Avonlea Rare Earth Project

History

Drilled for sapphire in 1988, first assayed for rare earths in 2022

G&J The Gem Merchants drilled HDD106 looking for sapphire and the core went to the GSNSW core library. Double Eagle Resources re-assayed it in 2022, did no fieldwork, and let the ground go in 2026. We applied for it in October.

1988
HDD106 drilled
37 m diamond hole for sapphire. Core stored at Londonderry.
2008-13
Bauxite exploration
Volcan drilled ~130 aircore holes nearby. Assayed for alumina only.
2022
Core re-assayed
5.26 m @ 1,283 ppm TREO from 5 m, incl. 1.35 m @ 2,367 ppm.
2026
Licences lapse
Double Eagle's ELs expired in April and May with no fieldwork done.
Oct 2026
ELA7140 lodged
322 km² over HDD106 and the host clay. No other applications over it.

Market

NdPr is about half the value. Dy and Tb sell for much more outside China.

Neodymium and praseodymium (NdPr) are the main magnet metals. Dysprosium and terbium are added so magnets keep working at high temperature, in EV motors, wind turbines and defence equipment. China supplies most of the market, and prices outside China for Dy and Tb are 5 to 12 times the Chinese price.

Price in China vs outside China

US$ per kg of oxide

China (SMM, 15 Oct 2026)Outside China (see table)

Data table

Where the value is at HDD106

Share of in-ground value at China prices, 5.26 m composite

NdPr: 24% of TREOAbout half the value at China prices.
Dy + Tb: 5.4% of TREOThe same share as ABx Group's Tasmanian clay product (5.4%). Most clay deposits have less.
49% heavy rare earths + YThe US and Australia are now supporting non-Chinese supply with price floors, offtakes and a strategic reserve.

Geology

The HDD106 profile looks like an ionic clay

In an ionic clay the rare earths sit loosely on the clay surfaces and wash off at room temperature with a weak salt solution, which makes these deposits among the cheapest to process. Not all clay deposits behave this way, and how much of Avonlea's comes off is what our leach test will tell us.

HDD106 TREO down the hole

ppm by sample, weathered Texas Beds clay

SoilPurple clay Lower clayWeathering front

Data table

Rare earth mix vs ABx Group's product

Share of TREO (%)

HDD106, 5.26 m compositeABx MREC (cerium removed)

Data table

Cerium anomalyCe is enriched at 4-5 m and depleted in the high-grade zone below. This is typical of ionic clay profiles.
Heavy rare earths sit deeperThe heavy rare earths are 32-72% of the total below 5 m, against 17-26% above. That sorting happens when rare earths are carried down by groundwater and stick to the clay.
Up to 8x enriched against thoriumRare earths rise about 8x relative to thorium in the 1.35 m peak (about 4.5x across the 5.26 m zone) while thorium and zirconium stay flat, so they weren't added as mineral grains.
Shallow, soft hostMineralisation starts at 5 m in weathered clay, under about 2 m of soil.

HDD106 core photos from 1988, 0 to 18 m — The HDD106 core is still in the GSNSW core library. Only quarter core from 0-13.31 m has been taken, so we can run leach tests on it before drilling. Click to enlarge.

Extent

The host clay continues across the licence

The rare earths are in the weathered top of the Texas Beds. Volcan's bauxite drilling logged the same clay around HDD106 and across the licence, but none of it was assayed for rare earths.

~350 mfrom HDD106, two Volcan holes ended in the same clay after 7.5 m and 12.5 m of it

131Volcan aircore holes inside ELA7140, never assayed for rare earths

41 km²of host clay modelled under 5-15 m of cover inside ELA7140

Geological model of how the rare earth clay formed — Geological model (schematic, not to scale). The Texas Beds weathered to clay, basalt flows covered and preserved it, and today the clay is close to surface along the edge of the basalt.

Map of modelled depth to the host clay — Modelled depth to the host clay from historic drill logs. Green and yellow are shallow. Click to enlarge.

Tenure

ELA7140: 108 units, 322 km², lodged 30 October 2026

The application covers HDD106 and the host clay around it. There are no other Group 1 or Group 10 applications over the ground. It is mostly freehold farmland with good road and power access.

Groups 1 and 10rare earths, scandium and monazite; Group 1 also covers gold, silver and base metals

16 kmfrom Inverell

32 km / 24 kmof major roads and power lines inside the licence

Tenure map showing ELA7140 — ELA7140 and surrounding titles (NSW MinView, 31 Oct 2026). The nearby gemstone licences are Group 6 and don't affect our application.

Work program

Leach testing first, then aircore drilling

The HDD106 core is still in the GSNSW core library, so we can test whether the rare earths leach before we spend money on drilling.

✓ Done
Apply for the groundELA7140 lodged 30 October 2026
Next
Leach test the HDD106 coreDesorption tests, phosphorus assays and mineralogy
Then
Re-assay old samplesLocate and re-assay Volcan and ABx aircore pulps
Then
Aircore drilling56 shallow holes on the host clay, starting with twins of three Volcan holes that logged purple clay
Then
Infill and resourceInfill drilling and column leach tests toward a maiden JORC resource

Map of the indicative year-1 drilling program — Indicative year-1 aircore program. Hole positions depend on the leach test results and landholder access.

Risks

Key risks

This is an early stage project with one assayed hole. For each risk, this is what the data already tells us and how we will test it.

Leachability

Recovery with a weak salt solution hasn't been tested yet.

The profile has the marks of rare earths carried down by groundwater and held on the clay: a cerium cap over a cerium-poor zone, heavy rare earths sitting deeper than light ones, and up to 8x enrichment against thorium. ABx's Tasmanian clay, with a similar mix, averaged ~50% in desorption tests and over 80% in a column leach.

desorption tests on the HDD106 core

Mineralogy

Some of the rare earths could be in phosphate or iron oxide minerals that don't leach.

The rare earths rise with metals that sit on clay (zinc, caesium, nickel), not with those that follow iron oxides (scandium, vanadium, chromium). Thorium and zirconium are flat, so there's no monazite or zircon, and uranium shows none of the build-up phosphate minerals usually cause. Phosphorus is low above the zone (0.08-0.15% P₂O₅); our first core assays will measure it in the zone.

phosphorus assays, XRD and SEM mineralogy, and an acid leach of the residue

Grade continuity

Only one hole has been assayed. Cores in the same rock 17 km away are lower grade.

Two Volcan holes ~350 m from HDD106 ended in the same host clay after 7.5 m and 12.5 m of it, and several holes up to 15 km away logged similar purple clay. The clay is a weathering blanket, not a narrow vein.

twin three Volcan holes, then aircore drilling across the host clay

Land access

The area is farmland and about half is mapped as strategic agricultural land.

About 93% is private farmland; Crown land, stock routes and reserves make up the rest, and Nullamanna National Park is excluded. A native title claim covers 3.6%, at the western edge. Strategic agricultural land doesn't restrict exploration, and Inverell is 16 km away.

landholder agreements from grant; Gateway assessment before any mining

3D model

3D model of the host clay

Drag to rotate and scroll to zoom. Turn off the basalt to see where the host clay is close to surface.

▶ Open the 3D model