RareX Delivers Resource Upgrade for Cummins Rare Earths Project

RareX Delivers Resource Upgrade for Cummins Rare Earths Project

RareX Limited announced that the company's major upgrade of the resources of the Cummins Range Rare Earths Project in its 100% owned equity in the Kimberley region of Western Australia (WA). This move is a significant step towards the development of the long-lived rare earths business.

As a result of the completion of the drilling plan last year, the scale and quality of Cummins Mountain's mineral resources have increased significantly, firmly establishing the deposit as a high-quality development opportunity in a Tier-1mining jurisdiction. The high-quality work of the company's technical team resulted in a major increase in resources due to the drilling results of last year and the correct weight measurement in the current expansion drilling plan.

The above projects are in different stages of development, some of which are more advanced than the company's inferred and indicated resource estimates. Among them, the Lynas Rare Earths project is currently in production, and the remaining projects are in trial production. Investors should be aware that as projects advance towards production, the application of correction factors may result in a change in the cut-off level, which may affect the previous comparison.

The 46% increase in the overall deposit is accompanied by the announcement of significant high-grade components and the first indicated resource of 11.1 million tons, 1.34% TREO + 0.17% Nb2O5 (0.5% TREO cut-off) and 4.9 million tons at 2.11% + 0.23% Nb2O5 (1.0% TREO threshold) also marks a significant improvement in the quality of resources.

Cummins Range is located in WA, and it is now possible to support an independent rare earth oxide production program and become a third-party concentrate supplier in Australia and overseas.

The main value drivers of these projects are neodymium (Nd), praseodymium (Pr), terbium (Tb), dysprosium (Dy) and scandium (Sc). RareX believes that the prospects for these metals in the next few decades are very optimistic. The company also reported for the first time the grade of accompanying niobium resources identified in the drilling program last year.

The global niobium market is currently approximately 125 kilotons per year, valued at approximately US$5 billion, and is expected to grow at a compound annual growth rate of 6% between 2020 and 2051. Market growth is expected to be supported by the increasing use of lightweight high-strength alloy steels in construction, continued use of aircraft engines, and additional long-term growth through light weighting in transportation, defense, space applications, and battery technology.

The current price of niobium is US$92.65/kg, which is approximately three times the price of the Cummins-range basket. This is an attractive opportunity to obtain more value from the range resources. The company has resumed exploration in the Cummins Mountains, with the goal of high-grade mineralization along strike and depth.

Recently, RareX completed a reverse circulation drilling program of the rare earths project, with preliminary assessments supporting the revised geological model. Several drill holes have been drilled in the northeast direction, and there are significant intersecting structures of quartz veins and silica-carbonate alterations. These structures are known to be the host of high-grade mineralization in the main fault.

The samples from this initial stage have now been shipped to Perth for testing, and the results are expected to be available in 1 to 2 months. The diamond rig is scheduled to arrive next week and will test the explained high-grade structure in the depths. Main fault was not tested below 100 meters vertical, and the two deepest holes CRX0054 and CRX0025 recorded significant mineralization. The drilling will be carried out in the next two months and the results will be reported when the test results are received.

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