- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Further High Grade Results & Drilling Commenced at Mata da Corda
Equinox Resources Limited (ASX: EQN) (“Equinox Resources” or the “Company”) is pleased to announce RC drilling has commenced and additional high grade surface sample results have been received for its “Mata da Corda” Rare Earth Project, located in province of Patos de Minas, in Minas Gerais State, Brazil.
- Phase 1 RC drilling program has commenced at Mata da Corda REE Project and plans to test the depth of the clay profile across ultra-high grade clay surface sample areas up 10,110ppm TREO.
- Additional assay results from surface clay samples at Mata da Corda Rare Earths (REE) Project in Brazil confirms ongoing High Grade REE clays (Annex 1), including:
- 5,879 ppm TREO (sample EQ-MC-866)
- 5,212 ppm TREO (sample EQ-MC-867)
- 4,733 ppm TREO (sample EQ-MC-592)
- 4,067 ppm TREO (sample EQ-MC-699)
- 3,928 ppm TREO (sample EQ-MC-868)
- 3,690 ppm TREO (sample EQ-MC-856)
- Surface sample results have also revealed significant anomalies in Titanium dioxide, indicating promising potential for a secondary product (Annex 1), including:
- 20% TiO2 (sample EQ-MC-592)
- 19% TiO2 (sample EQ-MC-699)
- 18% TiO2 (sample EQ-MC-736)
- 17% TiO2 (sample EQ-MC-602)
- 17% TiO2 (sample EQ-MC-868)
- 16% TiO2 (sample EQ-MC-575)
- Sample results above were collected from the oxidized clay layer, which generally are weathered and hosts lower levels of mineralisation to what is indicatively directly beneath in the clay. The drilling will confirm the behavior of the grades at depth.
The first RC hole has commenced at tenement 833405/2023, as shown in Figure 2. This area has a concentrated cluster of surface sample results averaging approximately 2500 ppm TREO. This drill hole is situated about 1 kilometer north of the KP Fértil Mine operated by Harvest Minerals. The initial set of drill holes is anticipated to be completed by mid-August. Following this, the drilling program will proceed to target the higher surface sample target anomalies. Our field geologists have identified significant geological features that warrant further exploration.
Equinox Resources Managing Director, Zac Komur, commented:
"The additional surface sample results confirm that Mata da Corda has exceptional district-scale targets, with over half the samples exceeding 2000 ppm TREO across the 972 km² project area. We have partnered with a nimble and cost-effective RC drilling contractor who will mobilise the rig based on high-grade surface sample anomalies for our Phase 1 drilling campaign. Additionally, we are utilizing our own auger drill rigs to gain a comprehensive understanding of the clay profile and to map the clay horizon zoning, allowing us to penetrate the cerium anomalies observed on the surface. The same drilling contractor has also mobilised a drill rig to commence operations at the hard rock monazite sand project in Campo Grande."
Figure 1. Equinox Resources Mata da Corda Exploration Team commencing the first RC hole at Mata da Corda
Figure 2: Mata da Corda Total Rare Earth Oxides Surface Sample Results.
Investor and Media Contacts
Investor Inquiries:
Equinox Resources
Zac Komur, Managing Director
M: +61 467 775 792
E: zac.komur@eqnx.com.au
Media Inquiries:
Equinox Resources
Kelly-Jo Fry
M: +61 8 6109 6689
Authorised for release by the Board of Equinox Resources Limited.
COMPETENT PERSON STATEMENT
Sergio Luiz Martins Pereira, the in-country Exploration Manager for Equinox Resources Limited, compiled and evaluated the technical information in this release and is a member of the Australian Institute of Geoscientists (MAIG, 2019, #7341), accepted to report in accordance with ASX listing rules. Sergio Luiz Martins Pereira has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australian Code for Reporting of Regulation, Exploration Results, Mineral Resources, and Ore Reserves. Sergio Luiz Martins Pereira consents to including matters in the report based on information in the form and context in which it appears. The Company confirms that it is unaware of any new information or data that materially affects the information included in the market announcements referred to in this release and that all material assumptions and technical information referenced in the market announcement continue to apply and have not materially changed. All announcements referred to throughout can be found on the Company’s website – eqnx.com.au.
Click here for the full ASX Release
This article includes content from Equinox Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Lynas Boosts Mount Weld's Rare Earths Resource and Reserves
Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF) released an updated mineral resource and ore reserves estimate for its Western Australia-based Mount Weld rare earths deposit on Monday (August 5).
The update shows a significant increase in tonnage and contained total rare earth oxides (TREO) compared to the company's previous mineral resource and ore reserves estimate, which was released in 2018.
