RareX commits to advancing the largest undeveloped rare earths project in Australia

RareX (ASX: REE) has committed to advancing its flagship Cummins Range project in Western Australia amid weak market conditions for rare earth stocks while launching a counter-cyclical business development plan aimed at putting it in the best possible position when the market turns.

In February, the company released an infill-based updated mineral resource estimate for Cummins Range of 524 million tonnes at 0.31% total rare earth oxides (TREO) and 4.6% phosphorus pentoxide for 1.6 million tonnes of contained TREO and 24 million tonnes of contained phosphorus pentoxide.

The upgrade was underpinned by the results of a 2023 drilling program focused on gaining further understanding of the metallurgical domains and continuity of high-grade phosphate in the regolith.

It included a high-grade resource of 44Mt at 1% TREO.

RareX said there was a possibility for further resource growth following the discovery of a potential carbonatite swarm located close to the main deposit.

Cummins Range remains the largest undeveloped rare earth deposit in Australia.

It is considered to be a significant potential source of neodymium-praseodymium magnets and battery-quality lithium iron phosphate in WA.

New business plan

Also in February, RareX announced a new business plan based on taking advantage of the present downturn in the global rare earth sector by allocating development capacity to opportunities in WA, Canada and Saudi Arabia.

A large magnetic anomaly at the Red Dragon tenement in WA is believed to have potential to be a large iron-oxide-copper-gold deposit, while exploration is underway at the Goldray project pegged in a known niobium district in Ontario.

Proposals are being prepared for submission to acquire projects in the Arabian Shield area of Saudi Arabia.

Exploration targets are also being planned for near-mine anomalies identified at Cummins Range, which have the potential to add material value to the project.

Long-term opportunities

RareX Chief Executive Officer James Durrant said the company was always looking at new high-potential projects that would position it for long-term growth.

“During the quarter, we initiated a review of potential opportunities, with a specific focus on eastern Canada and Saudi Arabia, which offer compelling potential for the discovery of new rare earth and niobium deposits,” he said.

“We remain bullish about the long-term outlook for rare earths, supported by strong underlying demand from military applications, consumer electronics and the continued growth of electric vehicles and wind turbines.”

In light of poor market conditions, RareX has also implemented cost-control initiatives, including a reduction in service providers and retainer rates and the contracting of select internal technical capabilities.