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AR3 - AUSTRALIAN RARE EARTHS LIMITED


nipper
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Australian Rare Earths Limited (AR3) is a company focused on Ionic Clay hosted rare earths resource opportunities in South Australia and Victoria. The Company currently holds one granted exploration licence (EL) in South Australia and one granted EL in Victoria, and is the applicant for three further South Australian exploration licences.

 

The Company’s primary focus is our 100%-owned Koppamurra Project, a district scale ionic clay rare earth opportunity located in South Australia and Victoria containing a high value REE assemblage with low radioactivity. The Company has already had significant exploration success through the discovery of the Red Tail and Yellow Tail deposits, including the declaration of a maiden Mineral Resource the grade of which is comparable with those found in southern China, the major source of heavy rare earths.

 

The success of the Company’s first drilling campaign, incorporating aircore, auger and push-tube core techniques, was obtained from drilling of less than 5% of the Project area.

 

It is anticipated that AR3 will list on the ASX during June 2021.

 

Listing date 25 June 2021 #

Contact details http://www.ar3.com.au/

 

Principal Activities Rare earths exploration and development

 

Issue Price $0.30

Issue Type Ordinary Fully Paid Shares

Security code AR3

Capital to be Raised $12,000,000

Expected offer close date 4 June 2021

Underwriter Not underwritten. Taylor Collison Limited (Lead Manager)

 

 

 

 

 

 

 

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  • 1 month later...

AR3 opened at 40c this morning and has lifted to 53c mid afternoon.

Australia's only prospective ionic clay hosted REE deposit and one of two listed opportunities globally

 

• $12m IPO completed at $0.30 per share, enterprise value of ~$21m

• Key focus on immediately commencing key work activities at Koppamurra

• Recent 79 hole drilling program completed within and extensional to the existing resource ... Assay results expected in Q3 2021

• Program focused on targeting replication of success at Koppamurra, through defining additional clay hosted rare earth mineralisation

• Potential to quickly increase resources and proceed to development studies on a low capex, high margin operation through drilling, assay, and metallurgical testwork

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What are ionic clays?

For ionic adsorption clays, you must have:

  • .... rocks containing rare earths on the high ground,
  • ..... Ionic
    adsorption
    clays
    formed on the low ground,
  • ..... Thousands of centuries of rain,
And for extraction

  • .... Ammonium salts,
  • .... Plastic tarps, pipes, and tanks.
  • .... Oxalic acid.
  • .... Low cost labor.
  • ..... A forgiving or autocratic government

https://investorintel.com/markets/technology-metals/technology-metals-intel/ionic-adsorption-clays-heavy-rare-earth-investment-opportunities/

 

.... and a method of extraction (ionic forms of heavy rare earth salts attached to the clays are rapidly dissolved into ammoniacal solution and since this solution has thousands of times the solubilizing power for heavy rare earth salts that pure water has, these heavy rare salts may be thereby "solubilized" and concentrated by precipitation with oxalic acid ).

Whilst tongue in cheek, that gives a fair idea of what is needed. Source rocks with REs present, a depositional environment, time and water. And current practices mean that ionic clay Rare Earths are produced in China, plus Myanmar to a small extent

 

....---.-.-.-.--.--..-..-.-.-.---.-.-.....-.-.-.-.--------

 

The AR3 presentation gives a fair indication of the surficial deposits so far located, of lenticular clay beds interspersed with sandy layers, mineralised at the base where they sit on top of the local bedrock, which is the extensive Gambier limestone, and above the water table.

 

Analysis of the early resource show the layers to be at a depth between 2 and 9m. Sampling has been done with some 470 aircore, auger and pushtube drill holes, both by the SA Mines Dept and, more recently, by AR3.

 

So, what do we have, in terms of a resource? This part of the world is relatively flat, with a stable geologic history. With 725ppm as a cutoff, the company has identified laterally extensive REE mineralisation within a (on average) 2 to 3 metre thick clay horizon across two prospect areas, Red Tail (10km x 3km) and Yellow Tail (3km x 1.9km).

 

The resource contains a relatively high proportion of heavy rare earths, particularly Dysprosium and Terbium, along with Neodymium and Praseodymium, all of which are used in rare earth permanent magnets.