The improvement is the result of 84,000 metres of drilling completed since the earlier estimate was published. The new estimate shows an increase of 92 percent in the mineral resource and a 63 percent rise in ore reserves.
Mount Weld's mineral resource now stands at 106.6 million tonnes at 4.12 percent TREO, while ore reserves have increased to 32 million tonnes at 6.44 percent TREO, including a 92 percent lift in contained dysprosium oxide.
Dysprosium is a key ingredient in the rare earth permanent magnets used in high-tech electronics and electric vehicles.
“This updated statement provides a 20-year life of mine at 12,000 tonnes per annum NdPr finished product production capacity, providing confidence to our customers that we can meet their needs for responsibly produced rare earth materials today and tomorrow,” said Amanda Lacaze, managing director and CEO of Lynas.
China dominates the rare earths sector, and Lynas describes itself as the only significant producer of separated rare earth materials outside the Asian nation. It says Mount Weld is one of the world’s most valuable rare earths deposits.
During the quarter ended on June 30, the company produced 2,188 tonnes of TREO and 1,504 tonnes of NdPr. Those amounts were lower than both the previous period and the year-ago period due to maintenance at Lynas Malaysia.
Meanwhile, sales revenue came to AU$136.6 million and sales receipts were AU$117.5 million, numbers that Lynas said reflect a low average price for NdPr during the quarter. The company is carefully timing sales to manage volatility.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Rare Earths Stocks: 9 Biggest Companies in 2024
Rare earth elements (REEs) are crucial for technologies like smartphone cameras and defense systems.
A select few from the group of 17 are also vital to the expanding electric vehicle industry — neodymium and praseodymium are used in permanent magnet synchronous motors used in EV drive trains.
China's dominance in rare earth production and reserves has prompted countries like the US, Canada and Australia to boost their own mining and processing efforts to secure their supply chains. The pressure on these nations to establish strong supply chains is likely to grow when a US tariff on imports of Chinese rare earth magnets begins in 2026.
The 25 percent tariff, announced by the US government in May 2024, aims to both protect American industries from China's trade practices and support domestic production. One form of magnets the tariffs will affect is sintered neodymium-iron-boron (NdFeB) magnets, crucial for electric vehicle motors and wind turbines.
This marks the first time rare earth magnets are included in Section 301 tariffs, signaling a significant move in the US-China trade conflict. The initiative is part of broader efforts to bolster US energy and national security.
Meanwhile, the EU is also seeking to reduce its reliance on Chinese rare earths through a new law enacted in May, which aims to significantly boost domestic production of critical minerals, including rare earths, by 2030.
In early July, China's State Council introduced new regulations to tighten control over the country's rare earth resources and secure its supply chain. Taking effect on October 1, 2024, these new rules impose strict oversight on the mining, smelting and trading of rare earth elements. They also ban the export of technology for extracting and separating rare earths as well as for making rare earth magnets.
These recent escalations could be a boon to rare earth mineral and rare earth magnet stocks operating in the space outside of China. To help paint a better picture of the REE landscape, the Investing News Network has compiled a list of the biggest rare earths stocks by market cap on US, Canadian and Australian stock exchanges. Data was gathered on August 6, 2024, using TradingView’s stock screener.
US rare earths stocks
Ahead of the Chinese tariffs, the US is striving to secure a stable domestic supply of REEs outside China. The US has vast rare earths reserves and is the second largest global REE producer thanks to its sole operating mine, Mountain Pass. However, it currently lacks sufficient processing facilities. American rare earth companies are working to address this imbalance, presenting investment opportunities for those looking to capitalize on the market's growth potential.
Learn more about MP Materials, Energy Fuels and NioCorp Developments, the three largest US rare earths stocks by market cap, below.
1. MP Materials (NYSE:MP)
Market Cap: US$1.81 billion; share price: US$10.96
MP Materials, the largest producer of rare earths outside China, focuses on high-purity separated neodymium and praseodymium (NdPr) oxide, heavy rare earths concentrate, lanthanum, and cerium oxides and carbonates.
The company went public in mid-2020 after acquiring the Mountain Pass mine in California, the only operational US-based rare earths mine and processing facility. In Q3 2023, MP Materials began producing separated NdPr, marking a significant milestone. The company plans to increase rare earth oxide production by 50 percent within four years.
In April, MP Materials was awarded US$58.5 million to support the construction of the first fully integrated rare earth magnet manufacturing facility in the US. This funding, part of the Section 48C Advanced Energy Project tax credit, was granted by the IRS and Treasury following a selection process that evaluated around 250 projects based on their technical and commercial viability, as well as their environmental and community impact.
