Basin Energy’s Newmans discovery grows as rare earth model holds together

Newmans footprint expands to 6.7 kilometres

Basin Energy Limited (ASX:BSN) has more than doubled the mineralised footprint of its Newmans rare earth discovery in northwest Queensland, extending it from 3.3 km to 6.7 km after an 18-hole follow-up RC program. Thirteen holes intersected shallow mineralisation above 1,000 ppm TREO, taking the total to 17 of 26 holes drilled at Newmans that have returned significant intercepts. The result builds on the 6.7 km Newmans expansion reported in late September, when the company also outlined the strongest magnet rare earth interval then recorded.

The standout hole, SBRC26014, returned 25 metres at 458 ppm MREO within 2,164 ppm TREO from four metres, including a three-metre interval at 1,147 ppm MREO within 5,253 ppm TREO. SBRC26016 delivered the thickest intercept so far, with 27 metres at 364 ppm MREO within 1,698 ppm TREO from six metres. These are downhole lengths, however, and true widths are not yet known.

Heavy rare earths add a second layer to the discovery

The expanded drilling also identified recurring heavy rare earth mineralisation, including dysprosium, terbium and yttrium, across roughly 4.5 km of the trend. Seven holes returned three-metre composite intervals above 500 ppm HREO, with SBRC26024 producing four metres at 940 ppm HREO from 12 metres, including a two-metre interval at 1,208 ppm HREO.

Basin said the magnet basket has remained near 21% of TREO as grades increased, while the drilling continues to show a repeatable vertical pattern through the weathered granite. That geological consistency may help guide future targeting, but it is still an exploration interpretation rather than a resource estimate or economic assessment.

Metallurgy moves from headline grades to recoverability

The next technical test is whether the rare earths can be recovered effectively. Basin has engaged ANSTO and Brisbane Metallurgical Laboratories for preliminary leachability and XRD work across different weathering domains, with results expected in the fourth quarter. The program follows the initial Newmans metallurgy program, which began with the same recoverability question but did not yet establish processing outcomes.

A separate research collaboration with James Cook University runs to June 2029 and carries no cash payment by Basin. JCU will own project intellectual property and data generated through the research, while Basin receives a royalty-free, non-exclusive worldwide licence to advance projects in which it has an interest. The company has also started maiden drilling at Rochedale, 15 km southwest of Newmans, with up to seven holes testing a separate phosphorite-hosted heavy and magnet rare earth model; assays are expected in December.

Marshall sale reduces obligations but funding remains live

Basin completed the sale of its Marshall Uranium Project in Canada to Green Canada Corp. on 1 September, receiving an initial 11.54% stake in Green Canada, C$150,000 in cash and the prospect of up to a further C$650,000 in staged payments. It retains a 25% project-level buyback right and a three-year right of first refusal. The divestment removes Basin’s funding obligations at Marshall, but the additional consideration remains subject to the transaction terms and future conditions.

Cash at 30 September was A$776,000, after quarterly operating outflows of A$315,000 and capitalised exploration expenditure of A$193,000. On the Appendix 5B calculation, that equates to 1.53 quarters of funding at the quarter’s relevant outgoings. Basin said it expects outflows to fall, partly because the Rochedale program is supported by up to $76,413 in Queensland Government co-funding, but it is considering further funding options and retains the ability to adjust exploration spending.