The Conversation (0)
July 14, 2024
Pearl Gull is pleased to advise that it has entered into a binding term sheet to acquire 100% of the fully paid ordinary shares in Huemul which in turn has signed an agreement and is negotiating a further agreement for it to have a right to earn up to 80% of the equity in a privately held Chilean-company, NeoRe SpA (NeoRe).
Highlights:
- Pearl Gull Iron Limited (ASX: PLG) (Pearl Gull, PLG or the Company) has entered into a binding agreement to acquire Huemul Holdings Pty Ltd (ACN 665 254 491) (Huemul) (the Acquisition). Huemul has signed an agreement and is negotiating a further agreement to have the right to earn up to an 80% interest in NeoRe SpA.
- NeoRe SpA is a Chilean company that holds tenements and tenement applications in Chile that are highly prospective for Ionic Adsorption Clay (IAC) Rare Earth Elements (REEs) – the La Marigen Project
- The La Marigen Project consists of 5 tenement/tenement application areas covering a combined area of ~22,800ha along the coastal belt of Chile, an emerging IAC REE province
- The coastal belt of Chile is underexplored; however, the belt has numerous analogies with respect to the geology and weathering profile of the prolific southern China ionic rare earth province that spans from Yunnan in the southwest to Zhejiang in the southeast
- Following the acquisition of Huemul, the Company proposes an exploration programme at the La Marigen Project, drawing on leading geochemical and geophysical methodologies to identify priority drill targets
- The region is known to host mineralised clay horizons that are highly enriched in REE elements such as (Nd+Pr & Dy+Tb) as demonstrated at the nearby advanced IAC REE project, Penco, owned by TSX-listed Aclara Resources Inc (TSX: ARA) (Aclara)
- Importantly, the style of REE enrichment in this coastal belt frequently results in a mineral assemblage skewed towards heavy rare earth elements (HREE)
- NeoRe SpA's in-country team has extensive knowledge and experience operating in the region and was instrumental in the development of the target generation of rare earth resources, that led to resources that underpin Aclara’s Penco Project
- The Company will also assess further complementary mineral exploration opportunities in the region to assess value accretive opportunities in this IAC REE district
- Experienced minerals industry Executive, Dr John Mair, to join the Board and oversee the Company’s REE strategy. Dr Mair has over a decade of experience in the rare earth sector through his integral role in resource development, and metallurgical and feasibility studies of the Kvanefjeld project in Greenland
NeoRe holds 4 granted tenements and is the applicant pursuant to tenement applications that are considered to be highly prospective for IAC REEs, collectively covering a surface area of ~22,800ha and which comprise the La Marigen Project. Further details are provided in the Tenement Schedule in Appendix 5.
In parallel with the Acquisition, experienced Rare Earth industry executive Dr John Mair will join the Board of Pearl Gull and will provide guidance and oversight to the exploration activities in relation to the La Marigen Project.
The NeoRe in-country exploration team is highly credentialed and has extensive knowledge and experience operating in the region. They have a robust track record of delineating and developing REE resources and following this transaction will be well positioned to progress the La Marigen Project.
The Acquisition and proposed farm-in to the La Marigen Project would further strengthen the asset portfolio of Pearl Gull with the Company seeking to leverage its network in the resources industry to provide new opportunities for its shareholders while still seeking to realise value from the Cockatoo Island Project, located on Cockatoo Island, situated off the Northwest coast of Western Australia.
Chairman Russell Clark commented:
“The farm-in to the La Marigen Project provides the Company with an opportunity to potentially acquire an interest in an emerging ionic adsorption clay rare earth elements region, known to host high grades. Importantly the project area is located in close proximity to Concepción, which is a major industrial city on the coast of Chile.
The limited surface sampling programme within the project area returned results commensurate with reported occurrences of IAC REE deposits in the region. Additionally, our partners at NeoRe conducted (un-certified) bulk sample testing (200kg sample) at the University of Concepción, which returned preliminary results suggesting that the project areas are reasonably likely to host disorbable IAC REE.
This demonstrates the potential that the region is prospective to host IAC REE and provides the Company with an exciting opportunity within an emerging region."
Click here for the full ASX Release
This article includes content from Pearl Gull Iron 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.
PLG:AU
30 July
Victory Metals Marks "Breakthrough" Rare Earth Oxide Production at North Stanmore
Victory Metals (ASX:VTM) said on Tuesday (July 29) that its flagship North Stanmore heavy rare earth project has produced a mixed rare earth oxide (MREO) containing 94 percent total rare earth oxides (TREO).
