Name of the Project
Makuutu rare earths project.

Location
Uganda, 120 km east of Kampala.

Project Owner/s
Ugandan company Rwenzori Rare Metals (RRM), which owns 100% of the Makuutu rare earths project. Ionic Rare Earths (IonicRE) is a 51% owner of RRM and progressing to 60% with the completion of the definitive feasibility study (DFS). IonicRE also maintains a first right over the remaining 40% of the project.

Project Description
The Stage 1 DFS proposes an openpit mining operation at an annualised mining rate of five-million tonnes a year of mineralisation from the project for total rare-earth oxide equivalent production of 40 090 t.

The maiden ore reserve for Stage 1over retention licence 1693 is 172.9-million tonnes grading 848 parts per million (ppm) total rare-earth oxide for 146 654 t of contained total rare-earth oxide.

Stage 1 envisages production of 1 300 t/y of rare earths in the first ten years, averaging 1 156 t/y over the estimated 35-year mine life.

Stage 1 development at Makuutu is expected to be supported with further growth, to be derived from other tenements at the project, which will progress to a mining licence application, with further exploration over the next decade.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $406-million and internal rate of return of 32.7%, with a payback of about three years.

Capital Expenditure
The project has an initial capital expenditure $120.8-million.

Planned Start/End Date
Not stated.

Latest Developments
IonicRE’s shareholding in the Makuutu rare earths project has increased to 60%, following the completion of the Stage 1 definitive DFS and approval from the Ugandan Ministry of Energy and Mineral Development to progress the construction of a demonstration plant.

IonicRE continues to engage with stakeholders in the Ugandan government on the status of the mining licence application.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
IonicRE, tel +61 3 9776 3434 or email admin@ionicre.com.