Located in Fort Worth, Texas, the facility will produce the NdFeB magnets crucial for EVs, wind turbines and defense systems. The company is targeting commercial production by late 2025. MP Materials will source raw materials from its Mountain Pass mine, creating an end-to-end supply chain with integrated recycling.
2. Energy Fuels (NYSEAMERICAN:UUUU,TSX:EFR)
Market cap: US$764.25 million; share price: US$4.67
Energy Fuels is a leading US uranium and rare earths company that operates key uranium production centers including the White Mesa mill in Utah and the Nichols Ranch and Alta Mesa projects in Wyoming and Texas.
The company finished the construction of Phase 1 REE separation infrastructure at White Mesa in early 2024, and in June it reported the successful commercial production of separated neodymium-praseodymium that meets the specifications required for REE-based alloy manufacturing.
According to the company, it believes it is the first US company in decades to achieve commercial-scale, on-spec rare earths separation from monazite. The Phase 1 REE separation circuit was completed under budget and is now operating at full capacity. Energy Fuels anticipates commercial production of 850 to 1,000 metric tons of NdPr per year, making it one of the largest outside China.
Additionally, the mill will produce a heavy REE concentrate for pilot-scale tests to potentially develop commercial dysprosium and terbium separation facilities in the future.
Energy Fuels has also made moves to secure sources of monazite sand to process at its White Mesa mill. In 2023, the company acquired the Bahia project in Brazil to potentially supply 3,000 to 10,000 MT of REE-bearing monazite sand annually.
Additionally, in early June 2024, Energy Fuels executed a joint venture with Astron (ASX:ATR) for Astron's Donald rare earth and mineral sands project in Victoria, Australia, of which Energy Fuels now has the option to earn 49 percent. Donald is expected to begin production as early as 2026 and supply the White Mesa mill with 7,000 to 8,000 tonnes of monazite sand in rare earth concentrate annually in Phase 1, with plans to expand output in subsequent phases.
3. NioCorp Developments (NASDAQ:NB)
Market cap: US$67.82 million; share price: US$1.81
NioCorp Developments is advancing its Elk Creek project in Nebraska, a leading critical minerals venture featuring North America's highest-grade niobium deposit under development, with significant scandium production capacity. An updated 2022 feasibility study highlighted extended mine life, improved ore grades and enhanced economics for niobium, scandium and titanium.
Recent metallurgical testing has demonstrated the ability to produce high-purity magnetic rare earth oxides at a recovery rate of 92 percent or higher. These results will inform an updated feasibility study, expected in 2024, incorporating rare earth elements into the project’s mineral reserves.
In April the company delisted from the TSX due to significantly lower trading volumes than its NASDAQ listing.
A day later NioCorp announced plans to explore the feasibility of integrating the recycling of permanent rare earth magnets into its proposed Elk Creek Critical Minerals Project in southeast Nebraska. An assessment will be undertaken to better understand the technical and commercial viability of recycling post-consumer neodymium-iron-boron (NdFeB) magnets back into separated rare earth oxides, which can then be utilized in the production of new NdFeB magnets.
The initial phase of this investigation will involve bench-scale testing, with potential progression to demonstration-scale testing based on results. Notably, this initiative will be conducted independently of NioCorp's ongoing efforts to update its Elk Creek project feasibility study.
In May, the company shared the results of a scoping study focused on using a Railveyor system to electrify the Elk Creek mine, which the study found could cut costs, shorten the timeline to full commercial production and lower the mine's carbon footprint. The system would deliver ore to processing facilities using a narrow-gauge light rail system.
Canadian rare earths stocks
As part of Canada's Critical Minerals Strategy, the government has allocated C$3.8 billion in federal funding for opportunities across the critical minerals entire value chain, from exploration to recycling. Rare earth elements are among the minerals listed as critical. Additionally, the government has designated C$7.5 million in funding to support the establishment of a rare earth element processing facility in Saskatchewan.
Learn more about Aclara Resources, Ucore Rare Metals and Mkango Resources, the three largest Canada-listed rare earths stocks focused stocks by market cap.
1. Aclara Resources (TSX:ARA)
Market cap: C$83.2 million; share price: C$0.48
Aclara Resources is advancing its Penco Module project in Chile, characterized by ionic clays abundant in heavy rare earths. Their objective is to generate rare earths concentrate utilizing an environmentally friendly extraction process. This approach aims to eliminate the need for a tailings facility, minimize water consumption and ensure the absence of radioactivity in the final product.
