Australian Rare Earths’ (AR3) Koppamurra Project has progressed in its goal to become a globally significant critical rare earths project, as its ionic clay deposits reach a 104 per cent increase in the Mineral Resource Estimate (MRE).
AR3’s Koppamurra Project in South Australia and Victoria is 100 per cent owned by the company and has completed two significant drilling programs since October 2021, establishing the potential for the Koppamurra deposit as a shallow, low cost, long-life resource.
AR3 shared the outstanding result which was an increase from 45Mt at 835ppm total rare earth oxide (TREO) to 81.4Mt at 785ppm TREO.
The new MRE will allow the company to commence strategic discussions with end users and government representatives related to potential development, downstream processing, funding, and off-take arrangements.
The consistent nature of the deposit enables expedient drilling and rapid resource growth as well as the ability to undertake progressive rehabilitation, all of which continues to distinguish Koppamurra as a unique rare earth business opportunity.
AR3 Managing Director, Don Hyma, said the MRE was an outstanding result and a game changer for Koppamurra.
“Its future as a significant project is now clear,” Mr Hyma said.
“Koppamurra is one of only three advanced ionic clay-hosted rare earth deposits outside China and Myanmar, and it is now emerging as a project of both scale and quality.
“Its key attributes include its Tier 1 jurisdiction location, a rare earth element suite that offers the potential to supply both the light and heavy rare earths required for high-strength permanent magnets, the shallow, free-digging nature of the mineralisation and a low-CAPEX development pathway that offers the potential for a modular, staged approach.”
Mr Hyma said the updated MRE and adjoining Exploration Targets are based on just five per cent of the AR3 exploration tenure, highlighting the potential for what could become a generational-sized deposit.
“We will now continue drilling to grow the resource in parallel with ongoing technical and metallurgical studies with the aim of advancing Koppamurra towards development as a new critical minerals project in south-eastern Australia,” Mr Hyma said.
“Our vision is to progress down a pathway that will see Koppamurra in production by 2025/26, perfectly timed to take advantage of surging demand for rare earths.
“Demand for Neodymium Iron Boron (NdFeB) high-strength permanent magnets in electric vehicles (EV) and wind turbine generators is the key demand driver for the four key rare earth elements contained in the Koppamurra Resource – Neodymium, Praseodymium, Dysprosium and Terbium.
“Shortages of NdFeB are forecast as early as 2023, with the global market almost totally reliant on supply from China. Koppamurra is ideally placed to capitalise on the strong forecast growth in demand by building a new source of critical rare earths for the burgeoning global EV and wind turbine industries.”
Mr Hyma said the landmark resource update and the ongoing work the company is undertaking to confirm the viability of the Koppamurra Project gives added confidence in the company’s discussions with potential strategic downstream partners.
“This exceptional result is a credit to our team for the outstanding work they have done to advance Koppamurra so rapidly to this point. The inclusive and proactive approach we have adopted to engagement with our key stakeholders is fundamental to the way we work, and in particular I would like to acknowledge the support of the local communities and landowners during the recent drilling programs.”
Highlights of the Koppamurra Resource update:
- JORC MR for the Koppamurra clay-hosted rare earths project, located on the South Australian-Victorian border, increases by 104 per cent to 81.4Mt at 785ppm TREO
- This includes an initial Indicated Resource of 45Mt at 835ppm TREO
- The updated MRE which is more than double the initial Mineral Resource posted in April 2021, is considered a key milestone because it demonstrates that AR3 is well on the path to establishing a world-scale inventory at Koppamurra
- TREO Grade of the Indicated Resource is 15 per cent higher than the initial Inferred Resource published in April 2021 of 725ppm
- Adjoining Exploration Targets highlight scope for further substantial resource growth
- Koppamurra is well placed to capitalise on the sizeable forecast growth in demand for sources of rare earths
- Koppamurra has all four of the key rare earth elements required to make high-strength permanent magnets needed for EV motors and wind turbines
- As an ionic clay deposit, Koppamurra stands to be very cost-competitive
Next key steps include:
- A drilling program of 10-20,000m scheduled to commence in Q3 2022, aimed at further growing the resource footprint and converting existing resources to Measured Resources
- Economic studies and evaluation of downstream processing opportunities
- Environmental studies focusing on groundwater and flora-fauna
- Completion of laboratory scale metallurgical testwork in preparation for pilot plant tests
- Achieving first production in 2025-26 to capitalise on strong forecast growth in demand for new, non-Chinese sources of vital rare earths from the global EV and wind turbine industries
