American West Metals indicated there is 54 Moz of indium metal within the West Desert Utah resource making it one of the largest undeveloped indium resources in the world. Indium is present in unusually high levels within Zinc minerals at West Desert.
For reporting purposes, the 2023 annual report stated the company has elected to exclude the West Desert Indium resource estimate (54 Moz at 26g/t Indium or 1,534 tonnes of contained metal) because less than 35% of drill hole samples for the historical resource were assayed for indium. Hence, more assaying work is required to prove up and drastically grow the indium inventory.
Therefore, what is the 54 Moz Indium resource potentially worth?
The value of indium fluctuates depending on supply and demand, but it is generally a relatively expensive metal. Based on Indium metal prices of US$8 per ounce or AUD$12.5 per ounce, the contained metal value in the ground at West Desert is worth AUS$675 million (before mining-metallurgical recovery losses). The specific metallurgical recovery rate for indium from a particular orebody will depend on the factors such as the grade of the ore, the type of orebody, and the processing-refining method used. However, typical recovery rates range from 60% to 90%. Therefore, the value after processing-refining the Indium ore could be in the range of AUD$400 - 600 million for this resource (as a minimum, since only 35% of the historical drill core has been assayed).
Interesting facts about indium:
Indium is a soft, silvery-white metal that is very malleable and ductile.
It has a very low melting point, at 156.6 °C (313.9 °F) and its boiling point is 2000 °C (3,761.6 F).
When indium is exposed to temperatures higher than its melting point it bursts into violet-colored flames.
Indium has 35 known isotopes, 1 of which is stable and 2 occur in nature.
Indium is a relatively rare metal, but it is found in association with zinc, lead, and copper ores.
Indium is extracted from these minerals using a variety of processes, including smelting, electrolysis, and solvent extraction.
The name "indium" comes from the Latin word "indicum," meaning "indigo," because of the indigo blue line it produces in a spectroscope.
Indium is a non-toxic metal, and it is not corrosive.
Indium is one of the most transparent metals to visible light, and it is used in optical filters and coatings.
Indium is also used in liquid crystal displays (LCDs), flat-panel monitors, and televisions.
Indium is a good conductor of electricity and heat, and it is used in a variety of electronic applications, including semiconductors, solar cells, and thermoelectric devices.
Indium is also used in some medical applications, such as dental fillings and alloys for surgical implants.
Geology and Occurrence
Indium is a rare element and it represents only 0.1 parts per million in the Earth's crust. It is also the 69th most abundant element in the crust. Most of the world's indium comes from China and Canada but to a lesser extent, it can also be found in Siberia. Pure deposits of indium are exceptionally rare and the metal is more commonly found in ores that consists of a majority of zinc minerals, lead, iron and copper.
Production
Indium is a rare metal that is not mined directly. Instead, it is extracted as a byproduct of zinc and lead mining. The top producers of indium in 2022 were:China (65%)South Korea (17%)Japan (10%)Canada (5%)Peru (2%). Other countries that produce indium include Russia, the United States, and Mexico.
Indium is found in a variety of minerals, including sphalerite, galena, and chalcopyrite. However, it is present in very low concentrations, typically less than 1 part per million. This makes it difficult and expensive to extract indium directly from ore.Instead, indium is recovered from residues that are generated during the smelting of zinc and lead ores. These residues are treated with acid and other chemicals to dissolve the indium. The indium is then precipitated from the solution and refined to produce pure metal.
Market Trading
Due to indium's uncontested dominance in the use of LCD electronics and its wide applications in other fields, the metal remains vital to the global economy. It is sold by metal companies and on the Shanghai Metal Market (SMM).
Indium is a valuable metal because it has a variety of unique properties that make it useful in a wide range of applications. For example, its low melting point and good electrical conductivity make it ideal for use in semiconductors and other electronic devices. Its transparency to visible light makes it useful in optical filters and coatings. And its biocompatibility makes it useful in some medical applications.
The demand for indium is expected to continue to grow in the coming years, as Indium is considered a critical and strategic mineral because of its use in the aerospace, defense, energy and telecommunications sectors.
As noted on the AW1 website, "The US Department of the Interior has included indium as one of 35 mineral commodities considered critical to the economic and national security of the United States. Currently, the US is a 100% net importer of indium."
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