New 227 sq km Tenement Granted Adjacent to Ironback Hill REE Project
Magnetite Mines Limited has been granted a new exploration licence adjacent to its Ironback Hill rare earth element project, expanding its strategic footprint in South Australia’s Braemar Iron Region. The licence offers promising optionality for future rare earth exploration while the company maintains focus on its core iron ore development.
- Exploration Licence EL7100 ‘Braemar Creek’ granted, covering 227 sq km
- Licence borders Ironback Hill REE mineralisation area
- Secures downstream drainage corridors linked to clay-hosted REE deposits
- No exploration yet on EL7100; modest work program planned
- Focus remains on Razorback Iron Ore Project development
Strategic Expansion in Rare Earths Exploration
Magnetite Mines Limited (ASX, MGT) has taken a significant step in its rare earth element (REE) exploration strategy with the granting of Exploration Licence EL7100, known as Braemar Creek, in South Australia. This 227 square kilometre licence lies immediately adjacent to the company’s Ironback Hill project, which has already demonstrated promising clay-hosted REE mineralisation.
The new licence secures key downstream drainage corridors that geological models suggest are connected to the REE mineralisation at Ironback Hill. This adjacency provides Magnetite Mines with valuable optionality to explore potential extensions of the rare earth deposits, a critical move given the growing global demand for these minerals in clean energy and technology sectors.
Balancing Exploration with Core Iron Ore Focus
While the Braemar Creek licence opens new avenues for rare earth exploration, the company is clear that its primary focus remains the development of the Razorback Iron Ore Project. Razorback, located about 240 kilometres from Adelaide, is positioned to become a long-life, high-quality iron ore operation aimed at supplying premium products to steelmakers worldwide.
Magnetite Mines’ Managing Director Tim Dobson emphasised the strategic nature of the Braemar Creek acquisition, describing it as a logical extension of their tenure around Ironback Hill. He noted that the licence offers a low-cost, disciplined approach to exploring critical minerals without detracting from the company’s core iron ore ambitions.
Planned Work Program and Next Steps
To date, no exploration activities have been conducted on EL7100. The company plans a modest initial work program focused on compiling and reviewing existing geological and geochemical data, refining targeting models based on drainage and regolith characteristics, and conducting reconnaissance mapping and surface sampling along priority creek lines.
This groundwork will be integrated with ongoing air core drilling at Ironback Hill to determine whether follow-up drilling on Braemar Creek is warranted. All activities will proceed with appropriate heritage clearances and landholder consultations, reflecting Magnetite Mines’ commitment to responsible exploration practices.
Outlook for Investors and the Market
The granting of EL7100 represents a strategic consolidation of Magnetite Mines’ position in a region increasingly recognised for its critical mineral potential. While the presence and extent of REE mineralisation on the new licence remain unconfirmed, the company’s phased, capital-light approach mitigates risk while keeping options open for future growth.
Investors will be watching closely for results from the planned exploration activities and any subsequent updates on resource potential. The interplay between rare earth prospects and the flagship iron ore project will be key to assessing Magnetite Mines’ evolving value proposition in a competitive market.
Bottom Line?
Magnetite Mines’ new licence secures strategic ground for rare earths, setting the stage for future exploration while Razorback remains the core focus.
Questions in the middle?
- Will exploration on EL7100 confirm extensions of the Ironback Hill rare earth mineralisation?
- How will Magnetite Mines balance capital allocation between rare earth exploration and Razorback iron ore development?
- What timeline can investors expect for initial drilling results and resource updates on Braemar Creek?