For this result, a total of 453 samples averaging 525 parts per million TREO were taken from the project area to highlight the project’s true potential and value.
“To the company's knowledge, this represents the highest grade heavy rare earth enriched MREO produced in Australia directly from an Australian clay-hosted rare earth project,” the press release noted.
North Stanmore is located approximately 6 kilometres north of Cue, Western Australia, and has a January 2025 mineral resource estimate of 247.5 million tonnes (Mt), including 176.5 Mt, or 72 percent, in the indicated category.
"This is one of the most significant technical and commercial breakthroughs in Victory's journey so far,” said Victory CEO and Executive Director Brendan Clark, adding that the production record is “a first in Australia and sets a new benchmark for the whole sector.”
“(We are) now sitting at the most advanced downstream processing point, prior to rare earth separation and metallisation. This milestone was successfully achieved at the ALS metallurgy laboratory in Western Australia, in conjunction with Victory's own technical team.”
The company added that it is expecting to experience increased offtake interest following this, especially from companies seeking Chinese rare earths independence.
Victory said that it is strategically progressing offtake conversations and that further metallurgical work at North Stanmore is in progress.
On July 14, the company also shared that it has received approval from the US Government’s System for Award Management, a prerequisite to engage with US federal agencies such as the Department of Defence (DoD) and the Export-Import Bank of the United States.
This means that the company can now participate in strategic procurement, funding and partnership programs under U.S. federal oversight.
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.
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28 July
Scoping Study Delivers Robust Economics and Upside Potential
Vital Metals Limited (ASX: VML) (“Vital”, “Vital Metals” or “the Company”), an advanced- stage rare earths exploration and development company, is pleased to announce the completion of a Scoping Study (“Study”) for the 100%-owned Tardiff Deposit (“the Project”), 100km east of Yellowknife, Northwest Territories, Canada.
This Scoping Study considers the advancement of Tardiff, a Rare Earth and Niobium project located in the NWT of Canada and 100% owned by Vital Metals. This Study evaluates development of a hard rock starter open pit that extracts only 15% of the total Tardiff Mineral Resource Estimate of 192.7Mt at 1.3% Total Rare Earth Oxide (TREO). The adjacent 100% owned North T and South T deposits have not been included as part of this Study.
Highlights:
- Scoping Study delivers robust financial outcomes of:
- Pre-tax NPV8 of US$776M and 32% IRR
- Post-tax NPV8 US$445M and 25.5% IRR
- Base case commodity pricing of US$90/kg of neodymium (Nd) and praseodymium (Pr), US$1322/kg for terbium (Tb) and US$338/Kg for dysprosium (Dy). The breakeven price for NdPr using all other prices from the base case is US$33.68/ kg.
- Average annual production estimate of 56kt of concentrate at a grade of 26.4% TREO and 3.3% Nb2O5, with 45.1% global TREO recovery over an initial 11-year life of mine (LOM). Average annual Rare Earth Element (REE) production is estimated to be: 2.9kt of Nd, 0.9kt of Pr with less than 100 tons each of Dy and Tb.
- Further infill drilling should increase the size and confidence of the resource supporting a longer LOM and thereby expanding project economics.
- Pit design targets a daily production of 14,000 tpd (approx. 3,000,000 tpa) with a very low 0.3:1 stripping ratio.
- Capital cost estimated at US$291 million (A$455 million), including a 35% contingency of US$68M; operating cost estimated at US$24/dry metric tonne mined (includes a 20% contingency).
- The Study states that building a Canadian supply chain will be preferred for the project’s success. The Canadian Rare Earth Supply Chain Consortium, in which Vital plays a founding role, will foster the collaboration between industry, government and technical partners to expedite the timeline from lab, and pilot work and demonstration plant to be ready to scale to commercial production of separated metals, permanent magnets and wind turbines.
- To potentially improve the project’s economics, the Study recommends advancing to a prefeasibility Study (PFS) with additional extensive metallurgical testing to:
- Optimize TREO and niobium recoveries;
- Prove the payability of niobium; and
- Test the recovery of zircon.
Vital Metals’ Managing Director Lisa Riley said: "The Study is an essential step towards moving the Project forward. It is a first step towards Vital playing a key role in building critical minerals supply chain in Canada. The Study has outlined the potential to build a viable, long- term rare earths and niobium project at Tardiff. Recommended next steps will aim to capture further economic upside by optimizing REE and Nb recoveries, lifting concentrate grades and delivering higher payability for the economic commodities.”
