1. The Zircon is planned to be mined and separated during the dry plant process. (See AGM presentation point 3 under the heading “Expected Process Stages”. I wish the management would put page numbers on their power points)
The Zircon is in a Eudialyte mineral which would require physical beneficiation and then solvent extraction. An expensive and technically challenging exercise. The company does not explicitly provide a grade for the zircon, but it appears to be around 0.05%, and not mineable or processable at these grades.
Size of Resource
2. I would draw your attention to the fact that the tonnage presented is for < 5% of the area of the alluvium fan.
The size of the resource or relative potential to the overall area is irrelevant. It is the distribution % of the REEs and overall mineral content relative to total ore. Even if their resource went to 5 billion tonnes, the throughput per kg of output doesn't change.
Wet Processing to Produce HMC 3. The alluvium is dry mined and taken to mobile washing plants. The results from this process is for every 40 to 66 tonnes of alluvium one tonne of HMC is created. All the alluvium tailings returned to the excavation sites. (AGM Presentation ‘Mining and Stage 2 (wet HMC) processing concept’)
The mining and processing stages of ore basically break down into for every tonne of REE concentrate produced, ~7500t of ore must be processed. The ratio of 1:40 or 1:66 is wrong. The basic formula is:
Ore x head grade x REO mineral % x recovery
4. The HMC at this point has a concentration of 6.25% TREO. In the AGM they suggest this to be achieve at sand mining costs, which I believe to be about $2/ tonne of alluvium. So assuming a high estimate, say about $150 to achieve a tonne of HMC.
Mining costs are not shown by CUX and they have not done a scoping study. Costs will need to be broken down into extraction, milling, concentration, transport.
It should also be noted that Xenotime and Monazite while relatively similar in processing methods, a slightly different flow sheet and plant configuration will be needed for each. So it is almost impossible to build a plant that will have both minerals fed into it simultaneously.
5. The HMC figure takes into account the recovery rate to this point.
7. The proposed dry plant processing by magnetic and electrostatic processing which will separate the monazite and xenotime then creates a new concentrate with >35% TREO and the company is targeting 50% TREO. (AGM Presentation under heading ‘Dry Plant Processing’)
The current concentrate grade is 6.5%. Irrespective of they think they can achieve (35%) or targeting (50%), improving the grade by a minimum factor of 6x is almost impossible. This is due to head grade being very low and even if there were scope to increase the grade to 30%+, how much chemical reagants and energy would be needed to achieve this? It would likely render the economics of the project as unworkable. REE processing is not just about the ability to technically produce concentrate, it is about doing it within commercial parameters.
8. Assuming a 100% recovery of mozinite and xenotime will mean for every tonne of this dry plant recovered concentrate 5.6 tonnes 8 tonnes of HMC will need to be dry processed. 9. At 70% recovery 10. The dry processed concentrate will have between 350 and 500 kgs of TREO.
Refer to my original analysis: 20m tonnes = 2640t of saleable REE minerals
11. About half of the HMC processed will be zircon, or about half the total HMC processed or say 6 tonnes. (I think!) 12. Assuming a cost of $25 for the creation of this dry processed tonne by this magnetic and electrostatic processing to this stage the cost of the dry processed concentrate is about $250/tonne or 25 cents/kg.
13. Assuming a value of the TREO at $50/kg the TREO in the dry processed concentrate will have a value of between $17,500 and $25,000.
At a very basic level, the $50/kg of TREO reflect FOB prices for 99% pure separated oxides.
A carbonate product is generally worth between 40-60% of the separated oxide price. A concentrate price is worth between 40-60% of the concentrate price.
So the actual value per kg of TREO is not $50, it is between $8 and $18. Possibly more or less depending on grade, distribution, deleterious elements, demand and supply. On deleterious elements, the thorium and uranium also need to be considered and if the levels are too high, the product may be un-saleable or attract massive discounts in pricing.
It must also be noted that not every REE element can be extracted and processed. Every REE mineral virtually contains all 17 elements, to differing extents. Most processes cannot process more than 5/6 elements. Recovery rates also differ across each element.
For the Monazite, La, Ce, Pr and Nd could be extracted.
For Xenotime, Dy, Gd, Tb, Er and Y are only like to be extracted
Extraction of Saleable Product
14. I’ll quote the AGM presentation:
(c) Extraction of initial saleable product: production of a range of oxides / hydroxides on-site in a small low-cap site plant (because of high grades) using proven technology on ideal mineral feed-stocks in a regime similar to with nuclear materials, which are by-products of this processing. It seems extracting and processing CUX’s Charlie Creek resources will be very profitable. (AGM under heading: Crossland's development concept for Charlie Creek Alluvium deposits.)
High Grades. I know they said they have high grades but look at the facts. The head grade is 0.02%. Refer to your own analysis of other deposits above, the lowest grade is dubbo 0.9%. Thats 45x greater than CUX.
Concentrade grade is 6.5%. A minimum of 30% is needed.
CUX Price at posting:
5.6¢ Sentiment: None Disclosure: Not Held
(20min delay)