ABx Group has discovered new high-extraction ionic rare earth zones at its Deep Leads project in Tasmania, accelerating the path to production within months of approval. This breakthrough enhances the project's commercial viability with rare earths critical for green technologies.
- Discovery of new ionic rare earth areas with high extraction rates
- Deep Leads project development stage now underway aiming for rapid production
- Project enriched in high-value rare earths dysprosium and terbium
- JORC-compliant resource of 89 million tonnes with exceptional heavy rare earth content
- Strategic partnerships progressing for rare earth processing and offtake
Discovery Boosts Project Potential
ABx Group Limited (ASX:ABX) has announced a significant milestone at its Deep Leads rare earth project in northern Tasmania, revealing new zones of ionic adsorption clay rare earths with notably high extraction rates. These ionic rare earths are prized for their low-cost extraction process, which sharply improves the economics of the project. The discovery was confirmed through rigorous leach testing conducted both in-house and by the Australian Nuclear Technology and Science Organisation (ANSTO), with extraction rates exceeding 80% in some samples.
This breakthrough means the Deep Leads project can now move swiftly into its development phase, targeting production commencement within months of receiving project approval, a timeline that is unusually rapid for rare earth projects.
Strategic Location and Resource Quality
Situated just 40 kilometres west of Launceston, the Deep Leads project benefits from existing infrastructure including granted mining leases, nearby rail access, and low-cost hydropower. ABx’s deposits stand out for their enrichment in the most valuable rare earth elements, particularly dysprosium (Dy) and terbium (Tb), which are critical for permanent magnets used in electric vehicles, wind turbines, and defence technologies.
The company reports a JORC-compliant mineral resource of 89 million tonnes across its Deep Leads, Rubble Mound, and Wind Break deposits, with a heavy rare earth content (Dy+Tb) of 36 parts per million, representing 4.3% of total rare earth oxides; among the highest globally for clay-hosted deposits.
Market Context and Commercial Strategy
Rare earth prices have strengthened recently, with the basket price of ABx’s mixed rare earth carbonate (MREC) product rising 34% over the past three months. The premium value is underpinned by the high Dy and Tb content, whose prices in Europe notably exceed those in Shanghai by more than fourfold. ABx aims to become Australia’s first producer of ionic rare earths, supplying premium MREC to separation plants.
To this end, ABx has formalised a Memorandum of Understanding with Ucore Rare Metals Inc., a North American rare earth processing developer, and is actively engaging other potential offtake partners. The company is advancing engineering studies informed by the new leach test results to optimise production plans.
Technical Advances and Next Steps
ABx’s in-house leach testing capability, developed since 2023, has been instrumental in identifying the expanded extent of ionic clay rare earths, including three new high-extraction samples located over two kilometres from previously known zones. This suggests the potential for even larger or higher-grade discoveries within the project area.
Looking ahead, ABx will continue systematic leach testing to refine resource definitions and expects to commence commercial production of MREC as soon as possible. The company’s approach leverages a simple, benign three-step leaching process, well established in Asia but novel in Australia, positioning ABx as a pioneer in this space.
Environmental and Operational Considerations
Operating within pine plantations on freehold land, ABx emphasises sustainable practices and aims to leave the environment in better condition post-mining. The project benefits from granted mining leases and is supported by ongoing approvals for related bauxite projects, underscoring ABx’s diversified materials strategy for a cleaner future.
Bottom Line?
With ionic rare earth discoveries accelerating development, ABx is poised to reshape Australia’s rare earth supply landscape, next steps will reveal if rapid production can meet soaring global demand.
Questions in the middle?
- How quickly can ABx secure final approvals to begin production at Deep Leads?
- What are the capital requirements and funding plans to scale up the project?
- Which additional offtake partners might ABx secure beyond Ucore Rare Metals?