Makuutu, Rare Earth Elements

(Earning up to 60%)

The Makuutu project comprises three licences covering approximately 132 km2 located some 40 km east of the regional centre of Jinja and 120 km east of the capital city of Kampala in eastern Uganda. The area has excellent infrastructure with tarred roads, nearby rail, power and water, cell-phone coverage, as well as being readily accessible throughout the year irrespective of weather conditions.

The projects geology is similar to the southern China ionic clay-type deposits, which are the cheapest and most readily accessible source of heavy Rare Earth Oxides (HREO) that are extracted through rudimentary mining and processing methods.

Mukuutu is significant in size and is understood to be potentially one of the largest ionic clay deposits outside of China, with grades consistent with these types of deposits.

The Company has defined an Exploration Target at the Makuutu Rare Earths project (Makuutu) of (ASX: 4 September 2019):

270 – 530 million tonnes grading 0.04 – 0.1 % TREO*

*This Exploration Target is conceptual in nature but is based on reasonable grounds and assumptions. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Ionic clay Rare Earth Projects vary markedly from hard rock Rare Earth projects. Typically, rare earths can be recovered from ionic clay mineralisation using mild leaching conditions and generally present practical processing advantages which are summarized in the following table: