Heavy Rare EARTHS Ltd
- ASX Code: HRE
- Market Cap: $8,321,355
Heavy Rare Earths Expands Subron Rare Earths Project in Western Australia
Heavy Rare Earths (ASX: HRE) has applied for two new exploration licences directly adjoining its Subron Rare Earths Project in Western Australia, expanding the company's land position from 152 km² to 562 km². According to the ASX announcement dated 18 August 2026, the applications cost less than $30,000 in fees and upfront rent, capturing the interpreted strike extensions of three of the project's highest-grade prospects.
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A 268% Increase in Ground for Under $30,000
The two newly applied tenements, designated E63/2595 and E63/2596, together cover 142 blocks across 410 km² and sit contiguous with the existing Subron licence. The existing tenement covered 152 km², meaning this expansion represents a substantial change in the scale of the company's land position rather than an incremental addition.
| Metric | Before | After |
|---|---|---|
| Project Area | 152 km² | 562 km² |
| Area Increase | +410 km² (+268%) | |
| Tenure Applications | 1 | 3 |
| Cost of New Applications | Less than $30,000 | |
| Structural Corridors Prospective for HREO | More than 50 km |
According to the announcement, the new ground captures the interpreted strike extensions of the Blume, Hunley, and Seawolf prospects — three targets that have returned some of the strongest drill intercepts identified at Subron to date.
Why These Prospects Matter: The Intercepts That Caught Attention
The rationale for moving on adjacent ground becomes clearer when reviewing results already reported from the Blume, Hunley, and Seawolf prospects. Per the company's 27 July 2026 ASX release, referenced again in this announcement, these targets have returned:
- 3m at 2,246 ppm TREO, 1,481 ppm HREO, 66% HREO ratio from 36m (AC321)
- 2m at 3,611 ppm TREO, 1,751 ppm HREO, 48% HREO ratio from 36m (AC363)
- 2m at 3,795 ppm TREO, 1,918 ppm HREO, 51% HREO ratio from 24m (AC361)
- 8m at 3,057 ppm TREO, 1,344 ppm HREO, 42% HREO ratio from 27m (AC360)
The Seawolf Prospect is described in the announcement as hosting the highest-grade intersection at Subron. The 8-metre interval grading 3,057 ppm TREO combines with a 42% HREO ratio to reflect both meaningful grade and width — a combination directly relevant when considering future resource definition work.
The newly acquired tenure is positioned to capture where these mineralised trends are interpreted to continue along strike. Should the structural controls interpreted to drive mineralisation persist beyond the existing licence boundary, furthermore, the company would be well positioned to test that potential through future drill programmes.
What Does the Managing Director Say?
"Securing tenure applications over 142 blocks for 410km² grows our project footprint by 268% to 562km², bringing more than 50km of prospective structural corridor under our control. Critically, this expanded ground captures the interpreted strike extensions of our standout Blume, Hunley and Seawolf prospects, areas that have already returned exceptional intercepts, including 3m at 2,246ppm TREO with a 66% HREO ratio," said Jason Barnett, Managing Director and CEO of Heavy Rare Earths.
Understanding the Strategic Review: What's Driving These Decisions?
The tenure acquisition follows directly from a Strategic Review of the Subron project currently being conducted by REE consultant Claudio Sheriff, a geologist the company states has more than 20 years of relevant industry experience.
According to the report, the review has used regional magnetic data to identify multiple structural corridors interpreted to control the distribution of HREO mineralisation at Subron. This structural interpretation has been overlaid against the existing drill dataset to prioritise targets and define discrete high-grade domains.
To date, 10 high-grade HREO domains have been identified and named after submarines, reflecting the fact that a modern submarine reportedly requires more than 4,000 kilograms of rare earths in its construction. The structural corridors interpreted to bound these domains have been named after historically significant submarine-associated seas, including Barents, Bering, and Bismarck.
Applying a greater than 300 ppm HREO cut-off to the existing drill database, the company reports the following results:
- 150 significant drill intercepts meet this threshold
- These encompass 454 individual 1-metre intervals grading above 300 ppm HREO
- The average grade across these intervals is 1,653 ppm TREO, with 579 ppm HREO, representing a 38% HREO ratio
The Strategic Review remains ongoing, with the company stating that further findings, assessments, and recommendations are expected in coming weeks.
Key Concept: What Is the HREO Ratio and Why Does It Matter?
One metric appearing repeatedly throughout HRE's reporting is the HREO ratio, and understanding this figure is useful when assessing why Subron is being positioned as a differentiated rare earths opportunity.
TREO (Total Rare Earth Oxides) refers to the combined weight of all rare earth elements in a sample, expressed in parts per million (ppm). This is the standard headline grade figure used in rare earth exploration reporting.
HREO (Heavy Rare Earth Oxides) is a subset of TREO comprising the heavier elements within the lanthanide series, including Dysprosium (Dy₂O₃), Terbium (Tb₄O₇), and Yttrium (Y₂O₃). These elements are considered critical inputs for permanent magnets used in electric vehicle motors and wind turbines, and are generally less common in economic concentrations compared to lighter rare earth elements.
