RareX advances Cummins Range project, explores new global rare earths opportunities
In its latest business development update, RareX (ASX: REE) has set out its two key pillars for growth: focusing on the last stages of development at its flagship Cummins Range project and securing new complementary rare earths (REE) projects in stable jurisdictions.
This comes against a background of REE prices that have been weak but which have, according to analyst reports, potentially bottomed.
“Demand remains very strong for strategic energy and electronic applications and prices are forecast to recover well,” the company stated.
“RareX is leveraged to a rebound in rare earths prices and supply chain de-risking.”
The company is now looking at new projects that will allow it greater exposure to the top three REE markets — Asia, Europe and the US.
Engineering at Cummins Range near completion
The development phase at Cummins Range, located in the Kimberley region of Western Australia, is now mainly focused on off-take, permitting and approvals.
This has freed up RareX to pursue growth opportunities while REE basket prices are at their present low.
The project’s current resource estimate stands at 44 million tonnes at 1% total rare earth oxides (TREO) with a global resource of 5,600Mt at 0.3% TREO.
The associated apatite phosphate mineralisation at Cummins Range has the potential to supply the lithium ferro-phosphate acid pre-cursor for downstream supply chains.
‘Simplest’ REE project in Australia
The company belives that the presence of apatite, along with the monazite, means Cummins Range has the potential to be Australia’s simplest and most capital-efficient REE project.
The off-take process for Cummins Range is well underway in the Asia Pacific and the company has singled out Australia and India as being part of that effort.
Beyond Cummins Range, RareX is applying for Exploration Incentive Scheme funding to support drilling of the large magnetic anomaly at Red Dragon.
RareX will investigate Red Dragon’s potential to be a large iron oxide copper gold deposit.
In addition, RareX has exposure to prospective heavy rare earths (HREE) mineralisation through its Mount Mansfield tenement portfolio.
Mount Mansfield is located 60km from the advanced Browns Range REE project where Northern Minerals (ASX: NTU) is aiming to become a key supplier of HREE battery metals dysprosium and terbium.
RareX says it has access to new ground that is believed to have potential for “significant” HREE opportunities.
Capacity for expansion
The freeing up of in-house engineering and geology teams from work at Cummins Range means the company has reserve staff capacity for expansion.
However, chief executive officer James Durrant also emphasised this is not in any way a distraction from Cummins Range.
“It is a way to maximise our position in this difficult market so that we may come out of it thriving, rather than having simply survived,” he added.
RareX retains a firm belief in rare earths fundamentals and is confident the current market presents an “opportunity not to be missed”.
Opportunities in Canada and Saudi Arabia
RareX’s new business development plan update is based upon taking advantage of the present downturn in the global rare earths sector and now intends to allocate development capacity to Canada and Saudi Arabia.
The company sees several significant advanced Canadian REE deposits offering attractive complementary acquisitions.
RareX has been working with Canadian geological consultants and views the country as an attractive place to acquire an advanced stage exploration project.
In the case of Saudi Arabia, RareX sees geological potential for carbonatite-hosted rare earths deposits and the opportunity to be close to the key European markets.
Following on from the Saudi Government inviting RareX to the recent Future Minerals Forum in Riyadh, the company is now working with an experienced Saudi mining firm.
The Saudi government is seeking to build its rare earths presence as part of its efforts to develop an industrial sector.