This is the most honest story on ionic clay rare earths that...

This is the most honest story on ionic clay rare earths that I’ve read all year.

A truely gutsy article by Reuben Adams of Stockh#@d. As Stockh#@d is a HC protected word you can Google the following to find the full article: Not all ionic clay rare earths deposits are created equal. Here’s why ASX investors need to read the fine print

Our MD Rick Pobjoy is quoted numerous times. And it’s brutally honest on a number of ASX listed stocks that have IMO pulled the wool over retail investors eyes. Especially, when you consider how easy it is to determine via a ‘humble $400 test’ whether you have an economic project or not. Bottom line is to always, Do Your Own Research (DYOR).

Here's the parts of the article that AR3 feature:

AR3 founder and boss Rick Pobjoy says this humble $400 test, via labs like ANSTO and ALS, was the very first thing the company did after discovering clay REEs at its flagship Koppamurra project in South Australia.

“Before we even pegged the ground two years ago, me and my co-founder had the materials tested at pH4 and pH1, at ambient temperatures and pressures to establish whether there were any rare earths coming into solution,” he told Stockh#@d.

“We didn’t want to waste any of our own money. That was a very cheap, very quick test to do. “And the frustration for us is that there are dozens of explorers who continue to drill, and drill, and release assay results who aren’t doing the simple test required to establish whether you can bring rare earths into solution at ambient temperatures and pressures. “Because if you can’t do that, economically you don’t have a project.”

Pobjoy says the testing indicates between 20-30% of REEs are in this adsorbed phase at Koppamurra.Including the secondary mineralised phase, 85% of mineralisation can be easily addressed at ambient temperatures and pressures.

So why aren’t ASX explorers doing the work?

Some explorers have done the testing, which Pobjoy says should be an absolute priority, before anything else.But not many.

“Before we (AR3) spent any more time or money after discovering Koppamurra, before we pegged the tenure, we had that test done,” he says.“Without that easy washing, leaching desorption characteristic it was nothing, just a curiosity.

“Since then, we have looked at several other potential projects. We got involved in one in WA but ruled it out after having some of the material diagnostic leached tested. “Nothing came out, so that was it. We drew a line through it.”

Pobjoy says retail investors should be looking for this metallurgical test work in an ASX explorer’s announcements. “It is not sufficient to have just the grade, or a good assemblage – like plenty of magnet and heavy rare earths in the mix,” he says. “It is not sufficient to have great thickness or low strip ratios, which are important as well.

“I do hope retail investors can understand the important component is leachability, because it will make or break a project. “You may have heard the saying ‘rare earths aren’t rare’ and that’s true, but what is rare is deposits that can be produced from economically.”

Bonus tip: Beware the Aqua Regia test

Some companies are quoting recoveries based on what they are calling ‘weak aqua regia’, Pobjoy says.

Aqua regia is a combination of three strong acids combined, he says. “They are quoting 80-90% recoveries, but weak aqua regia will dissolve just about everything, expect maybe monazite,” he says. “It is not a process you would apply to a producing mine; it’s a lab assay technique.

“I don’t know why they are pointing to those results. It’s got experts in the field shaking their heads ‘like honestly’.

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Big 2023 year coming up for AR3!

All IMO, DYOR, GLTA(patient)H