 

The metallurgical testwork indicates TREO (excluding Ce) recoveries of between 50% and 70%, and with low radioactivity.

 

Any mining is slated to be Shallow free digging material with low strip ratio, followed by progressive rehabilitation.

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  • 2 weeks later...

adding to leases:

• 649 sq.km. of additional key exploration tenure in South Australia has been granted, expanding the Company footprint at its flagship Koppamurra project by more than 40%

• Total granted exploration tenure at Koppamurra is 2,136 sq.km.

• An additional 1,911 sq.km. in South Australia remains under application, for a potential combined tenure position in excess of 4,000 sq.km.

• The area recently granted has already shown to be prospective for clay hosted rare earths, through the AR3 assessment of historic drilling

Next Steps

The Company is now planning a significant drilling program for Q4 2021, incorporating a combination of extensional drilling from the known Red Tail and Yellow Tail Inferred Resources and regional prospectivity confirmatory drilling to determine priority areas for future resource definition.

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  • 4 weeks later...

AR3 seems to have thrown off the early day syndrome, where early investors take some off the table (very profitably, in this case). With shares IPOing at 30c, there was a run from 40c to 90c in the first few days, then a retreat to mid 60s in the two weeks following. Since then, and most of the RE sector is on a bit of a roll, a steady incremental rise sees trading at 87c today.

 

The emergence of Frontier Resources FNT as a possible third ionic clay RE player, alongside IXR and AR3, has given more focus to this form of RE exploration. FNT leases are also in the Murray Basin, on the SA/ Vic border; these FNT leases are on the periphery of AR3 ground. Clearly, tFrontier is attracted to the region, as it writes in its Presentation:

REE mineralisation in the Murray Basin at Australian Rare Earths (ASX:AR3) Koppamurra Project is hosted by clay material interpreted to have been deposited onto a limestone base (Gambier Limestone) and accumulated in an interdunal, lagoonal or estuarine environment. The mineralogy of the clay is indicative of formation under mildly alkaline conditions in a marine or coastal environment from fine grained sediments either river transported or windblown thereby supporting this interpretation.

Mineralogical test work conducted on a clay sample from the Koppamurra Project area established that the dominant clay minerals are smectite and kaolin, and the few REE rich minerals detected during the SEM investigation are not considered inconsistent with the suggestion that a significant proportion of REE are distributed in the sample as adsorbed elements on clay and iron oxide surfaces.

 

Work to date suggests that the source of the REE at Koppamurra is most likely basalt associated alkali volcanics of the Newer Volcanics Province in south eastern Australia, with the wider Koppamurra project area being considered prospective for rare earth mineralisation. However, whilst Koppamurra clays display ionic character, and the deposit shares a number of similarities with both ion adsorption clay deposits and volcanic ash fall placer deposits, there are also a number of differences, with further work required before a genetic model for REE mineralisation at Koppamurra and the broader Murray Basin can be conclusively defined. In addition, further work is required to better define metallurgical recoveries, process flow sheets, effective mining methods, and project economics.

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probably realistic to think the peak a few days ago was part of the meme stocks theme, run by news sheets and chat rooms. The run from 75c to $1.00 was real, the two day wonder peak was froth, with a retreat to $1.10 almost as quick.

 

 

Now we have had a couple of days to find the new level, and on the backburner for the excitable crowd, perhaps until news of drilling results, possible thirst for capital, BFS and all that emerges, next time around.

 

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meme or no meme. ... the numbers will do the talking

 

Highlights

• Recently completed 79 hole drill program delivers excellent results, confirming the potential for Koppamurra to host deposits of high grade rare earth ionic clays of global significance

• Drill program focused on testing areas adjacent to and extensional from the existing Red Tail and Yellow Tail resources

• All drillholes that reached target depth returned significant intersections at a 500ppm Total Rare Earth Oxides (TREO) cut off

• A trend of high grade intersections is evident 3.5km along strike from the Yellow Tail resource area. Significant intersections range from 2000ppm to 4500ppm TREO

• Drilling conducted adjacent to the Red Tail resource area has supported continuation of mineralised clay intervals onto the adjacent private land, where land access agreements have been negotiated. Significant intersections range from 1000ppm to 1600ppm TREO

 

up 10% to $1.10 and as high as 1.18

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