Additionally, the company discovered its Carina Module project in 2023, and in December disclosed an initial inferred resource for the project, encompassing approximately 168 million MT with a grade of 1,510 parts per million total rare earth oxides and 477 parts per million desorbable rare earth oxides.
Aclara successfully concluded its semi-industrial pilot plant program for the Penco Module in September 2023, yielding 107 kilograms of wet high-purity heavy rare earth concentrate from 120 MT of ionic clays. Full-scale production at the Penco Module is slated to commence in the second quarter of 2027.
On March 1, Aclara received its second patent for an innovative process to extract heavy rare earths from ionic clays in an environmentally friendly manner. The patent, granted in Chile and valid for 20 years, focuses on the circular mineral harvesting process and establishes a fully enclosed flowsheet. The company submitted a new environmental impact assessment for its Penco Module project in June that features an improved design addressing environmental and social concerns.
Aclara and Vacuumschmelze, also known as VAC, penned a memorandum of understanding in early July to jointly pursue a "mine-to-magnets" solution for ESG-compliant permanent magnets. The non-binding agreement aims to meet the rising demand for electric vehicles and clean technologies, addressing the limited and Asia-centric supply of rare earth minerals. The partnership seeks to develop a resilient, ESG-focused supply chain for these critical components.
2. Ucore Rare Metals (TSXV:UCU)
Market cap: C$42.65 million; share price: C$0.66
Ucore Rare Metals is focused on the exploration and separation of rare earth elements in Canada and the US. The company owns the Bokan-Dotson Ridge rare earths project in Alaska and is developing a strategic metals complex for processing heavy and light rare earths in Louisiana. Ucore acquired an 80,800-square-foot brownfield facility in Alexandria, Louisiana, for developing its first commercial REE processing facility in January.
In Canada, Ucore's Ontario-based RapidSX demonstration plant, operated by Kingston Process Metallurgy, was commissioned to evaluate the techno-economic advantages, scalability and commercial viability of the RapidSX technology platform for separating and producing REEs like praseodymium, neodymium, terbium and dysprosium. This initiative was supported by a US$4 million award from the US Department of Defense, granted to Ucore's subsidiary, Innovation Metals, to demonstrate the capabilities of the plant.
In late April, Ucore reported that it tested a mixed rare earth carbonate from Defense Metals' Wicheeda project and confirmed it was suitable for commercial-scale processing at Ucore's planned facilities. According to the release, "(Wicheeda) is a source of material that can become a fundamental economic and technical component to Ucore’s plan of developing multiple SMC’s across North America."
On July 9, Ucore announced the execution of a non-binding memorandum of understanding with Cyclic Materials that aims to to qualify Cyclic's recycled rare earth oxide product in Ucore's process. This will start with the use of initial trial quantities of Cyclic's supply to support Ucore's rare earth demonstration program at its RapidSX facility. Additionally, the agreement positions Cyclic Materials as a potential long-term source for Ucore's planned facilities in the US and Canada.
3. Mkango Resources (TSXV:MKA)
Market cap: C$34.32 million; share price: C$0.13
Mkango is positioning itself to be a leader in the production of recycled rare earth magnets, alloys and oxides via its 79.4 percent stake in Maginito with partner CoTec Holdings. Mkango also has mineral assets, including the advanced Songwe Hill rare earths project in Malawi.
Magnito owns HyProMag, a firm focusing on rare earth magnet recycling at the Tyseley Energy Park in Birmingham, UK. A pilot plant using a long-loop recycling process was just commissioned in July, and commercial operations are anticipated to start in Q1 2025. Additionally, Maginito is expanding HyProMag’s recycling technology to the US through the joint venture HyProMag USA, with a feasibility study underway.
In early June, Mkango announced that HyProMag has entered a non-binding memorandum of understanding with Envipro Holdings, a Japanese recycling and materials trading company, to develop rare earth magnet recycling initiatives in Japan and the UK, including marketing and potentially development of its HyProMag technology in Japan, as well as scrap recycling trials in both countries.
Mkango’s mineral assets include the previously mentioned advanced Songwe Hill rare earths project in Malawi, which is targeting neodymium, praseodymium, dysprosium and terbium, and its Pulawy rare earths separation project in Poland. It also holds a diverse exploration portfolio in Malawi that host resources such as rare earths, uranium, tantalum and niobium.
At the end of July, Mkango's wholly owned subsidiaries and the government of Malawi signed a mining development agreement for the Songwe rare earth project confirming the fiscal terms for its development, including a 10 percent interest to Malawi's government and exemption from custom and excise duties imports and exports.
