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Uganda

Makuutu Project

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Overview

Mine TypeOpen Pit
StagePermitting
Commodities
  • Scandium
  • REE
Mining Method
  • Truck & Shovel / Loader
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SnapshotMakuutu ranks amongst the world’s largest and most advanced ionic adsorption clay (IAC) deposits.

During H2 2023, IonicRE initiated the construction of a Demonstration Plant on site at Makuutu to process ionic adsorption clay (IAC) mineralisation to produce mixed rare earth carbonate (MREC) samples for offtake.

During the September quarter 2024, the demonstration plant activities continued, with MREC production being used to support ongoing offtake negotiations for Makuutu's magnet and heavy rare earth-rich basket. The first shipment of samples has left Uganda and is being analysed in Australia before being dispatched to potential offtake partners.

Owners

SourceSource
CompanyInterestOwnership
Rare Earth Elements Africa Proprietary Ltd. 37.5 % Indirect
Ionic Rare Earths Ltd. 60 % Indirect
Rwenzori Rare Metals Limited a Ugandan private company which owns 100% of the Makuutu Project. IonicRE is a 60% owner of Rwenzori, and has signed a conditional share purchase agreement to acquire an additional 34% interest in the strategic Makuutu Rare Earths Project, taking its ownership to 94% on completion.

The remaining stake is held by the South African registered Rare Earth Elements Africa Proprietary Limited (REEA) and by Ugandan Partners.

Contractors

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Deposit type

  • Laterite
  • Sedimentary
  • Saprolite

Summary:

The Makuutu deposit is interpreted to be an ionic adsorption REE clay-type deposits.

The near-surface mineralisation occurs under approximately three meters of cover. Ionic adsorption clay (IAC) REE mineralisation involves REEs mainly adsorbed onto the surfaces of clay minerals as hydrated ions or hydroxyl-hydrated ions, hosted within the regolith (laterite profile). The Makuutu mineralisation is interpreted to be in a flat-lying weathered profile, including cover soil, lateritic caprock, clays transitioning to saprolite and saprock, with fresh shales, siltstones, and mudstones below. Pit mapping and diamond drilling indicate the mineralised regolith to be generally horizontal.

The mineralisation is contained within the tropical lateritic weathering profile of a basin filled with sedimentary rocks including shales, mudstones and sandstones potentially derived from the surrounding granitic and mafic rocks. These rocks are considered the original source of the REE which were then accumulated in the sediments (via ionic bonds with the clays) of the basin as the surrounding rocks have degraded. These sediments then form the protolith that was subjected to prolonged tropical weathering.

The weathering developed a lateritic regolith with a surface indurated hardcap, followed downward by clay rich zones that grade down through saprolite and saprock to unweathered sediments. The thickness of the regolith is between 10 and 20 metres from surface.

The REE mineralisation is concentrated in the weathered profile where it has dissolved from its primary mineral form, such as monazite and xenotime, then ionically bonded (adsorbed) or colloidally bonded on to fine particles of aluminosilicate clays (e.g. kaolinite, illite, smectite). The adsorbed and colloidal REE is the target for extraction and production of REO at Makuutu.

Dimensions
The overall defined mineralised zone extends across 11 discrete prospect areas defined by radiometric and topographical features. The overall strike for the eastern-most to westernmost prospects is approximately 37 kilometres, with an across strike extent of ~3,000m and an average vertical thickness of 18m.

The top of the mineralised zone is defined by a thin surficial soil / hardcap zone that averages 3.5m in thickness. The base of the mineralised zone is defined by the top of the saprock/fresh rock boundary which extends to an average vertical depth of 17m.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Scandium Oxide t 15511
REE Carbonate kt 1.240

Operational metrics

Metrics
Annual ore mining rate  ....  Subscribe
Annual processing capacity  ....  Subscribe
Stripping / waste ratio  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Total tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2023 study.

Production Costs

CommodityUnitsAverage
Cash costs REE USD  ....  Subscribe
Cash costs REE USD  ....  Subscribe
Assumed price Scandium USD  ....  Subscribe
* According to 2023 study / presentation.
** Net of By-Product.

Operating Costs

CurrencyAverage
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2023 study.

Project Costs

MetricsUnitsLOM Total
Pre-Production capital costs $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 1,309
G&A costs $M USD 260
Total OpEx $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jan 8, 2025
....................... Subscription required ....................... Subscription required Subscription required Jan 8, 2025

Aerial view:

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