The HREO ratio expresses what proportion of the TREO grade is made up of these heavier, higher-value oxides. A ratio of 38% across 454 drill intervals, rising to 66% in standout intersections, is notably significant given that many rare earth deposits globally are dominated by lighter elements such as cerium and lanthanum, which typically command lower prices.
The rare earth oxide distribution presented in the company's announcement highlights meaningful contributions from Yttrium (Y₂O₃), Terbium (Tb₄O₇), and Dysprosium (Dy₂O₃) within Subron's greater than 300 ppm HREO dataset.
Glossary of Key Terms
| Term | Definition |
|---|---|
| TREO | Total Rare Earth Oxides, the sum of all 15 rare earth oxides in a sample |
| HREO | Heavy Rare Earth Oxides, the higher-value subset including Dy, Tb and Y |
| MREO | Medium Rare Earth Oxides, intermediate elements including Sm, Eu, Gd |
| HREO Ratio | The percentage of TREO made up by heavy rare earth oxides |
| ppm | Parts per million, the standard unit for reporting rare earth grades |
| JORC | The Joint Ore Reserves Committee Code, the Australian standard for reporting mineral resources |
| Saprolite | Deeply weathered rock in which rare earth elements concentrate in clay-hosted supergene deposits |
| Aircore Drilling | A drilling technique using slim rods and a blade bit, considered cost-effective for shallow saprolite targets |
| Strike Extension | The continuation of a mineralised trend along its horizontal direction |
What Comes Next: The Company's Outlined Work Programme
According to the announcement, the company has set out a sequenced pipeline of activities intended to advance Subron while building resource confidence and testing new ground. The near-term agenda includes:
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Heritage Access fast-tracking for the two new tenements, intended to enable drill testing of interpreted HREO mineralised corridors as quickly as practicable.
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Mineralogy characterisation work using stored drill-hole material from the existing database — an approach the company states avoids the need for re-drilling and may accelerate test work timelines.
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Re-domaining of the JORC mineral resource in discussion with a resource geologist, aimed at producing a smaller tonnage but higher-value high-grade HREO resource reflecting the distinct domains identified through the Strategic Review.
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Metallurgical test work targeting specific geological layers, intended to simplify the processing flowsheet as a step toward assessing the commercial viability of Subron's heavy rare earth endowment.
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Resource infill drilling intended to convert Inferred resources to Indicated classification, and to extend the footprint of high-grade domains, with Seawolf identified as a priority target for further drilling.
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Completion of the Strategic Review, with further findings and recommendations expected in coming weeks, according to the company.
In addition, the announcement notes that Subron's location sits within practical proximity to the Esperance port and the Kalgoorlie Rare Earth Processing Facility — infrastructure factors the company states could be relevant to future development considerations.
The Investment Thesis: Scale, Grade and Cost Discipline
HRE's Subron project is presented in the announcement as a differentiated rare earth discovery, with several elements of that positioning reinforced by this tenure acquisition.
Scale: The project area has increased from 152 km² to 562 km², over what the company describes as more than 50 km of prospective structural corridors interpreted to host HREO mineralised trends.
Grade quality: The HREO ratios reported at Subron — up to 66% in standout intersections — reflect a rare earth oxide composition weighted toward the heavier end of the lanthanide series, consequently distinguishing the project from light rare earth-dominated deposits.
Cost efficiency: The company states the tenure applications, which more than tripled the project area, cost less than $30,000 in fees and upfront rent.
Exploration runway: With 10 named high-grade domains already identified and multiple structural corridors yet to be tested, the company describes material exploration potential ahead, as illustrated in the prospectivity pyramid included in the announcement's appendix material.
Preliminary metallurgy: Existing testwork reportedly demonstrated up to 91% TREO recovery from Subron South using 5% hydrochloric acid at 30°C — an early-stage data point relevant to future processing considerations.
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Why Investors Should Keep Watching HRE
The decision to secure adjacent tenure following insights from the Strategic Review — rather than waiting for confirmatory drilling — reflects a management approach focused on securing exploration ground position ahead of further testing.
With the Strategic Review still in progress, resource re-domaining under discussion, metallurgical work being planned, and Heritage Access being fast-tracked on the new tenements, the company has outlined a series of near-term milestones relevant to the project's ongoing development.
Key Takeaway
Heavy Rare Earths has expanded its Subron Rare Earths Project in Western Australia by 268% for under $30,000, capturing the interpreted strike extensions of its highest-grade HREO prospects — Blume, Hunley, and Seawolf. With a Strategic Review delivering new geological insights, a resource re-domaining process under discussion, and drill testing of new ground being prepared, the company has outlined a series of catalysts for the coming weeks and months.
Want to Know More About Heavy Rare Earths and the Subron Project?
With a 268% expansion in ground secured for under $30,000, a Strategic Review delivering new geological insights, and a clear pipeline of near-term milestones ahead, Heavy Rare Earths (ASX: HRE) is positioning itself as a differentiated player in the critical minerals space. To learn more about the company, the Subron Rare Earths Project, and how to get involved as an investor, visit the official Heavy Rare Earths investor page at hreltd.com.au.