"We are not just signing an agreement; we are embarking on a journey towards a brighter, more prosperous future for Malawi," Malawi's Minister of Mining Monica Chang’anamuno said in the release.
Australian rare earths stocks
Australia ranks among the globe's top rare earths producers and possesses the fifth largest reserves of these minerals. The nation is notable for hosting the largest supplier of rare earths outside of China, which also holds the highest market capitalization among Australian rare earths companies.
1. Lynas Rare Earths (ASX:LYC)
Market cap: AU$5.52 billion; current share price: AU$5.83
Lynas Rare Earths is the leading separated rare earths producer outside of China, with operations in Australia, Malaysia and the US. In Western Australia, Lynas operates the Mount Weld mine and concentrator and is ramping up processing at its Kalgoorlie rare earth processing facility.
In mid-2023, Lynas received AU$20 million from the Australian government's Modern Manufacturing Initiative. This funding supports the Apatite leach circuit project at Lynas’ Kalgoorlie facility. The company marked a pivotal moment in December when the Kalgoorlie facility achieved its first production milestone, signaling the transition from commissioning to full-scale operation.
Additionally, Lynas is working to establish a light rare earths processing facility and a heavy rare earths separation facility in Texas, US. These initiatives not only bolster Lynas's position but also strengthen the rare earths industry in both Australia and the US.
The company processes mined material at its separation facility in Malaysia. In the March 2024 quarter, Lynas reported strong production rates, including 1,724 metric tons of NdPr, following successful ramp-up efforts in Malaysia. Despite a challenging market with low NdPr prices averaging US$47 per kilogram, quarterly sales revenue reached AU$101.2 million.
In late June, Lynas announced plans to begin production of separated dysprosium and terbium products at its Malaysian operations in the 2025 calendar year.
In August, Lynas reported a 92 percent increase in mineral resources and a 63 percent rise in ore reserves at its Mount Weld site. Mineral resources have expanded from 55.4 million to 106.6 million MT at 4.12 percent total rare earth oxides, while ore reserves have grown from 19.7 million to 32 million MT at 6.44 percent.
The new estimates include significant increases in contained heavy rare earth elements and support a mine life of over 20 years at expanded production rates. Additionally, stored tailings were added to the ore reserves as the operations have the ability to reprocess them to recover additional rare earth minerals.
2. Iluka Resources (ASX:ILU)
Market cap: AU$2.35 billion; current share price: AU$5.42
Iluka Resources is advancing its Eneabba rare earths refinery in Western Australia with significant backing from the Australian government, which aims to bolster the country’s footprint in the global rare earths market by tapping into its abundant reserves. The company also owns zircon operations in Australia, including Jacinth-Ambrosia, the world's largest zircon mine.
Iluka secured an AU$1.25 billion non-recourse loan for Eneabba under the AU$2 billion Critical Minerals Facility administered by Export Finance Australia. This funding will support the development of a fully integrated refinery capable of producing both light and heavy separated rare earth oxides. The facility will process material from Iluka’s own feedstocks and third-party suppliers, with initial production expected to commence by 2025.
Additionally, Iluka is progressing its Wimmera project in Victoria, focusing on mining and beneficiation of fine-grained heavy mineral sands in the Murray Basin. This project aims to supply zircon and rare earths over the long term. A definitive feasibility study for Wimmera is scheduled for completion by the end of 2025.
In the company’s Q2 quarterly results, Iluka noted that Q2 activity at Eneabba included the "progression of major engineering packages, conclusion of camp accommodation works and preparation for commencing the next phase of site works."
3. Arafura Resources (ASX:ARU)
Market cap: AU$371.85 million; current share price: AU$0.16
Arafura Resources, an Australian rare earths firm, has secured government funding to advance its Nolans rare earths project in the Northern Territory. Arafura is currently working towards a final investment decision for Nolans, which is shovel ready.
Nolans is envisioned as a vertically integrated operation with on-site processing facilities. A 2022 mine report updates Nolans' expected lifespan to 38 years, targeting an annual production capacity of 4,440 MT of NdPr concentrate. The project's definitive feasibility study highlights significant concentrations of neodymium and praseodymium, alongside all other rare earths in varying quantities.
Arafura has inked a binding offtake agreements with Hyundai Motors (KRX:005380), Kia (KRX:000270), and Siemens Gamesa Renewable Energy. Additionally, the company has a non-binding memorandum of understanding with General Electric Company's (NASDAQ:GE) GE Renewable Energy to collaborate on establishing sustainable rare earths supply chains.
