Heaps of upside for ABX with bauxite, ALCORE & REE.
ABX know REE are associated with their northern Tassie bauxite deposits so there is synergy with any exploration work done. The have only drilled about a third of the prospective resource area on older exploration tenements to the west of Launceston & are just starting on the much larger tenements to the SE, hence the very early but encouraged results just announced. Then there is the new tenements to the north around Beaconsfield which haven't been touched yet.
Things that I like about the REE deposits that ABX is finding and delineating in northern Tas are that they are very close to the surface, in ionic adsobrtion clays, close to a port and an industrial area which all spells low cost. They contain high concentrations of the highest value and most in demand rare earth oxides and have been shown to be relatively straight forward to extract and purify requiring only low concentrations of chemicals which spells high value and revenues and also low cost. They are still finding more but Mark has also spelled out this will mean that it is likely to be economic to start production early at small scale initially which means less capital. Strategic minerals in high demand also increases the likelihood of more grants.
They now have enough funds to prove up a viable project. Plenty of good news flow to come I expect.
Short term traders will miss out while chasing colour and movement elsewhere.
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