ABx Confirms High Rare Earth Extractions at Deep Leads with ANSTO Tests

Australian investors often hear about the global scramble for rare earths, but ABx Group’s latest news from its Deep Leads project in northern Tasmania may give the local market a rare home-grown advantage.

On 3 September, ABx revealed that diagnostic leach tests conducted by the Australian Nuclear Science and Technology Organisation (ANSTO) have confirmed high extractions of dysprosium and terbium, two of the most sought-after heavy rare earths. These elements are critical for permanent magnets used in electric vehicles, wind turbines and defence technologies.

The tests on a 100 kilogram bulk sample showed extraction rates above 70 per cent for both metals, validating ABx’s earlier in-house work. Importantly, the results were achieved at a pH above 4, about the same acidity as apple juice. This matters because higher pH conditions mean fewer impurities, lower reagent costs and a more environmentally benign process. As ABx managing director Mark Cooksey put it, “The ability for Deep Leads to effectively be leached above pH 4 reduces impurities and points to lower operating costs and a cleaner process.”

The Deep Leads resource already stands out in the Australian rare earths landscape. With an estimated 89 million tonnes averaging 844 parts per million total rare earth oxides, it also contains the highest ionic proportion of any clay-hosted rare earth deposit in the country. Dysprosium and terbium together make up 4.4 per cent of the total, the highest ratio in Australia and among the highest globally.

ANSTO’s tests confirmed that extractions at pH 4.5 were just as effective as at pH 4, with only a small drop-off at pH 4.7. This near-neutral chemistry sets Deep Leads apart from many Chinese clay-hosted deposits, which dominate global supply but often require more aggressive leaching conditions. Cooksey pointed out that ABx could become the first Australian producer of a mixed rare earth carbonate (MREC) from an ionic adsorption clay resource, a milestone that is on track for the December quarter of 2025.

Customers are already waiting in the wings. ABx has a memorandum of understanding with Ucore Rare Metals in North America, which is focused on rare earth processing facilities. Additional offtake discussions are under way. With demand for secure supply of heavy rare earths at an all-time high, prospective buyers are expected to be particularly interested in MREC samples with high proportions of dysprosium and terbium.

The next step for ABx is slurry testing, which will measure leaching performance at higher solids loading. If successful, this would further demonstrate the commercial potential of the Deep Leads project.

For investors, the key takeaway is that ABx is moving steadily closer to commercialisation. The combination of high extraction rates, favourable chemistry and growing international interest puts the company in a strong strategic position. In a sector where most Australian players are still grappling with complex metallurgy, ABx’s ability to extract rare earths under near-neutral conditions could be its ace in the pack.

As Cooksey summed it up, “With the program on track to deliver our first MREC sample later this year, we are advancing rapidly towards commercial outcomes.”

Whether Deep Leads ultimately lives up to its name remains to be seen, but the latest results suggest ABx is well on its way to digging up a rare Australian advantage.