In the most recent quarterly update Arafura noted that it had secured conditional approval for over US$1 billion in debt funding for the Nolans project. With safety preparations underway, Arafura is nearing a final investment decision and is set to begin construction once financing is finalized.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels and Aclara Resources are clients of the Investing News Network. This article is not paid-for content.
St. George Acquires Brazil-based Araxa Niobium-Rare Earths Project
St. George Mining (ASX:SGQ) revealed plans to acquire the Araxa niobium-rare earths project in Brazil by entering into a binding conditional agreement to purchase a subsidiary of Itafos (TSXV:IFOS,OTC Pink:MBCF).
Under the agreement, which was announced on Tuesday (August 6), St. George will pay Itafos US$10 million in cash once the transaction closes and will issue Itafos ordinary shares representing a 10 percent stake.
This will be followed by deferred cash payments to Itafos of US$6 million nine months after closing, and US$5 million 18 months after closing. St. George will also issue various options to Itafos as part of the deal.
"Extensive high-grade niobium mineralisation has already been discovered at the project,” said John Prineas, executive chairman at St. George. Historical drilling has defined more than 500 intercepts of niobium grades above 1 percent, “providing a strong foundation for St George to quickly progress to potential resource definition.”
High-grade rare earths and phosphate mineralisation has also been confirmed by drilling over a widespread area.
According to St. George, Araxa's strength is in its location, a strong mining jurisdiction with potential access to infrastructure and labour. It sits adjacent to CBMM’s flagship niobium mine, which produces about 80 percent of the world’s niobium. A phosphate mine owned by Mosaic (NYSE:MOS) is situated to the southwest of Araxa.
Available within the property or in close proximity are sealed roads to the project and major destinations, as well as grid power, water and telecommunications. Accommodations and offices are available in the town of Araxa, while a skilled workforce is available locally from Araxa or from Belo Horizonte.
Records show historical exploration at the Araxa site has occurred since 1965. The last exploration ranged from 2011 to 2012, when Itafos completed preliminary metallurgical testwork and resource estimates.
St. George has received firm commitments for a capital raising amounting to AU$21.25 million. This will be done via the issue of 850 million ordinary shares of the company to institutional investors at an issue price of AU$0.025 each.
The funds will be used for St. George’s inaugural drill program at Araxa and for working capital, including costs related to the acquisition. The transaction is expected to close between September and early October, subject to the completion of certain conditions by November 3.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Thick Dy & Tb REE results in NW Block of Deep Leads
37-hole drilling campaign has expanded resource outline northwest of the Deep Leads high-grade rare earth element resource zone. Thicker mineralisation encountered and grades continue to be enriched in Dy+Tb
ABx Group (ASX: ABX) (“ABx” or “the Company”) has received 316 assays from 37 holes that were the first drilled into the untested NW Block of its Deep Leads rare earth elements (REE) project, located 45 km west of Launceston, Tasmania. Several intercepts were considerably thicker than usual and extend ABx’s REE mineralisation across the plateau.
High Dy+Tb enrichment: ABx’s rare earth strategy is to produce a mixed rare earth carbonate (MREC) that is enriched in dysprosium (Dy) and terbium (Tb), the two heavy rare earths with the highest supply risk. The Dy+Tb exceeds 4.3% of Deep Leads’ total rare earth oxides (TREO), which is the highest proportion of Dy and Tb of any clay-hosted rare earth resource in Australia and high by world standards. Thick zones of high-grade ionic adsorption clay rare earths with such a high proportion of Dy+Tb are extremely rare.
Favourable ore geometry: ABx’s rare earths layer is typically 4 to 7 metres thick beneath 2 to 5 metres of clay and soil, which is ideal for restoring any mined areas to productive, fertile land (see Table 1 and Figure 2).
ABx Group Managing Director and CEO, Mark Cooksey said: “Drill results in the NW Block expand the resource outline for the Deep Leads high-grade rare earth zone and also enhance the areal extent from hole DL520. DL520 is one of the nearest existing drill holes and is also where rare earth extractions of over 50% were measured using low-acid (pH 4) conditions – confirmed in desorption tests by the Australian Nuclear Science and Technology Organisation (ANSTO) and in- house tests.”
Table 1: thick rare earth intercepts in NW Block enriched in Dy+Tb. Locations in Figure 2. Results of all holes are in Table 3
TREO is total rare earth oxides & Y2O3 (15 oxides in total). TREO-CeO2 = TREO minus ppm CeO2. High Dy+Tb intercepts.