Figure 1: Vital Metals' Nechalacho Project, Canada
Click here for the full ASX Release
This article includes content from Vital Metals, 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.
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21 July
Rick Rule's Top 3 ASX Mining Stock Picks for Investors
Rule Investment Media proprietor Rick Rule has shared his top three ASX mining stocks.
In an interview with the Investing News Network at this year's Rule Symposium, the veteran investor and speculator underlined his appreciation for companies focusing on “off-the-radar” sectors.
“I love tier-one deposits in out-of-favour commodities,” he explained.
Read on for the three ASX companies that Rule listed as his favourites.
1. Meteoric Resources (ASX:MEI)
Meteoric Resources' flagship asset is the Caldeira rare earth ionic clay project.
The Brazil-based property has a global mineral resource estimate of 740 million tonnes at 2,572 parts per million (ppm) total rare earth oxides (TREO) at a 1,000 ppm TREO cut-off grade.
Through the project, the company aims to become the world’s lowest-cost producer of rare earths products.
“I believe Meteoric holds a deposit of at least AU$20 billion in-situ reserves and resources, set to be constructed in the best quartile worldwide,” Rule explained in the interview.
Rule said Brazil is relatively stable, and noted that Caldeira is in proximity to roads, power, workers and water.
However, he warned that Meteoric is a risky investment that requires patience.
“Bottom line on this, I could easily lose half my money if I'm wrong, and there's going to be lots of volatility," he said. However, Rule believes that if things go right, Meteoric could provide a 10, 20 or 30 to one return.
2. Sovereign Metals (ASX:SVM,OTCQX:SVMLF)
The second stock mentioned by Rule was Sovereign Metals, a rutile and graphite developer in Malawi. The firm describes itself as the next largest, lowest-cost and lowest-carbon producer of the two critical minerals.
“Those are also commodities that are off the radar screen,” Rule said. "Nobody cares about graphite. Very few people can spell rutile. And again, it's an enormous deposit."
Sovereign’s flagship project is the Kasiya rutile-graphite project, which holds 17.9 million tonnes of rutile; according to the company, it is the world’s largest-known rutile deposit.
It is also the world’s second largest-known flake graphite deposit, with 24.4 million tonnes of graphite.
On June 10, testwork by Japanese firm Toho Titanium (TSE:5727) confirmed that natural rutile from Kasiya is suitable for high-performance titanium metal production. “It is of a quality that can be used without any issues,” the announcement reads, with the project’s rutile exceeding the 95 percent rutile grade requirement.
Rule underlined that both Australians and North Americans are overlooking Sovereign.
3. Centaurus Metals (ASX:CTM,OTCQX:CTTZF)
Centaurus Metals, which is also in Brazil, is the third ASX stock shared by Rule.
“It’s a junior and it's in the nickel business,” he said, adding that investors currently hate nickel. “I believe (Centaurus holds) the best undeveloped sulphide nickel deposit in the world."
Centaurus acquired its Jaguar nickel sulphide project in Brazil's Carajás mineral province from mining giant Vale (NYSE:VALE) in April 2020. The company says the project is the “cornerstone” of its ambition to build a diversified Brazilian critical minerals business with best-in-class ESG credentials.
Jaguar’s resource estimate stands at 138.2 million tonnes at 0.87 percent nickel for 1.2 million tonnes of contained nickel.
One more ASX mining stock pick from Rule
Toward the end of the interview, Rule mentioned Emerald Resources (ASX:EMR).
“I have a huge position in Emerald, but I probably wouldn’t enter it today. Still, I have huge built-in gains,” he said.
“That’s something people can take a look at, only if they’re not as fond of hate as I am.”
Watch the full interview with Rick Rule above.
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.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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18 July
Top 5 Australian Mining Stocks This Week: American Rare Earths Jumps On Halleck Creek Results
Welcome to the Investing News Network's weekly round-up of Australia’s top-performing mining stocks on the ASX, starting with news in Australia's resource sector.
This week, rare earths-focused explorers and developers appear on the top list, alongside gold-antimony and hydrogen companies. The week's top performer was American Rare Earths (ASX:ARR), which released leach recovery results from metallurgical testing at its Halleck Creek project in Wyoming, US, and is progressing optimisation work and test mining.
In resource news, gold prices rose on Wednesday (July 16) following news reports that US President Donald Trump planned to fire Federal Reserve Chair Jerome Powell, but trimmed gains after Trump denied the claim.
Market and commodity price round-up
The S&P/ASX 200 index opened at 8,570.40 on Monday (July 14) and closed at 8,639.00 on Thursday (July 17), marking a 0.8 percent increase over the period.
