ABx’s Rare Earths Discovery Puts Tasmania on the Global Map

ABx Group (ASX: ABX) has turned up something rare indeed—literally. A scout drilling campaign in Tasmania has uncovered what the company believes is a “new rare earth province,” punctuated by a standout intersection of over 5,000 ppm total rare earth oxides (TREO) at just 1 metre depth.

The campaign, announced to the ASX on 5 May, tested ground 52 kilometres east of ABx’s established Deep Leads resource. One of the eight shallow auger holes, TB008, returned exceptional grades, particularly of terbium (Tb) and dysprosium (Dy)—the heavy rare earths vital for permanent magnets used in electric vehicles, defence systems, and offshore wind farms.

The economic case is compelling. As of early May, terbium is trading at nearly US$2 million per tonne, up 42% this year. Dysprosium is following closely, at US$454,000 per tonne, up 29% year-to-date. Since January 2020, terbium has surged 197%. China controls virtually the entire global supply of these elements—and has just tightened export restrictions.

“The world’s watching these markets, and we’re now in the game,” said ABx CEO Dr Mark Cooksey. “This is potentially a globally significant discovery. We’ve found the highest Dy and Tb grades of any clay-hosted REE deposit in Australia.”

ABx’s clay-hosted deposits are particularly attractive due to their shallow nature and low radioactivity. Hole TB008 intersected a peak 5,318 ppm TREO at 1–2 metres depth. Holes TB002 and TB006 also hit high grades, and all three terminated in mineralisation, indicating potential for deeper extensions.

This early success stems from ABx’s proprietary exploration targeting method, trialled on tenements EL27 and EL28. The campaign was co-funded by Tasmania’s Exploration Drilling Grant Initiative (EDGI)—a 50% cost offset that clearly accelerated progress. Despite the use of a low-impact auger rig, which often couldn’t reach bedrock, ABx has proven the presence of significant mineralisation.

The Deep Leads project itself already holds an 89 Mt resource at 844 ppm TREO, with ionic adsorption clays shown to yield high rare earth recoveries under near-neutral conditions—confirmed by testwork at ANSTO. The new discovery could be an extension of the same geological system, potentially multiplying ABx’s inventory.

Notably, ABx is well placed to monetise this advantage. It has an MoU with Ucore Rare Metals, which is developing a Strategic Metals Complex in Louisiana, with U.S. government support. This aligns perfectly with recent White House executive orders promoting domestic REE processing. Meanwhile, China’s latest move to restrict exports of Dy and Tb adds urgency for Western-aligned supply alternatives.

The project area sits on freehold grazing land about 30km south of Launceston, with sealed road access and cooperative landholders—advantages not to be underestimated in Australian resource development.

For investors, the key takeaway is this: ABx isn’t just chasing rare earths—it may have just discovered a globally relevant supply of two of the most strategic metals on the planet. Add in geopolitical tailwinds, regulatory support, and downstream interest, and this junior could be fast graduating from explorer to critical minerals player.

Further drilling is likely to follow, with heavier rigs and more targets on the radar. If ABx continues to intersect similar grades and lateral continuity, the rerating potential is considerable.

This could be one of the most significant rare earth discoveries in Australia this year—and perhaps the most geopolitically timely.