Click here for the full ASX Release
This article includes content from ABX Group Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
St George to Acquire Advanced High-Grade Araxa Niobium Project in World’s Leading Niobium Producing Address
Acquisition propels St George onto global niobium stage
St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) is pleased to announce that it has entered into a binding conditional agreement to acquire all the issued capital of Itafos Araxá Mineracao E Fertilizantes S.A (“Itafos Araxá”) which owns 100% of the advanced niobium-REE Araxá Project in Minas Gerais, Brazil (“Araxá” or “the Project”). The closing of the transaction is subject to the completion (or waiver) of certain conditions by November 3, 2024.
Highlights
- Binding Agreement: St George has entered into a binding conditional agreement to acquire 100% of the Araxá niobium-REE Project in Minas Gerais, Brazil (the “Project”)
- World class location: The Project is immediately adjacent to, and within the same carbonatite complex as, the niobium mine of CBMM that produces approximately 80% of the world’s niobium
- High-grade mineralisation: Historical drilling at the Project has defined extensive high- grade niobium, REE and phosphate mineralisation with:
- More than 500 intercepts of high-grade niobium, >1% Nb2O5
- Ultra-high grades up to 8% Nb2O5, 33% TREO and 32% P2O5
- Mineralisation commencing from surface and open in all directions
- Strong foundation to deliver resource: Outstanding opportunity for St George to define a globally significant niobium-REE resource
- Enviable development potential: Located in an established mining district with existing infrastructure (roads and power), proven route to market and access to workforce
- Capital raising locked-in: St George has received firm commitments from investors to raise new funds of $21.25 million for application towards acquisition costs, exploration expenses and working capital
Drilling by previous explorers at the Project has confirmed significant niobium and rare earths element (REE) mineralisation – see Tables 1, 2 and 3.
Table 1: Historical high-grade niobium drill intercepts at Araxá include (cut-off grade of 1% Nb2O5)1:
The intercepts in Tables 1 and 2 have been selected to demonstrate, respectively, the outstanding prospectivity for near-surface high-grade niobium and TREO mineralisation at the Project. For a full list of significant historical drill results, see Table 3 at the end of this ASX Release.
The historical drill results use categories of mineralisation consistent with those defined in the 2012 JORC Code. These results confirm the presence of high-grade niobium and REE mineralisation, providing St George with a strong platform to expand the mineralised footprint at the Project with further drilling.
Click here for the full ASX Release
This article includes content from St George Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Rare Earths Market Update: H1 2024 in Review
The rare earths market was punctuated by significant fluctuations during the first half of 2024.
Global supply continued to struggle to meet rising demand, particularly outside of China. Early stage projects in countries like the US, Korea and India are showing promise, but have so far been insufficient to close the growing supply gap.
Conversely, while rare earths demand across key end-use segments — electric vehicles (EVs) and renewable energy technologies — started the year strong, some demand eroded during Q2, which was reflected in lower prices.
Geopolitical tensions also intensified toward the end of the quarter, and are likely to impact the market through H2.
China driving global rare earths supply with rising quotas
Global rare earths supply has been increasing annually since 2020, when total production topped 240,000 metric tons (MT). In 2023, global mine supply grew to 350,000 MT, with the majority of this fresh supply coming out of China.
In 2020, the Asian nation produced 140,000 MT of rare earths, with output ballooning to 240,000 MT in 2023.
“China’s Ministry of Industry and Information Technology raised 2023 quotas for rare-earth mining and separation to 240,000 tons and 230,000 tons of REO equivalent, respectively,” as per the US Geological Survey. “In 2023, mine production quotas were allocated to 220,850 tons of light rare earths and 19,150 tons of ion-adsorption clays.”
China accounts for 68.57 percent of all mined supply, and is likely to add to that number this year.
In February, the country issued its first round of 2024 quotas.
“A rare earth mining quota of 135,000 tonnes and a smelting and separation quota of 127,000 tonnes were unveiled for the first round of 2024, up by 12.50 percent from 120,000 and 10.43 percent from 115,000 tonnes respectively from 2023’s first round quotas,” a Fastmarkets report published that month states.
The quotas were targeted at China’s two major rare earths companies. “China North Rare Earth Corp has been allocated a mining quota for light rare earth of 94,580 tonnes and a smelting quota of 88,010 tonnes, China Rare Earth Group received a total mining quota of 40,420 tonnes including 30,280 tonnes for light rare earth, and 10,140 for ion-absorbed rare earth (medium and heavy rare earth), and a total smelting quota of 38,990 tonnes,” Fastmarkets explains.