As for precious metals, gold demonstrated a 0.77 percent fall in US dollars, going from US$3,354.74 on July 14 to US$3,328.90 on July 17 at 5 p.m. AEST. On the other hand. gold increased 0.8 percent in Australian dollars, moving from AU$5,102.33 to AU$5,142.94 over the same period.
Silver pulled back in US dollars through Thursday, starting the week at US$38.41 in US dollars and closed at US$37.77, a 1.67 percent decrease. In Australian dollars, ended the period flat, going from AU$58.39 to AU$58.35.
Top ASX mining stocks this week
How did ASX mining stocks perform against this backdrop?
Take a look at this week’s five best-performing Australian mining stocks below as we break down their operations and why these mining stocks are up this week.
Data for this article was retrieved at 4:00 p.m. AEST on Thursday using TradingView's stock screener. Only companies trading on the ASX with market capitalisations greater than AU$10 million are included. Mineral companies within the non-energy minerals, energy minerals, process industry and producer manufacturing sectors were considered.
1. American Rare Earths (ASX:ARR)
Weekly gain: 75 percent
Market cap: AU$220.73 million
Share price: AU$0.455
American Rare Earths is a rare earths explorer and developer advancing its flagship Halleck Creek rare earths project in Wyoming, US. The project’s Cowboy State mine area is currently in the prefeasibility and test mining stage.
On Wednesday, the company announced the results of a leach testing program undertaken on allanite-enriched mineral concentrate from Halleck Creek, reporting “strong leach recoveries and low impurities.”
American Rare Earths reported on Friday (July 18) that mineral processing optimisation tests at Halleck Creek are underway. Test mining at Halleck Creek's Cowboy State Mine area is also scheduled to commence.
Shares of the company peaked at AU$0.475 on Thursday, a day after the announcement of the leach testing results.
2. Critical Resources (ASX:CRR)
Weekly gain: 66.67 percent
Market cap: AU$13.85 million
Share price: AU$0.005
Critical Resources is an explorer developing lithium and rare earths projects in Australia and Greenland.
Its flagship project is the Mavis Lake lithium project in Canada, located near Dryden in Northwestern Ontario. In Australia, its main focus is the Amoco gold-antimony project in Armidale, New South Wales.
On July 10, the company began a soil geochemistry program at Amoco, marking a step toward a maiden drill program. It is expected to be completed by the end of July, while final assay results are anticipated in late August.
“The systematic multi-element geochemical survey is being supported by modern geochemical assay techniques, which have led to significant improvements in the detection limits of critical pathfinder elements,” CEO Tim Wither said.
Shares of the company peaked at AU$0.005 on Wednesday.
3. Rokeby Resources (ASX:RKB)
Weekly gain: 60 percent
Market cap: AU$19.62 million
Share price: AU$0.016
Rokeby Resources, previously Inca Minerals, is an exploration company focused on Australian gold and antimony projects across Queensland, Western Australia and the Northern Territory. The company completed its name change on Thursday, and announced an ASX ticker symbol change from ICG to RKB effective July 21.
Rokeby is currently exploring its flagship Hurricane project in North Queensland, located in the Hodgkinson Province.
The company reported rock chip sampling results at Hurricane on Wednesday, including a peak antimony sample grading 6.53 antimony and 6.44 grams per tonne (g/t) gold and a peak gold sample grading 69.5 g/t.
“The results extend the footprint of known high-grade gold and antimony mineralisation, building on previous sampling that confirmed the presence of a significant orogenic system,” Rokeby said.
The company is now performing field preparations at Hurricane, with drilling to commence upon site work completion.
Shares of Rokeby hit their highest point of the week on Thursday at AU$0.016.
4. Provaris Energy (ASX:PV1)
Weekly gain: 53.85 percent
Market cap: AU$14.76 million
Share price: AU$0.02
Provaris Energy is a compressed hydrogen transport and storage solutions company with projects in Norway.
It also used to hold a green hydrogen project in the Tiwi Islands, part of Australia’s Northern Territory. However, in a July 10 article by Renew Economy, Provaris told the publication it has officially dropped its Tiwi hydrogen project due to a slow process for economic and land agreements, alongside a waning offtake interest from Singapore.
The company has transferred its focus and technical learnings to its FjordH2 project in Norway and its proprietary gaseous hydrogen containment tank. It is progressing its H2Neo carrier and H2Leo barge, which use the technology, toward “final marine classification and approvals, along with critical safety studies.”
