RareX strengthens niobium foothold with key acquisition and project milestones

RareX (ASX: REE) has positioned itself perfectly to take advantage of the current niobium boom with an enticing addition to its portfolio and a project upgrade during the June 2024 quarter.

The company made the strategic acquisition of the district-scale Khaleesi niobium project in the East Yilgarn region of Western Australia, one of the hottest exploration regions in Australia, during the reporting period.

The company’s interpretation of extensive, detailed historical geophysical data from Khaleesi has already highlighted several priority target areas, including multiple gravity anomalies.

Cummins Range progress

Meanwhile, the company’s Cummins Range rare earths and phosphate project in WA’s Kimberley Region is also providing RareX with some potential niobium exposure.

“It’s been a tremendously exciting quarter for RareX, with the company making significant progress towards the completion of permitting at our Cummins Range rare earths and phosphate project and acquiring a highly prospective new niobium exploration asset,” chief executive officer James Durrant said.

“At Cummins Range, we have now completed all baseline environmental surveys required for project permitting, with the results confirming all environmental aspects can be successfully managed via standard operational plans.”

“In addition, our previously announced business development program – aimed at identifying complementary carbonatite-focused exploration projects to our asset portfolio – has borne fruit, with the acquisition of the district-scale Khaleesi Niobium project.”

Capital raising

RareX also completed a successful $1.5 million self-brokered share placement during the quarter, which will provide funding to progress exploration and development at Khaleesi and Cummins Range.

At Khaleesi, which brings a strong historical drilling background with highlighted elevated niobium and rare earth assays across an extensive system, RareX is compiling data from over 65,000m of historical gold-focused air core drilling on the tenement package.

Most of these drilled metres were only assayed for gold-related elements.

The company has located and acquired approximately 10,000m of the drill chips and pulps from the project area, which are being assessed and sent for re-assay for target elements.

The remaining drill chips and pulps have been located, and acquisition is underway.

The drill database, geological, and geochemical data will be added to the geophysical surveys and a geological model formed to prioritise exploration areas.

DFS work

RareX believes the wealth of environmental information collected and reported upon at Cummins Range is sufficient to develop a project description that can be used to formally engage the regulators before submitting either a referral under the environmental protection act or progressing directly to permitting upon completion of a definitive feasibility study (DFS).

The project’s pre-feasibility study has progressed to the requisite level, with offtake being the final catalyst to close this level of study.

RareX says early definition of offtake is important for specialty products and it is progressing with product generation to support future engagement with downstream refiners of rare earths and phosphates.

The company anticipates that once approval engagement has formally been initiated with the regulators, permitting may be completed within 12 months.