ABx Group Rare Earth Extraction Results Exceed 80% Recovery

ABx Group Achieves Breakthrough in Heavy Rare Earths Extraction with 80%+ Column Leach Results

ABx Group Limited (ASX: ABX) has delivered exceptional results from its latest metallurgical testing programme, achieving over 80% extraction of total rare earths from its Deep Leads ionic clay deposit in northern Tasmania. The column leach tests, conducted by the Australian Nuclear Science and Technology Organisation (ANSTO), demonstrate the technical viability of heap leaching operations and position ABx as a potential major supplier of critical heavy rare earths to Western supply chains.

The breakthrough results show over 70% extraction of dysprosium and terbium – two of the world's most sought-after heavy rare earths essential for renewable energy technologies and defence applications. Furthermore, these ABx Group rare earth extraction results exceeded company expectations and provide significant operational flexibility for commercial development.

Outstanding Extraction Results Across All Tests

The ANSTO column leach tests delivered consistently strong performance across multiple configurations. ABx Group rare earth extraction results demonstrated remarkable consistency between different processing conditions, with both test columns achieving similar final extraction rates despite using different reagent concentrations.

Key Extraction Rates by Element

The tests utilised 26 kg bulk samples from trial pit DLP002, representing the largest-scale metallurgical testing conducted to date on the Deep Leads resource. Both columns achieved remarkably similar final extractions despite using different ammonium sulfate concentrations, suggesting potential for cost optimisation through reduced reagent usage.

"These results are much better than we expected. We were hoping that heap leaching would match tank leaching, but the results suggest that heap leach could be superior to tank leach," said Dr Mark Cooksey, Managing Director and CEO.

What Is Heap Leaching and Why Does It Matter?

Heap leaching represents a potentially transformative processing method for ABx's rare earth operations. This technology offers significant advantages over traditional processing approaches, particularly for ionic clay deposits like those found at Deep Leads.

How the Heap Leaching Process Works

The process involves several key steps that make it both cost-effective and technically robust:

• Ore preparation: Clay material is prepared and formed into agglomerates to ensure proper permeability
• Heap construction: Prepared ore is stacked on specially designed impermeable pads with gentle slopes
• Solution application: Ammonium sulfate solution is applied from above, allowing gravity to distribute the leaching agent
• Collection system: Enriched solution containing dissolved rare earths is collected at the base through drainage systems
• Processing flexibility: The system can accommodate varying ore grades and compositions

Commercial Advantages for Investors

Heap leaching offers several commercial advantages that directly impact project economics:

• Reduced capital expenditure compared to conventional tank leaching facilities
• Faster construction timelines enabling quicker path to production
• Operational flexibility for processing different ore types and grades
• Scalability potential allowing production capacity expansion with market demand

In addition, the column leach tests serve as industry-standard simulations of heap leach performance, providing confidence that similar results can be achieved at commercial scale.

Technical Excellence Demonstrated Through Testing

The ANSTO tests showcased several critical technical achievements that validate the processing approach. However, the most impressive aspect was how ABx Group rare earth extraction results exceeded industry benchmarks for ionic clay processing, particularly for heavy rare earth elements.

Process Performance Metrics

The technical specifications achieved during testing demonstrate robust process control:

• Test duration: 24 days with extraction plateau achieved
• Column dimensions: 2.4 metres high, 150mm diameter
• Irrigation rate: 5.0 L/m²/hour at ambient temperature
• pH conditions: 3.8 (target 4.0)
• Bed stability: Minimal slumping (<15%) with uniform percolation

Solution Quality Indicators

The aluminium to total rare earths ratio (Al:TREE) measured less than 0.005, indicating exceptionally high solution purity. This low impurity level is crucial for producing premium mixed rare earth carbonate (MREC) products that meet stringent customer specifications.

The favourable cerium behaviour – where low-value cerium remains largely unextracted due to its non-ionic form – enhances the economic value of the final concentrate. Consequently, this increases the proportion of higher-value elements in the final product.

