Basin Energy strikes rate earth & uranium hotspot deal in Queensland

Basin Energy has secured a binding agreement to acquire one of Queensland's most promising uranium and rare earth portfolios, situated near Paladin Energy's Valhalla uranium deposit and Red Metal's Sybella rare earth find. This acquisition paves the way for three exciting exploration models, each ready for drilling and offering significant potential for near-term discoveries.

• Extensive Paleochannel Network - Identified through AEM geophysical surveys, these uranium-prospective paleochannels lie adjacent to the uranium-rich Sybella Granite. As ancient river systems are buried beneath younger sediments, they often host uranium accumulations at redox boundaries.
• Granite-hosted REE potential - Comparable to Red Metal's major Sybella discovery, with auger drilling already delivering standout intercepts, including 5m @ 1,951 ppm TREO and 578 ppm Nd+Pr oxide.
• District-scale ionic clay REE potential - A compelling sediment-hosted exploration model, backed by $150,000 in Queensland Government funding to accelerate drilling. Early soil sampling has pinpointed multiple zones exceeding 600 ppm TREO.

Get more industry insights from - Global Aluminium Industry Outlook 2025

The portfolio also encompasses several untested Valhalla-style uranium targets, marked by radiometric anomalies located near established deposits with a combined resource of 116 Mlbs U₃O₈. Basin Energy Ltd has raised USD 1.25 million from institutional and sophisticated investors at USD 0.025 per share, reflecting a 9 per cent premium to the 20-day VWAP, to support its strategic acquisition and kick-start immediate exploration. Together with Queensland government funding, this position will enable the Basin to be fully financed for launching multiple drilling programs across its high-priority targets.

"This acquisition propels Basin into Australia's uranium and rare earth exploration landscape. These projects deliver exceptional geology, strategic scale and compelling upside across two of the most critical mineral sectors of the energy transition. With drill-ready targets and a low-cost structure, this portfolio is primed to deliver value for shareholders," said Managing Director Pete Moorhouse.

Why this acquisition is important?

What makes this acquisition especially attractive is its geological setting. The Sybella Batholitha vast granitic intrusion hosts zones enriched in rare earth elements, including Red Metal's Sybella Discovery, which recently reported a JORC Inferred Resource of 4.795 Bt grading 302 ppm NdPr and 28 ppm DyTb. The Sybella granites, which are also rich in uranium, are considered the source rocks for Paladin Energy's nearby Valhalla uranium deposits. This dual potential for both rare earths and uranium greatly enhances the strategic importance of the project.

Basin Energy's exploration is backed by cutting-edge geophysical data, including a 2007 airborne electromagnetic (AEM) survey. This survey mapped an extensive network of paleochannels in the Barkly Tablelands, which trace back to the Sybella Batholith. Along with identifying this broad paleochannel system, the survey also uncovered a highly conductive layer in the sedimentary sequence, about 12 meters thick and located between 20 and 32 meters deep, covering more than 1,000 km². This conductive layer is likely a clay unit formed by the deep weathering of the Sybella granites, pointing to strong potential for rare earth mineralisation hosted in clay.

Also Read: Rare earths market turns volatile as US intervenes and China tightens control

Rare Earth Elements – Important for clean energy

The project's rare earth element (REE) potential is centred on neodymium (Nd) and praseodymium (Pr), critical inputs for permanent magnets used in electric vehicles and wind turbines. REEs comprise 17 metallic elements, including the 15 lanthanides plus yttrium and scandium. While not truly 'rare,' they seldom occur in concentrations suitable for economic extraction.

The most commercially valuable are the so-called 'magnet metals' (Nd, Pr, Dy, Tb), vital to the clean energy transition. Basin Energy's initial auger drilling has already confirmed significant mineralisation, with standout results at the Newmans Bore prospect returning 5m @ 1,951 ppm Total Rare Earth Oxides (TREO), including 578 ppm Nd+Pr oxide.

These intercepts ended in mineralisation due to auger refusal, highlighting the significant potential at greater depths. Exploration is set to kick off in Q4 2025, utilising both air core drilling and reverse circulation methods.

• Air core drilling on the Barkly Tablelands uranium and REE targets
• RC drilling at the Newmans Bore granite-hosted REE target
• Mapping and sampling of the West Valhalla Radiometric targets

With drilling is expected to begin in Q4 2025 across several high-priority targets, Basin Energy is emerging as a well-funded explorer with strong near-term opportunities. The company's mix of drill-ready prospects, proximity to established deposits, government-backed funding, and fully financed exploration programs puts it in a prime position to unlock significant value for its shareholders as it progresses with its critical minerals portfolio.

Also Read: Lindian secures funding and greenlights for Kangankunde rare earths project