ABx Group Unveils Major Rare Earth Discovery in Australia

Strategic Discovery Highlights Exceptional Terbium and Dysprosium Concentrations

ABx Group Limited (ASX: ABX) has announced a significant breakthrough in its rare earth exploration program, discovering a new rare earth province in northern Tasmania with exceptional grades of crucial heavy rare earth elements terbium (Tb) and dysprosium (Dy).

The scout drilling campaign, conducted 52 kilometres east of ABx's existing Deep Leads rare earth resource, has intersected high-grade rare earth mineralisation with the standout hole TB008 returning 5,318 ppm total rare earth oxides (TREO) at just 1 metre depth, including notably high concentrations of critical elements Tb and Dy.

This ABx Group rare earth discovery in Australia represents a potential step-change for the company and could have strategic implications for global supply chains of these critical minerals.

Timing Aligns Perfectly with Global Supply Chain Concerns

This discovery comes at a pivotal moment, following three critical market developments:

1. Recent US Executive Orders incentivising domestic processing of critical minerals
2. China's export restrictions on rare earths, particularly Tb and Dy
3. Support from the Tasmanian government's Exploration Drilling Grant Initiative (EDGI)

The shallow, high-grade nature of the discovery, combined with the exceptional Tb and Dy content, positions ABx to potentially become a key player in diversifying the global supply chain for these strategically critical materials.

"ABx is stunned and delighted by discovering this shallow, high grade rare earth mineralisation so early in its exploration of the eastern tenements. It is especially exciting that all of ABx's rare earth resources and discoveries in northern Tasmania are exceptionally high grade in Dy & Tb," said Dr. Mark Cooksey, Managing Director and CEO of ABx Group.

Exceptional Rare Earth Grades with Critical Heavy Elements

The drilling program identified three discovery holes from the eight-hole scout campaign, with hole TB008 delivering the most impressive results:

These results are comparable to ABx's previous high-grade discovery at Portrush, where hole PR033 returned 2m averaging 3,057ppm TREO, including 1m at 4,812ppm.

Understanding Rare Earth Elements and Their Critical Applications

Rare earth elements (REEs) comprise 17 metallic elements which, despite their name, are relatively abundant in the Earth's crust. However, they rarely occur in concentrated forms that are economically viable to extract. These elements are essential components in many modern technologies, including:

• Permanent magnets for electric vehicles and wind turbines
• Precision-guided weapons and military radar systems
• Lasers and fibre optic communication systems
• Electronic displays and screens
• Medical imaging equipment

The ABx Group rare earth discovery in Australia is particularly significant because it contains high concentrations of heavy rare earths, especially terbium and dysprosium, which are among the most valuable and strategically important elements in the group.

Why Terbium and Dysprosium Matter

Terbium and dysprosium are among the highest-priced rare earth elements, with current prices of:

• Terbium: US$1.98 million per tonne (up 42% YTD and 197% since January 2020)
• Dysprosium: US$0.454 million per tonne (up 29% YTD and 31% since January 2020)

These elements are critical for military technologies and offshore wind turbines, with China controlling nearly 100% of global production. The high concentration of these elements in ABx's deposits sets them apart from other rare earth resources in Australia.

The unique feature of the ABx Group rare earth discovery in Australia is that all of its rare earth resources in northern Tasmania appear to be exceptionally enriched in terbium and dysprosium, potentially making the province globally significant.

Ionic Adsorption Clay Deposits: A Valuable Geological Formation

Ionic adsorption clay deposits are particularly valuable in the rare earth industry because they typically allow for simpler, more environmentally friendly extraction methods compared to hard rock deposits.

These deposits form when rare earth elements leach from underlying bedrock during weathering processes and become weakly bound (adsorbed) to clay particles. This binding mechanism allows the elements to be extracted using relatively mild chemical solutions rather than the aggressive processing required for hard rock ores.

ABx's Deep Leads project has already demonstrated exceptional extraction rates under relatively neutral conditions in tests conducted by ANSTO, which is a significant advantage for potential processing.

The grade of terbium and dysprosium (36 ppm combined) at Deep Leads is the highest of any ionic clay REE deposit in Australia and among the highest globally, a characteristic that appears to extend to this new discovery area.

