In the rapidly evolving landscape of decarbonisation technologies, rare earth elements (REEs) are emerging as essential catalysts for change with diverse applications across domestic, medical, industrial, and strategic sectors.
Most importantly, REEs are a fundamental ingredient in the large and demanding evolution to electrification. They enable the creation of magnets, motors, metal alloys, electronics, batteries, petroleum refining and much, much more.
REEs, comprising more than 15 metals, possess exceptional properties in magnetism, metallurgy, nuclear science, electricity and luminescence.
While numerous companies worldwide are searching for these critical metals, Australia stands as the fourth largest producer of rare earths globally holding 3.4 per cent of the world’s rare earth resources in the form of carbonatite-hosted deposits.
The small town of Esperance in Western Australia, well-known for its pristine beaches, has received significant attention following the discovery of widespread clay-hosted REE mineralisation in the region.
Among the first mover ASX-listed rare earth players is Mount Ridley Mines (ASX:MRD) with its eponymous 3400 square kilometre project located only 50 kilometres from the Port of Esperance.
The company has completed more than 50,000 metres of drilling and sighter metallurgy as it advances toward delineating a “globally significant critical rare earth resource capable of transforming supply chain security.”
MRD’s Chairman, Peter Christie commented that significant headway had already been made within 12 months of the company’s first REE drilling program.
“…the company has commenced resource drilling at the Mia and Marvin targets, a contiguous trend of mineralisation which is 30 kilometres long and 4 kilometres wide,” he said.
“These priority prospects were selected based on total REE grade, the ability to significantly improve the grade through simple beneficiation, clay type, depth of cover and proportion of high-value magnet rare earths.”
As the western world progressively transitions from coal and hydrocarbon-based energy sources to an electricity-driven economy, the range of uses and therefore demand for these metals, including neodymium, praseodymium, terbium, dysprosium and yttrium, is rapidly evolving.
Experienced leadership at Mount Ridley
As referenced by the Department of Industry, Science, and Resources, Australia’s mined REE production is forecast to grow by 9.1 per cent annually until 2030.
To lead the way, Mount Ridley has assembled a team of seasoned professionals, including consulting geologist David Crook, who has delved into the mining sector for more than 40 years.
A large portion of Mr Crook’s experience has taken place in Western Australia, where he’s worked on a range of commodities, including nickel, gold, lithium, and caesium, leading teams from exploration into discovery.
Mr Crook was Managing Director for 16 years at Pioneer Resources, now Essential Metals (ESS), which discovered the Mt Jewell gold, Sinclair caesium and the North Dome spodumene deposits. He recently retired as MD of lithium-focussed Charger Metals (CHR), transitioning to non-executive Director roles with CHR and Burley Minerals (BUR).
Additionally, the company secretary, Johnathon Busing, specialises in advising companies on compliance, mergers and acquisitions, and statutory accounting requirements.
The remaining Board members have a proven track record of navigating complex mining ventures, with deep insights into both Australia’s mining landscape and the REE sector.
An emerging REE province
In November 2020, MRD initiated a data review of its existing Mount Ridley project tenements and the surrounding area, which revealed clay-hosted REE mineralisation in the Biranup and Nornalup geological provinces.
This prompted the company to significantly increase its tenement holding, prompting a tenement pegging rush once other companies realised the potential of the district.
The southern Western Australian REE district is centred on the Port of Esperance which provides excellent complementary infrastructure. The clay-hosted REE deposit style has advantageous characteristics, despite being lower grade than the carbonatite deposits, including that they are softer, broad-scale, shallower, cheaper to mine and likely to be much less complex to treat.
These attractive conditions have reeled in a number of other focussed exploration companies, including OD6 Metals (OD6), Requisite Resources (unlisted), West Cobar Metals (WC1),Heavy Rare Earths (HRE) and Meeka Metals (MEK), evolving Esperance into an emerging REE district.
Globally, these deposits are predominantly mined in Southern China and Burma, where they serve as the world’s main source of heavy rare earth elements.
MRD’s strategic progress in 2023
In January, MRD commenced an air-core drilling program targeting 11 prospects, and by February, the company had already identified thick zones of total rare earth oxides (TREO) grading more than 1000 parts per million (ppm) in prospects within a 20-kilometre radius of the mine’s centre.
Drilling took place over the Mia, Butch, Tyrrells, Keiths, Marcellus, Winstons, Jules, and Vincent’s prospects, with some TREO grades surpassing 10,000 ppm.
In March, MRD’s drilling activities continued, with 409 air-core holes totalling 18,927 metres and 8497 samples submitted for REE analysis.
Notably, the Mia prospect revealed structurally controlled mineralisation within a three-kilometre-wide corridor over 16 kilometres. The prospect remains open for further testing and has become a focal point for the REE explorer, leading to the initiation of beneficiation testing to improve REE grades.
The beneficiation process removes barren minerals from mineralisation to achieve an improvement in grade and reduction in overall mass. MRD used 19 samples from 15 drill holes, which were proven to increase REE grades by more than 160 per cent.
In August, MRD achieved high REE extraction rates using a simple hydrochloric acid leach (HCl) process, resulting in up to 72 per cent TREO and including up to 85 per cent high-value magnet rare earth’s (MagREO) at its Mia and Vincent prospects.
“The weighted average drill-intersection grade at Mia now exceeds 1500ppm TREO,” MRD Chairman Peter Christie said.
“It is projected that this grade may increase to above 2400 ppm TREO through simple screen beneficiation, at a rate of upgrade of 160 per cent, and now excellent acid leach test results have been returned from beneficiated test samples. This shows the potential efficacy of HCl leaching to recover rare earth elements.”
Drilling is scheduled to resume at the Mia prospect this month.
Positioned for success
With the growing demand for REEs driven by new and advancing technologies as a critical path for the green energy transition, MRD’s focus on securing its REE position in the sector bodes well for long-term growth in this dynamic market.
According to the International Energy Agency’s annual Global EV Outlook, the global EV market is booming, with more than 10 million EVs sold in 2022.
This annualised demand is projected to grow by 35 per cent to 14 million this year. REEs will be essential for this growth in the race to become less dependent on the more harmful fossil fuels.
As Mount Ridley Mines continues its exploration and development efforts in the rare earth sector, its prime position in the WA hotspot region of Esperance secures its stake in the race to uncover these highly sought-after minerals.