Key Highlights

  • Significant rare earth intercepts were returned from 56 of 60 holes (to 19 October 2026), with the widest intercept being 5.5m at 1,035ppm TREO (343ppm MREO) in BAK0284.
  • A single caustic conversion and acid leach sighter test extracted 99% of magnet rare earth oxide (MREO) to the acid leach solution, a marked improvement from previous leach testwork achieving up to 74%.
  • The Phase 1 program covers 400 holes at approximately 25m depth on an 800m x 800m grid; 89 holes totalling 2,168m had been drilled to 15 October 2026.
  • Cash at 30 September 2026 was A$3.45 million following exploration expenditure of A$1.50 million in the quarter.

Barkly Rare Earths Limited (ASX:BAK) reported on its quarterly activities for the September 2026 quarter, a period defined by the commencement and rapid early progress of its Phase 1 resource drilling program at the Barkly Project in the Northern Territory. The project covers 5,030 square kilometres and is 100% owned by the company, hosting an existing Inferred Mineral Resource of 40 million tonnes at 2,100ppm total rare earth oxide (TREO), including 710ppm magnet rare earth oxide (MREO), reported in accordance with the JORC Code (2012).

The Phase 1 program comprises approximately 400 shallow reverse circulation (RC) holes averaging approximately 25 metres in depth, drilled on a grid of approximately 800 metres by 800 metres. The objective is to systematically test for extensions of rare earth mineralisation across the Exploration Target, test for repetitive mineralised sequences, build geological understanding and source samples for metallurgical testwork.

Widespread Intercepts Across 23 Kilometres

Since the first Phase 1 assay results were released on 16 September 2026, significant intercepts have been reported from 56 of 60 holes. The initial 28 holes returned significant intercepts in all cases, with mineralisation encountered across a strike length of 23 kilometres, from as shallow as 9 metres downhole. Subsequent results from 6 October 2026 widened 11 of those initial 28 intercepts after follow-up sampling above and below the pXRF-screened intervals.

The highest-grade single intercepts include 1.5m at 3,118ppm TREO (1,002ppm MREO) in BAK0138 and 1.5m at 2,973ppm TREO (1,086ppm MREO) in BAK0289. The widest intercept reported to 19 October 2026 is 5.5m at 1,035ppm TREO (343ppm MREO) in BAK0284. Across the 58 significant intercepts in 56 holes, MREO represents 29–39% of TREO in 55 of those intercepts, consistent with the 34% MREO ratio of the existing Inferred Mineral Resource. Uranium and thorium grades were consistently low across reported holes.

Metallurgical Breakthrough

Alongside the drilling results, Barkly reported a significant metallurgical result. A single caustic conversion and hydrochloric acid leach sighter test, completed independently by Nagrom, extracted 99% of MREO to the acid leach solution on a calculated-head basis. This compares to a maximum recovery of 74% achieved in previous leach testwork using the same general approach. The company has been careful to note that this result is from a single small, non-representative composite and requires repeat and confirmatory testwork before conclusions can be drawn about process route performance at scale.

The company appointed Lu Zhang of MinPro Consult as an independent metallurgical consultant to oversee the design, management and reporting of metallurgical testwork, strengthening the technical governance framework as the project advances.

Exploration Target and Resource Update

The company's Exploration Target for the Barkly Project is estimated at 200–1,000 million tonnes at 1,600–1,900ppm TREO and 500–700ppm NdPr. As with all exploration targets, these are conceptual in nature and cannot be considered a mineral resource. The Exploration Target will be reviewed in conjunction with the Q4 CY2026 Mineral Resource update, which will incorporate assay data from the Phase 1 drilling program conducted to date.

Corporate and Tenure

Cash at 30 September 2026 was A$3.45 million after exploration expenditure of A$1.50 million in the quarter. A third Environmental Mining Licence was granted by the Northern Territory Department of Lands, Planning and Environment on 23 July 2026, complementing two licences granted in the prior quarter. The Annual General Meeting is scheduled for 27 November 2026. At the Buntine Project in the Northern Territory, rock-chip sampling was completed in July 2026 with assay results expected in Q4 CY2026.

Sector Context

The global rare earth market, particularly for magnet rare earth oxides such as neodymium, praseodymium, dysprosium and terbium, is a focus of strategic Supply chain interest for governments and industry across the Western world. The Barkly Project's high MREO ratio — consistently around one-third of TREO — is considered commercially attractive. Australian rare earth projects benefit from Western government interest in diversifying supply away from Chinese-dominated processing and production.

Risks

The key risks facing BAK include execution risk in completing the approximately 400-hole Phase 1 program within time and budget, particularly given the rig downtime experienced during the September quarter awaiting replacement parts. Cash reserves of A$3.45 million are tight and the company may need to raise additional Capital to sustain exploration through the remainder of the program. The metallurgical sighter result, while encouraging, requires significant further testwork to de-risk process economics. Regulatory and permitting timelines in the Northern Territory add further uncertainty.

What to Watch Next

The most significant near-term catalyst is the Q4 CY2026 Mineral Resource update, which will incorporate Phase 1 assay data and may substantially revise the current 40 million tonne Inferred Resource. The AGM on 27 November 2026 may provide additional strategic guidance. Buntine assay results and further Phase 1 intercepts as the drilling program progresses will provide ongoing news flow.