anticipated within six to eight weeks, subject to laboratory processing times. These results will be closely watched by investors and analysts eager to assess the potential scale and economic viability of the rare earth mineralisation.
Magnetite Mines’ approach of leveraging low-cost re-assaying of historic drill samples to identify new opportunities exemplifies a resourceful exploration strategy. Should the drilling confirm significant extensions of the REE mineralisation, it could add a valuable dimension to the company’s portfolio and enhance its position in the critical minerals sector.
Bottom Line?
As drilling kicks off, all eyes will be on assay results that could redefine Magnetite Mines’ rare earth prospects.
Questions in the middle?
- Will the drilling confirm economically viable extensions of rare earth mineralisation?
- How might successful REE exploration impact Magnetite Mines’ strategic focus and capital allocation?
- What are the potential timelines and pathways for developing a rare earth resource alongside Razorback?