Australian Rare Earths Advances High-Purity Rare Earths and Uranium Targets with $6M Funding Boost

Breakthrough in Rare Earth Processing at Koppamurra

Australian Rare Earths Limited (ASX:AR3) has unveiled a significant metallurgical milestone at its Koppamurra Rare Earths Project, achieving a 99.9% recovery of rare earth elements (REE) from solution through a newly established oxalate precipitation process. This pathway produces a high-purity Mixed Rare Earth Oxide (MREO) product projected to contain approximately 98.6% REO plus Yttrium Oxide by weight, a notable simplification compared to the more complex Mixed Rare Earth Carbonate (MREC) flowsheets commonly pursued by western ionic clay projects.

The oxalate route not only promises higher product quality but also offers lower transport costs and simpler downstream purification, positioning AR3 favorably in the rare earths market. The MREO product notably includes about 49% magnet rare earth elements alongside yttrium, gadolinium, samarium, and lutetium; elements increasingly critical due to China's expanded export controls since April 2025.

Heap Leach Optimisation Doubles Irrigation Rates and Boosts Recoveries

Further metallurgical optimisation has yielded a step-change in heap leach performance, with AR3 doubling irrigation rates from 5 to 10 litres per square metre per hour. This adjustment halved the leaching time while maintaining magnet rare earth recoveries around 70%, including key elements such as neodymium, praseodymium, dysprosium, and terbium. Remarkably, halving the Magnesium Sulphate reagent concentration showed no adverse impact on extraction, supporting a pathway to reduced operating costs and a smaller heap leach footprint.

These advances materially enhance the project's economics and scalability, offering faster throughput and earlier production potential. The findings build on previous breakthroughs reported by AR3, including the doubling of leach rates and sustained rare earth recoveries, which underpin preparations for pilot plant operations with ANSTO and the forthcoming Pre-Feasibility Study (PFS) slated for late Q2 2026.

Pilot Plant and Pre-Feasibility Study Progress

AR3 is poised to commence pilot plant operations at the Australian Nuclear Science and Technology Organisation's (ANSTO) new continuous pilot-scale rare earth processing facility in Sydney by the end of Q2 2026. Approximately 30 tonnes of Koppamurra ore have been prepared for shipment to ANSTO, marking a critical transition from laboratory testwork to pilot-scale execution. This pilot program aims to validate the process flowsheet at scale, generate essential engineering data, and produce a high-quality MREO product to support offtake discussions and customer qualification.

The PFS is advancing steadily with flowsheet design finalised and metallurgical optimisation nearing completion, representing significant de-risking milestones. AR3 benefits from being the first industry partner to access ANSTO's facility, sidestepping the need for costly pilot plant construction and accelerating the project timeline.

New Uranium Targets and Drilling Recommencement at Overland

Beyond rare earths, AR3 has defined two large-scale sedimentary-hosted uranium target zones within its recently granted EL7079 tenure at the Overland Uranium Project in South Australia. These targets; the Western Flank Zone within the Ettrick Formation and the Basal Sandy Unit; were delineated through a comprehensive review of historic drilling data and confirmed uranium assays from resampled core hole C051, which returned significant uranium mineralisation including intervals up to 0.90 metres at 201 ppm U₃O₈.

Regulatory approval for a drilling program has been secured, with rig mobilisation scheduled for late April 2026. Anomalous gamma logging across multiple legacy drillholes further underscores the widespread uranium potential across the newly granted tenements. This drilling recommencement aligns with a robust uranium market backdrop driven by expanding nuclear power programs and energy security imperatives.

Financial Position Strengthened by Placement and Government Grants

AR3 closed the quarter with A$6.66 million in cash, bolstered by a $6 million share placement completed during the period and a $960,000 progress instalment from the Australian Government’s International Partnerships in Critical Minerals (IPCM) grant program. Total IPCM funding received now stands at $2.75 million of a $5 million award, with $2.25 million remaining contingent on milestone delivery in 2026.

The company invested approximately $1.64 million in exploration activities during the quarter, primarily supporting Koppamurra’s development and Overland’s uranium drilling preparations. Shareholders ratified the placement shares and approved associated options at a General Meeting held on 21 April 2026, clearing the way for continued capital-efficient advancement of both projects.

These developments follow the group's recent doubling of leach rates and the securing of pilot-scale processing at ANSTO alongside a $6 million raise earlier in the year, reinforcing AR3’s momentum in the critical minerals space.