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Rethinking Rare Earths Resource Development
Medallion Resources Ltd. (TSXV:MDL,OTC:MLLOF,OTCQX:MLLOF,FWB:MRDN) is pursuing near-term magnet metal production by exploiting by-product monazite. The rare earth elements (REEs) neodymium and praseodymium (NdPr) are the key input material for powerful permanent magnets. These high-powered rare earth magnets are required for the growing demands of vehicle electrification, wind power generation and robotics. China’s domination of the REEs market is a significant supply chain headache for North American and European technology manufacturers, only aggravated further by the recently imposed US tariffs on Chinese sourced rare earths.
Swiss investment bank UBS recently projected dramatic growth in the demands for NdPr based upon expected growth of the electric vehicle (EV) and plug-in EV hybrid vehicle marketplace. Working with its refining partner Rare Earth Salts Separations and Refining (RES), a US-based materials technology company, Medallion aims to meet this increasing demand for strategic magnet metals. By utilizing the by-product mineral monazite, this can be done quickly and cheaply and Medallion is targeting North America for its first production.
Monazite is widely available as a by-product from heavy mineral sand mining operations and has a history as a commercial REE resource with well-understood metallurgy. Medallion Resources is pursuing monazite purchasing agreements, and has recently entered into a processing partnership with RES. The company is has completed critical bench-scale metallurgical testing and is finalizing the process flow sheet which will be used for engineering estimates on the capital costs for a commercial monazite rare earth extraction plant.
Medallion Resources Highlights
- Upside and economics tied to key magnet metals market drivers: electric and hybrid vehicles, wind generators and robotics
- Minimal technical risk – modern metallurgical process utilizing all material and utilizing agent recycling
- Very low capital costs compared to hard rock exploration plays
- Strategic leverage to:
- Industrial world seeking non-Chinese sources (especially Germany and Japan)
- New cost-competitive separation technologies (Rare Earth Salts)
- Attractively priced and de-risked
- A well-respected, experienced management and technical team with wide industry depth