Physical Performance Results

Both test columns maintained excellent structural integrity throughout the 24-day testing period. The prepared clay material formed stable agglomerates that allowed consistent solution flow whilst preventing material compaction that could impede processing efficiency.

Strategic Market Positioning in Critical Minerals

Second MREC Sample Production Planned

Building on customer interest generated by ABx's maiden MREC sample produced in December 2025, the company plans to engage ANSTO to produce a second mixed rare earth carbonate sample. This marketing sample will feature:

• High heavy rare earth content particularly dysprosium and terbium
• Low impurity levels suitable for downstream processing
• Proven extraction methodology validated through scaled testing

Critical Supply Chain Position

ABx's Deep Leads project addresses a critical supply chain vulnerability in heavy rare earth production. Moreover, with China controlling over 90% of global rare earth processing, Western nations urgently need alternative supply sources for:

• Permanent magnets essential for wind turbines and electric vehicle motors
• Defence applications requiring dysprosium and terbium for advanced technologies
• High-technology manufacturing dependent on reliable rare earth supplies

The project's location in Tasmania provides stable jurisdictional advantages and proximity to established processing infrastructure.

Development Timeline and Next Steps

What Are the Immediate Priorities?

1. MREC sample production from column leach solutions for customer evaluation
2. Process flowsheet optimisation studies with engineering partners
3. Heap leach scale-up design and economic modelling
4. Customer engagement expansion using new MREC samples

Technical Optimisation Opportunities

The successful testing at lower reagent concentrations opens several pathways for process enhancement. For instance, the company can explore:

• Lower concentration leaching at 0.15M ammonium sulfate to reduce operating costs
• Environmental impact reduction through optimised reagent usage
• Process integration studies for continuous operations
• Recovery enhancement through advanced solution management

Furthermore, the diverse ABx Group rare earth extraction results provide multiple processing options, allowing the company to optimise operations based on economic conditions and customer requirements.

Investment Thesis: Heavy Rare Earths Leader in the Making

How Do These Results Validate Competitive Advantages?

Resource Quality: The Deep Leads deposit demonstrates exceptional heavy rare earth grades with high extraction rates achievable through cost-effective processing methods.

Technical Flexibility: Multiple viable processing pathways provide operational options and risk mitigation compared to single-process dependencies.

Market Timing: Growing Western demand for secure rare earth supplies aligns with ABx's development timeline and strategic positioning.

Processing Innovation: Heap leaching technology offers capital-efficient commercialisation compared to conventional tank leaching approaches.

Financial Implications for Investors

• Lower capital intensity through heap leaching adoption reduces project funding requirements
• Premium product positioning with high heavy rare earth content commands higher prices
• Multiple revenue streams possible from diverse rare earth products
• Strategic value creation through supply chain diversification initiatives

What Risks Should Investors Consider?

Whilst the technical results are highly encouraging, investors should consider that the project remains in development phase. Commercial viability depends on successful scale-up, regulatory approvals, and market conditions at the time of production.

Why Should Investors Follow ABx Group's Progress?

ABx Group has demonstrated technical excellence in validating commercial-scale heavy rare earths extraction from its Tasmanian resource. The 80%+ extraction rates achieved through column leaching represent a significant de-risking milestone for the Deep Leads project development.

Key Tracking Points for Market Watchers

• MREC sample customer feedback and potential offtake discussions
• Engineering partnership outcomes for process design optimisation
• Resource expansion results from ongoing exploration programmes
• Regulatory approvals progress for commercial development

With global supply chain security driving unprecedented demand for non-Chinese rare earth sources, ABx Group rare earth extraction results position the company as a compelling investment opportunity in the critical materials sector.

ABx Group has validated world-class heavy rare earth extraction capabilities at its Deep Leads project, with column leach results demonstrating commercial viability through cost-effective heap leaching technology. The company's strategic position in supplying critical dysprosium and terbium to Western markets, combined with proven technical excellence, makes ABx a compelling opportunity for investors seeking exposure to the rare earths supply chain transformation.

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