ABx Group Drills Into 89Mt Rare Earth Resource to Unlock Best Mining Zones
Key Takeaways
- ABx Group has commenced drilling at Deep Leads–Rubble Mound, targeting the specific zones that produced its maiden mixed rare earth carbonate samples, which have already received positive feedback from potential customers in Australia and North America.
- The JORC-compliant resource stands at 89 million tonnes averaging 844 ppm TREO, with a Dy+Tb content of 36 ppm — the highest of any ionic clay deposit in Australia and among the highest globally.
- ABx's proprietary in-house rapid leach testing, conducted near Launceston Airport, delivers same-day results versus weeks for external assays, allowing the drilling program to be optimised on a daily basis.
- Subsequent drilling stages will test EL27/2022 and EL28/2022 located 55 km east of Deep Leads, plus newly acquired EL25/2022, expanding the discovery footprint beyond the existing resource.
- The project is explicitly positioned to supply Western rare earth supply chains at a time when China's export restrictions on heavy rare earths — including dysprosium and terbium — are intensifying demand for credible alternative sources.
ABx Group kicks off rare earth drilling program in northern Tasmania
ABx Group (ASX: ABX) has commenced a new rare earth exploration drilling program across its northern Tasmanian tenements, with an initial focus on delineating the highest-quality, potentially mineable zones within the Deep Leads–Rubble Mound resource. The program initially targets the specific zones that produced ABx’s maiden mixed rare earth carbonate (MREC) samples, which have already received positive feedback from potential customers in Australia and North America.
The JORC-compliant resource at Deep Leads–Rubble Mound and Wind Break totals 89 million tonnes averaging 844 ppm total rare earth oxides (TREO), and contains 36 ppm Dy+Tb — the highest of any ionic clay deposit in Australia and among the highest globally. Subsequent drilling stages are planned to test EL27/2022 and EL28/2022, located 55 km east of Deep Leads, as well as newly acquired EL25/2022.
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Q1 FY27 drilling highlights at a glance
| Detail | Figure / Status |
|---|---|
| Resource size | 89 million tonnes |
| Grade | 844 ppm TREO |
| Dy+Tb content | 36 ppm (4.4% of TREO) |
| Resource classification | 41 Mt inferred, 42 Mt indicated, 6 Mt measured |
| Initial focus area | Deep Leads–Rubble Mound |
| New tenements to be tested | EL25/2022, EL27/2022, EL28/2022 |
Resource classification figures (41 Mt inferred, 42 Mt indicated, 6 Mt measured) are sourced from the ASX announcement dated 17 June 2026, as referenced in the footnotes of the source announcement.
What are ionic clay rare earth deposits — and why does it matter?
Ionic clay rare earth deposits are a specific type of mineralisation where rare earth elements are adsorbed onto clay particles in a soluble, ionic form rather than locked into hard rock. This matters enormously for processing economics. Extracting rare earths from ionic clay involves leach testing, as referenced in ABx’s exploration program.
Heavy rare earths like dysprosium (Dy) and terbium (Tb) are subject to export restrictions by China.
That supply concentration is precisely what makes ex-China sources strategically valuable. ABx’s stated goal is to supply light and heavy rare earths from Tasmania into Western supply chains, positioning the project as a potential alternative source at a time when governments and manufacturers are actively seeking them.
Proprietary rapid testing — ABx’s exploration edge
One of the more operationally significant aspects of this drilling program is ABx’s proprietary rapid testing technique. In standard exploration programs, leach test results are not known until assay results are returned from an external laboratory, a process that typically takes several weeks.
ABx has developed an in-house method conducted at its research lab near Launceston Airport that immediately produces a representative indication of the amount of ionic rare earths in exploration samples.
The practical difference for this program:
- Standard method: Weeks of waiting for external assay results before adjusting the drilling strategy
- ABx proprietary method: Immediate in-house leach results, allowing the exploration team to refine and optimise the drilling program on a daily basis
The technology is also designed for use in grade-control drilling during future production, meaning the investment in developing it has a dual application across both the exploration and operational phases of the project.
CEO’s vision — from resource to discovery
Dr Mark Cooksey, Managing Director and CEO, ABx Group
“Our objective is to better define and understand the best parts of the resource we already have, while continuing to test the potential for further discoveries across our northern Tasmanian rare earth portfolio.”
The program reflects a staged approach to building on the existing resource base. Management has outlined three clear priorities for the drilling program:
- Delineate the highest-quality and most readily extractable zones within the Deep Leads–Rubble Mound resource
- Test EL27/2022 and EL28/2022, located 55 km east of Deep Leads, where only limited drilling has been completed to date
- Conduct first-ever drilling within newly acquired EL25/2022 to evaluate the broader scale and continuity of rare earth mineralisation across ABx’s northern Tasmanian tenure
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Investment case — what this drilling program means for ABx
This is not a speculative greenfields play. The core resource is already established at JORC-compliant scale, and MREC samples have already been produced and tested with potential customers. What this program does is sharpen the picture:
- MREC samples have received positive customer feedback in Australia and North America, and drilling now defines which zones within the resource are highest quality and most extractable
- The proprietary rapid testing technique will lead to a more efficient and effective exploration program
- Multiple exploration licences across the northern Tasmanian tenement package provide optionality beyond the existing resource footprint
- ABx’s focus on supplying Western supply chains sits directly within the rare earth supply chain diversification narrative, at a time when Chinese export restrictions on heavy rare earths are heightening demand for credible alternative sources
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