Basin Energy Starts Drilling New Rare Earth Play Near Newmans, Results Due December
Key Takeaways
- Basin Energy has started maiden RC drilling at Rochedale, up to 7 holes to 150 m, testing a phosphorite-hosted heavy rare earth model new to the Mt Isa district.
- The Queensland Government's CEI0670 grant covers up to $76,413 of the program, so the first-pass test adds a second rare earth concept without a share issue.
- Rochedale has no resource or reported grade, and the historical phosphorite data at 80 to 150 m guiding the holes is unverified.
- Assay results are due in December 2026, the next hard catalyst for the stock.
- Newmans is the proven asset, with a footprint of at least 6.7 km and 13 of 18 follow-up holes intersecting shallow magnet rare earth mineralisation.
Maiden drilling underway at Rochedale heavy rare earth prospect
Basin Energy (ASX:BSN) has commenced maiden reverse circulation (RC) drilling at the Rochedale heavy rare earth prospect, within its 100%-owned Sybella-Barkly Project. The prospect sits approximately 15 km southwest of the Newmans rare earth discovery near Mt Isa, Queensland.
The program targets heavy rare earth enrichment associated with phosphatic sediments, which the company describes as a new model for the district. It is supported by non-dilutive funding (money that does not require issuing new shares) of up to $76,413 from the Queensland Government under collaborative exploration initiative (CEI) CEI0670.
Assay results are expected in December 2026.
Key highlights
- Maiden drilling has commenced at Rochedale, within the 100%-owned Sybella-Barkly Project
- Drilling is designed to test heavy rare earth potential associated with phosphatic sediments
- The program is co-funded by the Queensland Government’s Collaborative Exploration initiative
- Assay results are expected in December 2026
- Preliminary mineralogical test work at Newmans is underway
For investors, this is a small, targeted first-pass test. It adds a second rare earth concept alongside Newmans without a large call on company funds, though Rochedale has no resource or grade reported yet.
Pete Moorhouse, Managing Director
“Rochedale gives us another very different rare earth opportunity within the Sybella-Barkly Project. While Newmans is focused on shallow mineralisation developed within weathered granite, this program is testing the potential for heavy and magnet rare earth enrichment within phosphatic sediments…”
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How does the Rochedale drill program work?
Program design
Basin proposes to complete up to 7 RC drill holes, with depths up to 150 m, on existing disturbed ground. The holes will test for heavy and magnet rare earth enriched phosphorite units at the top of the Cambrian-aged sedimentary sequence within the Georgina Basin.
Historical drilling recorded a phosphorite-rich unit between 80 and 150 m deep. That data has not been verified, and the company says it will be used along with regional geological interpretation to target the drilling.
Why phosphorites?
Phosphorites are sedimentary rocks rich in phosphate. According to the announcement, the rare earths in these rocks are hosted directly within the phosphate mineral carbonate fluorapatite, meaning they are naturally concentrated within the rock.
The company points to academic research by Valetich et al., which reported that some southern Georgina Basin phosphorite zones show total rare earth element concentrations, including yttrium, of up to approximately 0.5%. That is third-party research, not a Basin result.
The enrichment includes magnet rare earth elements such as neodymium and praseodymium, along with dysprosium, terbium and yttrium. The announcement links these to permanent magnets, electric vehicles and advanced defence technologies.
Basin cites several points as support for the model:
- The rare earths are hosted directly within carbonate fluorapatite.
- The research reports concentrations of up to approximately 0.5% in some zones.
- The study states the mineralisation is geologically controlled and predictable.
- Southern basin phosphorites formed under conditions that favour strong rare earth element uptake.
Moorhouse said that if the concept works, it gives the company “another exploration model that we can start applying across our broader project area.”
What is the Newmans momentum and Collaborative Exploration Initiative?
Newmans track record
Newmans is a different story. Its discovery now extends over at least 6.7 km, and it is shallow mineralisation developed within weathered granite. Rochedale is a separate geological model and is not a discovery.
The Newmans footprint expansion to 6.7 km came from follow-up RC drilling in which 13 of 18 holes intersected shallow magnet rare earth mineralisation, and MREO has held at roughly 21% of TREO across the enlarged system.
Hole SBRC26014 shows the thickness on offer at Newmans. The results below use magnet rare earth oxides (MREO), which include Nd2O3, Pr6O11, Tb4O7 and Dy2O3, and total rare earth oxides (TREO).
| Interval | Grade MREO | TREO | Starting depth |
|---|---|---|---|
| 25 m | **458 ppm** | **2,164 ppm** | **4 m** |
| including 12 m | **634 ppm** | **2,940 ppm** | **8 m** |
| including 3 m | **1,147 ppm** | **5,253 ppm** (1,042 ppm NdPr oxide and 106 ppm DyTb oxide) | **16 m** |
Government backing
The CEI is funded under the Queensland Resources Industry Development Plan, with $17.5 million available until June 2027. This is round 10 of funding, and the last round available under the current initiative.
Following a six-month confidentiality clause, geoscientific data from all successful programs in each round is made publicly available online.
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What are the next steps for Basin Energy?
The company states it remains funded to undertake planned next steps, which include:
- Drilling at the Rochedale heavy rare earth prospect
- Preliminary mineralogical investigations from Newmans
- Detailed interpretation of the expanded mineralised zone at Newmans
- Stakeholder engagement and heritage clearances to support follow-up and future resource-definition drilling, subject to results
- Assessment of additional preserved weathering targets across Newmans and the regional Sybella Batholith
Basin holds 5,805 km² of strategic landholding west and southwest of Mount Isa. About 685 km² is known or interpreted to be over the Sybella Batholith, a rare earth and uranium fertile granite system.
The company believes its preserved weathering model may have important implications for the wider Batholith, where auger drilling in 2023 and surface samples identified multiple rare earth surface anomalies. It has commenced applying remote-sensing filters, tuned from Newmans observations, to assess and prioritise these opportunities.
The next catalyst is the Rochedale assay results, expected in December 2026. Those will show whether the phosphorite concept holds up in Basin’s own drilling.
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