Chu-iil Belt

East Kostanay

Ionic Adsorption Clay (IAC) hosted Heavy Rare Earths

East Star Resources is earning into a geologically de-risked IAC hosted HREE deposit, with a 153.5 km² footprint across two licences in the East Kostanay region known as the Talairyk HREE Ion Adsorption Clay (IAC) Project. The East Kostanay region in Kazakhstan presents the same geochemical signature as the IACs of South China from where most of the world’s HREEs are currently supplied. IACs typically have lower CAPEX, lower OPEX and higher basket value than hard rock REE deposits. The market dynamics for HREEs are extremely compelling, with the desire to reduce dependence on China for supply.

Talairyk

Talairyk Project

Ionic Adsorption Clay (IAC) - The world’s principal Heavy Rare Earths production

Highlights

Two licences – Talairyk and Talairyk 1
19,962 tonnes of contained Total Rare Earth Oxides (TREO) including 4,300 tonnes of yttrium oxide at average of 7.5m from surface (1994 resource model)
Average grade of 786 g/t or 0.078% TREOs
Exploration upside within Licence (unexplored granites) and with regional expansion
Same geological signature as the IACs of South China:
- Weathered crust
- Kaolinite host
- Above a granite intrusion

Ownership (Joint Venture): East Star earning up to 90% / Phoenix (vendor) 10%

Size: 153.5 km²

Work to date

Historic database includes 128 core holes and 61 auger holes
1987-1991 prospecting work carried out resulting in discoveries of yttrium and REEs
1991-1994 prospecting and appraisal work carried out to establish size of the ore zone in plan and in depth, the morphology and conditions of occurrence of ore bodies, the qualitative characteristics of ores, and the hydrogeological conditions

Next steps

Right to earn in between 75% and 90% with money into the asset and only share based payments
Applications for additional licences underway