Strategic Positioning for Global Supply Chains

The ABx Group rare earth discovery in Australia comes at a time when global supply chains for critical minerals are facing increasing pressure from geopolitical factors. Furthermore, navigating Africa's critical minerals opportunities has become increasingly important as countries seek to diversify supply sources. Simultaneously, the United States has issued Executive Orders to incentivise the domestic processing of critical minerals.

ABx has already established relationships with potential customers in the USA, including a memorandum of understanding with Ucore, which is planning a Strategic Metals Complex in Louisiana with US Government support.

Excellent Infrastructure and Responsible Land Management

The newly discovered area benefits from excellent infrastructure, located approximately 30 km south of Launceston city via sealed roads. The land is primarily used for sheep and cattle grazing.

ABx has more than 15 years of experience working with graziers, with a commitment to leaving land in better condition than found and operating in accordance with sound agricultural practices.

Educational Insights: Rare Earths in the Global Supply Chain

What are rare earth elements and why are they important?

Rare earth elements comprise 17 elements on the periodic table with unique properties that make them essential for many high-technology applications. Despite their name, most rare earths are relatively abundant in the Earth's crust, but they rarely occur in concentrated deposits.

How are rare earths classified?

Rare earths are typically classified into two groups:

• Light Rare Earth Elements (LREEs): Including lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), and samarium (Sm)
• Heavy Rare Earth Elements (HREEs): Including europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu), and yttrium (Y)

Why are heavy rare earths particularly valuable?

Heavy rare earths, especially terbium and dysprosium, are particularly valuable because:

1. They are less geologically abundant than light rare earths
2. They have critical applications in high-performance magnets and technology
3. Current production is almost entirely controlled by China
4. They are essential for green energy technologies and defence applications

What makes the ABx discovery significant in global terms?

The ABx Group rare earth discovery in Australia is significant because:

1. It contains exceptionally high grades of the most valuable heavy rare earths
2. The deposit appears to be part of an entire rare earth province with similar characteristics
3. It occurs in ionic adsorption clay, which typically allows for more environmentally friendly processing
4. It is located in Australia, a geopolitically stable jurisdiction

Investment Thesis: Uniquely Positioned in a Critical Supply Chain

ABx Group presents a compelling investment case based on several key factors:

1. Strategic Resource Control: ABx now controls what appears to be an entire rare earth province in Tasmania with exceptionally high grades of critical elements Tb and Dy.

2. Supply Chain Significance: With China restricting exports and the US actively seeking alternative suppliers, ABx is positioned at the nexus of a critical geopolitical supply chain issue.

3. Advanced Exploration Technology: The company's proprietary exploration technology has proven successful in identifying high-grade targets, suggesting further discoveries are possible.

4. Processing Advantages: Initial testing has shown favourable extraction characteristics under relatively neutral conditions, potentially leading to cost-effective processing solutions.

5. Infrastructure and Environment: The shallow nature of the deposits, excellent local infrastructure, and ABx's track record of responsible land management support the project's development potential.

"No other Australian company holds an entire rare earth province that is so enriched in Dy & Tb, which is potentially globally significant. Our mission is to devise a low cost, low impact method of exploiting this rare earth province," noted Dr. Cooksey.

Why Investors Should Follow ABx Group

ABx Group represents a unique opportunity in the critical minerals sector, with control of what appears to be an entire rare earth province exceptionally enriched in the most valuable and strategically important rare earth elements.

The company's focus on supplying materials for a cleaner future, combined with its three-pronged approach to rare earths, fluorine waste recycling, and bauxite mining, provides multiple pathways to value creation. With the demand for critical minerals in renewable energy expected to increase dramatically, ABx is well-positioned to benefit from this growth.

With global supply chains for critical minerals increasingly influenced by geopolitical considerations, ABx's position as a potential Western supplier of high-grade Tb and Dy from a stable jurisdiction could prove invaluable in the coming years. Australia's strategic rare earth refinery investment further demonstrates the national commitment to developing this critical industry.

As the company continues to explore its eastern tenements and advance its strategy to become a long-term supplier of rare earths, investors should closely monitor developments that could significantly enhance ABx's market position and valuation. For those interested in the sector, ABx may represent one of several high-yield investment opportunities in Australia related to critical minerals.

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