Good analysis. Assume you’re a geo?I think most holders would...

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13/11/21

19:55

Post #: 57555404
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Originally posted by 2ic: ↑

Right geology and preserved laterite clay profile for ICD REE deposits... tick
Grade too low so far to make bank imo (only two samples over 250ppm TREO-Ce which is the low grade cut-off for IXR deposit)... cross

<45 micron fraction makes no economic sense for REE leaching with or without HPA process, two reasons:

HPA market is tiny, any project likely to be between 50-100 ktpa ore feed (FYI DFS plans on 60ktpa ore feed). 75,000t of still low grade CREO in <45micron HPA ore looks insufficient to justify the processing and REE extraction etc as meaningful by-product. IXR Makuutu deposit ramping up from 2.5Mtpa to 10Mtpa to achieve meaningful production. 75ktpa at 800ppm TREO, 24% NdPr at a generous 75% leach recovery rate (IXR = 55% CREO recovery) makes 14.4t of contained NdPr oxides in a mixed carbonate product (before mixed REE-carb production losses). At US$100,000/t NdPr oxide and generous 70% playability by-product revenue is US$1Mpa max. Less capex and opex to add REE as a by-product, try finding off-take for such a small annual supply, less marketing, sales, transport costs and you get my point...
For a material margin kicker the whole REE production process needs to be 100 times larger as <45micron by-product (even 3x larger is unrealistic volume of HPA) or 100 times lager as stand-alone 'side-by-side' REE leach project (similar to IXR etc). Such a project would unlikley afford to separate out 1/3 of the ore into <45micron for grade kicker required. Standard dig, simple crush and heap leach pad the lot might make sense at double the current 'bulk' grade. With very low Ca/Mg the ore should not consume much more chemicals as bulk vs <45micron, and higher REE recovered product should cover extra cost of large leach pads, more leach liquour ect.

Interesting project, I expect more ICD REE deposits will be found around the world now people are looking and assaying for them (laterite clays are abundant). ICD's need to be relatively shallow, low strip, and of sufficient grade to square the circle of capex, opex and margin at base case price assumptions. Then it's about REE basket components and all important metallurgy recoveries (ie high recovery from cheap, moderate pH leaching and low reagent consumption). Geology looks good, grades need to lift.... not just the odd hole but averaged over a decent size 'deposit' area.

AIMHO, DYOR, good luck

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Good analysis. Assume you’re a geo?

I think most holders would view the REE angle as clinging on to a hot trend to get some attention but I’m not taking it too seriously and I don’t think other holders are here for that.

Personally, I’m invested here for the kaolin and graphite projects both of which look very good vs the present market cap. If we can make something of the REE that’s a bonus.
ITM Price at posting: 29.0¢ Sentiment: None Disclosure: Held
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