In terms of top-producing mines, China’s Bayan Obo mines in Inner Mongolia make up the majority of market supply, followed by Mount Weld in Australia and Mountain Pass in the US.
According to the International Energy Agency (IEA), since 2015, Myanmar's share of global rare earths production has surged from 0.2 percent to 14 percent, and the US has increased its share from 1 percent to 9 percent.
Looking ahead to 2030, China is expected to remain the top producer of magnet rare earths, while Australia's share of global production is projected to rise to 18 percent, and the US is anticipated to maintain a 7 percent share.
As noted in the IEA’s Global Critical Minerals Outlook, the primary issue for the rare earths sector is supply concentration.
“The major concern for magnet rare earths is not a huge gap between demand and supply like in the case of copper or lithium, but rather an extremely important level of geographical concentration of today’s as well as future mining and refining projects that expose this market significantly to supply disruptions,” it reads.
Geopolitical tensions impacting rare earths supply and trade policies
Such rare earths supply disruptions could come from China implementing export bans similar to those issued in 2019, when the US and China engaged in a tit-for-tat trade war.
Limited rare earths exports from China were also the catalyst behind Australia-listed Lynas (ASX:LYC,OTC Pink:LYSCF), which was born when China limited rare earths exports to Japan in the early 2000s.
Now Lynas controls 15 percent of the rare earths market and is planning on expanding its presence in the space.
Currently Lynas operates the Mount Weld rare earths mine in Western Australia, and is a major global producer of neodymium-praseodymium (NdPr) oxide, a key material for neodymium iron boron (NdFeB) magnets.
In late June, Lynas announced plans to begin producing separated heavy rare earths products at its Kuantan refinery in Malaysia, with commissioning and ramp-up expected by mid-2025. The facility will have an estimated annual throughput of 1,500 MT of a mixed heavy rare earths compound, which includes samarium, europium, gadolinium and holmium. Initial estimates for dysprosium and terbium production capacity haven't been provided.
“This circuit reconfiguration at Lynas Malaysia provides a pathway to accelerate our commitment to processing all of the elements in the Mt Weld ore body,” said Amanda Lacaze, CEO and managing director of Lynas.
In an effort to increase domestic supply, the US government has announced plans to implement a 25 percent tariff on rare earth magnet imports from China. “The tariff rate on natural graphite and permanent magnets will increase from zero to 25 percent in 2026. The tariff rate for certain other critical minerals will increase from zero to 25 percent in 2024,” as per a May statement from the White House. “Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk.”
The announcement was welcome news to MP Materials (NYSE:MP), which owns and operates Mountain Pass in California, “America’s only scaled and operational rare earth mine and separations facility.”
Jim Litinsky, chief executive of MP Materials, told Fastmarkets in mid-May that the new tariffs will "help to level the playing field for domestic producers," giving the US market time to scale and develop.
Prior to the Biden administration's decision, MP Materials was awarded US$58.5 million by the US Department of Energy “to advance its construction of America’s first fully-integrated rare earth magnet manufacturing facility.”
Similarly, E-Vac, the US subsidiary of German magnet manufacturer VAC Group, was given US$111.9 million in US tax credits to advance the construction of its first US rare earth magnet manufacturing facility in Sumter, South Carolina.
The funding will facilitate the construction of a sintered NdFeB rare earth magnet plant in an American city. It is expected to be operational by late fall 2025.
The project, which began in March, is supported by the US Qualifying Advanced Energy Project Tax Credit (48C) under the Inflation Reduction Act). In its first phase, this initiative allocated US$10 billion in funding, with US$800 million in tax credits, to select projects focused on critical materials recycling, processing and refining.
Rare earths prices hurting as demand slumps
Along with oversupply, 2024 has brought weaker rare earths demand in key end-use segments, like the EV sector, due to lower consumer buying. In turn, that has caused prices to trend lower.
In an April article, Caroline Messecar, Fastmarkets' strategic markets editor for technology metals, points to several factors that she thinks have helped push rare earths prices down close to 70 percent in two years.
She identifies weak EV demand, a global economic downturn, previous volatility and geopolitics as culprits.
Looking ahead, the rare earths market outside of China could face supply disruptions as the Asian nation announced new regulations to protect rare earths supply for national security in early July.
These rules, covering the mining, smelting and trade of these crucial materials, emphasize that rare earth resources belong to the state. The government will oversee the development of China's rare earths industry, where the country has become the leading producer, accounting for nearly 90 percent of global refined output.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Latest News
Latest Press Releases
Related News
TOP STOCKS
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.