Makuutu, Uganda
(60% IONICRE)
Advanced stage, low capital, long-life, ionic adsorption clay project
The Makuutu Rare Earths Project is one of very few proven Ionic Adsorption Clay (IAC) deposits globally, with scale to move the needle on heavy Rare Earth Oxide (REO) supply for the new economy – for 50 years and beyond!
Set to become Uganda’s flagship mine, the Makuutu Project will be an environmentally and socially sustainable, low-cost development.
The magnet and heavy REOs found in the Makuutu basket are unique: they include Neodymium (Nd), Dysprosium (Dy), Praseodymium (Pr) and Terbium (Tb). Additionally, Makuutu is one of the largest Scandium resources in the world.
Without these critical rare earth elements, the world will not be able to achieve net-zero carbon ambitions.
These magnet and heavy REOs are required for:
- Use in high end applications – Electric Vehicles (EVs), offshore wind turbines and defence programs
- Scandium will unlock new industries and blue-sky opportunities in the lightweighting transportation solutions across automotive, aerospace, space, marine and rail
- Geo-political security requires countries to secure sustainable supplies for industrial development of new technologies (specifically manufacturing and defence).
The project is well-supported by existing tier-one infrastructure and is on track to become a long-life, low Capex, scalable and sustainable supplier of high-value magnet and heavy REO. The Project is now producing mixed rare earth carbonate (MREC) from a Demonstration Plant on site to advance offtake negotiations.
Makuutu currently ranks amongst the world’s largest and most advanced ionic adsorption clay (IAC) deposits, and as such, is a globally strategic resource for near term, low capital development, facilitating long-term security of magnet and heavy REO supply.
Makuutu is being developed by Rwenzori Rare Metals Limited (“RRM”), a Ugandan private company which owns 100% of the Makuutu Project. IonicRE is a 60% owner of RRM and had signed a conditional share purchase agreement to acquire an additional 34% interest in the strategic Makuutu Rare Earths Project, taking its ownership to 94% on completion.
IonicRE has undertaken various discussions with partners of the Mineral Security Partnership (MSP), of which Makuutu has been added given its strategic heavy REO potential.
Recent Activity:
- In March 2023, IonicRE announced a positive stage 1 Definitive Feasibility Study (DFS) for the first of six tenements to progress to a mining licence, which was awarded in January 2024.
- Makuutu has previously produced mixed rare earth carbonate (MREC) from a Demonstration Plant on site to advance offtake negotiations.
Work has continued on processing ionic adsorption clay (IAC) mineralisation at the Company’s demonstration plant in Uganda, with mixed rare earth carbonate (MREC) production being sent to Australia for analysis and onwards to potential offtake partners to support commercial discussions.
The Makuutu deposit is comprised of six licenses covering approximately 300 km2 located 120 km east of Kampala in Uganda. The defined mineralisation stretches 37km long and is situated near high quality tier one infrastructure. Simple mining and low CAPEX processing will produce Mixed Rare Earth Carbonate (MREC) with no radionuclides (Uranium and Thorium).
The Makuutu basket contains a high proportion of magnet and heavy rare earths; including a near-perfect split of magnet rare earths Nd, Pr, Dy and Tb, required for developing the high intensity permanent magnets required for EVs and offshore wind turbines. This basket provides Ionic Rare Earths with a significant opportunity to realise downstream value addition.
The Mining License Application is finalised and pending award. Additionally, Makuutu is a scalable asset offering huge value through exploration upside along the 37km mineralisation trend. Currently, greater than 95% of the world supply of heavy REOs is from declining reserves of IACs in southern China and Myanmar, where sustainability standards are below requirements for western supply chains.
A key characteristic of Makuutu is the geology. The clays of Makuutu, which is similar to the ionic clay-type deposits of southern China and Myanmar, present a low-cost mining, extraction and processing opportunity, and are the most readily accessible global source of heavy REOs. The Makuutu Project will use simple open pit mining and heap desorption processing methods.
The Makuutu IAC deposit has a mineral resource estimate of 617 million tonnes, with enormous upside potential through further exploration. The benefit of IACs is that the deposit is at surface allowing for the development of a low capital, modular project – starting with 5 million tonnes per annum and ability to scale up in time to meet increasing demand and aligned with downstream processing capacity.
With growing demand for magnet and heavy REOs, and customers increasingly looking for sustainable supplies – the Makuutu deposit along with Ionic Rare Earths refining, and recycling division, will add value to the environment through the circularity of supply chains.
Makuutu Mineral Resource Estimate above 200ppm TREO cut-off (ASX: 15 May 2024)
| Resource Classification | Tonnes (millions) |
TREO (ppm) |
TREO-CeO2 (ppm) |
LREO (ppm) |
HREO (ppm) |
CREO (ppm) |
Sc2O3 (ppm) |
|---|---|---|---|---|---|---|---|
| Indicated Resource | 517 | 650 | 440 | 470 | 170 | 220 | 30 |
| Inferred Resource | 99 | 560 | 380 | 420 | 140 | 190 | 30 |
| Total Resource | 617 | 630 | 430 | 460 | 160 | 210 | 30 |
The revised Exploration Target, updated on 15 May 2024 MRE, indicated a range for additional potential mineralisation at Makuutu had been estimated at;
277 – 750 million tonnes grading 400 – 700 ppm TREO*
*This Exploration Target is conceptual in nature but is based on reasonable grounds and assumptions. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Makuutu Rare Earths Project Tenement Details
| Licence ID | Licence Type | Application Date | Granted Date | Expiry / Renewal Date | Area (km2) |
|---|---|---|---|---|---|
| RL00007 | Retention | 12/12/2022 | 20/12/2022 | 25/11/2024 | 43.39 |
| LML00334 | Mining | 01/09/2022 | 28/12/2023 | 27/12/2044 | 43.78 |
| RL00234 | Retention | 26/06/2021 | 06/07/2021 | 05/07/2024- Renewal Pending | 47.03 |
| EL00257 | Exploration | 15/07/2021 | 21/10/2021 | 20/10/2024- Renewal Pending | 55.51 |
| EL00147 | Exploration | 19/10/2020 | 28/12/2020 | 27/12/2026 | 30.07 |
| EL00148 | Exploration | 20/10/2020 | 28/12/2020 | 27/12/2026 | 24.08 |
| TN/LML/04741 | Mining | 23/09/2024 | Application in process* | Application in process | 15.3 |
| EL00624 | Exploration | 3/05/2024 | 3/09/2025 | 2/09/2029 | 24.8 |
| EL00616 | Exploration | 3/05/2024 | 29/08/2025 | 28/08/2029 | 5.44 |
| EL00450 | Exploration | 7/05/2024 | 24/03/2025 | 23/03/2029 | 24.1 |
* TN04741 currently relates to the large mining licence application over our current retention licence tenement RL00007
Makuutu’s social licence to operate
The Makuutu Rare Earths Project has already begun to transform the lives of local Ugandans through inclusive social development growth programs and employment opportunities.
As mining progresses and exploration expands at Makuutu – the Project will continue to support local communities and economic development by unlocking Uganda’s green energy mineral revolution.
The Makuutu Rare Earths Project will integrate best practice into the flowsheet to minimise the potential for impact on the environment.
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