Basin Energy Secures Queensland Uranium and Rare Earths with Drill-Ready Targets
Basin Energy has completed its acquisition of NeoDys Limited, gaining a dominant landholding in northwest Queensland rich in uranium and rare earth elements. The company is poised to commence maiden drilling on three district-scale targets backed by government funding and recent capital raising.
- Acquisition of NeoDys Limited finalised, securing 5,958 km² in Mount Isa region
- Three drill-ready targets – sediment-hosted ionic clay REE, paleochannel uranium, granite-hosted REE
- Queensland Government funding of $150,000 secured to accelerate drilling
- $1.25 million raised via share placement to fully fund initial drill programs
- Strategic positioning adjacent to Paladin Energy’s Valhalla uranium deposit and Red Metal’s Sybella discovery
Strategic Acquisition in Queensland’s Emerging Critical Minerals Province
Basin Energy Limited (ASX – BSN) has announced the completion of its acquisition of NeoDys Limited, a private explorer with a commanding land position in the Mount Isa district of northwest Queensland. This acquisition significantly expands Basin’s footprint into one of Australia’s most promising yet underexplored regions for uranium and rare earth elements (REE), positioning the company at the forefront of critical minerals exploration in the country.
The newly acquired portfolio covers nearly 6,000 square kilometres, including areas adjacent to Paladin Energy’s Valhalla uranium deposit and Red Metal Limited’s Sybella rare earth discovery. These proximities underscore the potential scale and quality of Basin’s new assets.
Three Distinct, Drill-Ready Targets with Government Backing
Basin has identified three primary exploration targets within the portfolio, each offering compelling opportunities for rapid and cost-effective drill testing. The first is a district-scale sediment-hosted ionic clay rare earth system, supported by $150,000 in Queensland Government funding aimed at fast-tracking drilling activities. Soil sampling in this area has revealed widespread anomalism, with total rare earth oxide (TREO) concentrations exceeding 600 parts per million.
The second target focuses on a paleochannel uranium system delineated by airborne electromagnetic surveys, situated along trend from the Sybella uranium “hot” granite. This target offers the potential for roll-front style uranium mineralisation, a model that has proven successful in the region.
The third target is a hard-rock granite-hosted REE system, analogous to Red Metal’s Sybella discovery. Early auger drilling has returned significant results, including intervals with high concentrations of neodymium and praseodymium oxides, critical components for permanent magnets and green technologies.
Capital Raising and Forward Plans
To support these exploration initiatives, Basin has completed the second tranche of a share placement, raising $1.25 million. This capital injection fully funds the initial drilling programs, enabling Basin to swiftly advance its exploration agenda. Managing Director Pete Moorhouse highlighted the strategic importance of these commodities amid growing global demand and recent critical minerals agreements between Australia and the United States.
Preparations for maiden drilling are well underway, with advanced planning and stakeholder engagement progressing. Basin intends to commence with the sediment-hosted rare earth target before moving to assess the paleochannel uranium system, reflecting a methodical approach to unlocking value from these district-scale opportunities.
Looking Ahead
Beyond the immediate drill targets, Basin’s portfolio includes multiple shear-hosted uranium prospects analogous to the Valhalla deposit, further enhancing the project’s exploration upside. The company’s performance rights structure incentivises rapid progress, with milestones tied to drilling success and resource delineation.
As Basin Energy embarks on this next phase, the market will be watching closely for drilling results that could validate the significant potential of this Queensland critical minerals province.
Bottom Line?
Basin Energy’s acquisition and funded drill programs mark a pivotal step in unlocking Queensland’s uranium and rare earth potential amid rising global demand.
Questions in the middle?
- Will initial drilling confirm the high-grade rare earth and uranium anomalies indicated by surface sampling?
- How might evolving geopolitical dynamics around critical minerals influence Basin’s project development timeline?
- What are the prospects for expanding resource estimates beyond the current drill-ready targets?
