ioneer ups Rhyolite Ridge mineral resource estimate
ASX- and Nasdaq-listed ioneer has announced a 45% increase in the mineral resource estimate for its Rhyolite Ridge lithium/boron project, in Nevada, US. The updated estimate, which incorporates new data from 12 drill holes completed in 2024, now stands at 510-million tonnes containing 3.97-million tonnes of lithium carbonate equivalent and 14.66-million tonnes of boric acid equivalent.
The updated estimate is entirely within the fully permitted project area, which received approval from the US government in October 2024 and is backed by a $996-million loan from the US Department of Energy’s Loan Programs Office. Notably, 81% of the mineral resource now falls under the measured and indicated categories, strengthening the project's economic outlook ahead of an anticipated ore reserve estimate release in April 2025.
ioneer MD Bernard Rowe highlighted the project’s flexibility, citing its ability to adapt to market conditions by adjusting the production balance between lithium and boric acid.
“No other lithium project has this flexibility and economic advantage. In times of low lithium pricing as exists today, the company can prioritize the high-boron ore (Stream 1) over the low-boron ore (Stream 2) to optimise the relative proportion of total revenue derived from boron,” he stated. About 30% to 40% of the project’s revenue is expected to come from boron, with lithium accounting for the remaining 60% to 70%.
The announcement follows a setback for the project, as Sibanye-Stillwater last week decided to withdraw from its planned joint venture (JV) with ioneer. The Johannesburg- and New York-listed miner had been set to acquire a 50% stake in the JV, with ioneer retaining operational management responsibilities. However, following a management review and due diligence, Sibanye’s board determined that Rhyolite Ridge did not meet its investment hurdle rates at prudent pricing assumptions and opted not to proceed with the project.
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