The company’s share price began gaining earlier this week following a Monday report on the stock by RaaS Research. The firm stated it believed Provaris was significantly undervalued based on its analysis of the company’s business, with its tank technology providing upside. RaaS estimated a net asset value range of AU$83 million to AU$147 million, translating to AU$0.11 to AU$0.19 per share.
5. RareX (ASX:REE)
Weekly gain: 50 percent
Market cap: AU$24.84 million
Share price: AU$0.027
RareX is a critical minerals company focused on rare earths, niobium and gallium.
The company’s assets include the Cummins Range rare-earth-phosphate, Khaleesi niobium-gallium and Mount Manbridge heavy rare earths projects in Western Australia, and the Mrima Hill rare-earth-niobium project in Kenya.
RareX has been re-assaying its previous drill cores from Cummins Range after discovering gallium oxide grades of up to 6,826 grams per tonne in historical drill cores in late March.
In late June, the company reported that the first 15 holes of the re-assaying confirmed the significance of the gallium resource, with consistent results including 60 meters at an average grade of 99 g/t gallium oxide.
Its most recent project news came on July 7, when it shared news from the first few days of exploration at the Mount Manbridge project. On Thursday, RareX halted trading at its request pending an important announcement related to a capital raising. Trading is scheduled to commence on Monday.
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.
Editorial Disclosure: American Rare Earths and Provaris Energy are clients of the Investing News Network. This article is not paid-for content.
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16 July
Apple, MP Materials Ink US$500 Million Deal to Build US Rare Earth Magnet Supply Chain
Apple (NASDAQ:AAPL) and MP Materials (NYSE:MP) have signed a US$500 million supply agreement to manufacture rare earth magnets in the US from 100 percent recycled materials.
Under the deal, MP will deliver recycled magnets starting in 2027 to support “hundreds of millions” of Apple devices, including iPhones, iPads and MacBooks. Announced on Tuesday (July 15), the deal marks a major step forward in Apple’s plan to build more sustainable domestic supply chains for its core technologies.
“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the US economy,” Apple CEO Tim Cook said in a press release. “Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States.”
The two companies spent nearly five years developing recycling technologies capable of meeting Apple’s stringent performance and environmental standards. Now, MP will build a commercial-scale recycling line at its Mountain Pass site to process magnet scrap and recovered components from decommissioned products.
To fulfill Apple’s requirements, MP will also expand its Fort Worth, Texas, facility — dubbed “Independence” — creating dozens of new roles in manufacturing, as well as research and development.
“We are proud to partner with Apple to launch MP’s recycling platform and scale up our magnetics business,” said MP CEO James Litinsky in a separate Tuesday press release. “This collaboration deepens our vertical integration, strengthens supply chain resilience, and reinforces America’s industrial capacity at a pivotal moment.”
MP's share price soared 20 percent following the news, pushing its market cap to near US$10 billion.
Analysts view the deal as a validation of MP’s strategy to build a fully domestic rare earth magnet supply chain and as a boost to national efforts to reduce reliance on China, which controls roughly 70 percent of global rare earths supply.
MP currently operates the only active US rare earths mine at Mountain Pass. Rare earth magnets produced from its materials power devices ranging from consumer electronics and electric vehicles to wind turbines and defense systems.
MP teams up with defense department
Just days before the Apple deal, MP secured a US$400 million preferred equity investment from the US Department of Defense (DoD), making the Pentagon its largest shareholder.
The funds will support a second magnet manufacturing plant — called the 10X facility — which is slated for commissioning in 2028 and will increase MP’s annual magnet output to 10,000 metric tons.
The government has also committed to purchasing 100 percent of the magnets produced at the new plant for 10 years, guaranteeing a floor price of US$110 per kilogram for neodymium-praseodymium oxide.
If market prices fall below that level, the DoD will pay the difference. Once production begins, the government will also receive 30 percent of any profits above the guaranteed price.
With operations spanning mining, separation, metallization and magnet production, MP is currently the only US firm with end-to-end capabilities for rare earth magnet manufacturing. The company is also expecting a US$150 million Pentagon loan to enhance its heavy rare earths separation capabilities at Mountain Pass.
MP’s Independence facility in Texas, alongside the upcoming 10X plant, anchors its downstream production strategy. The recycled feedstock used for Apple’s magnets will be sourced from post-industrial waste and retired electronics — reducing environmental impact while reinforcing resource resilience.
Apple, for its part, is pressing ahead with its US$500 billion US manufacturing initiative.
Earlier this year, it announced plans for a new artificial intelligence server factory in Texas and signaled continued interest in reshoring key parts of its production ecosystem.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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