How does a junior company find success in the complex world of rare earths? Derek Hamill, head of research and communications for Zimtu Capital TSXV:ZC, looks at Commerce Resources’ (TSXV:CCE) Ashram deposit in northern Quebec, finding advantageous mineralogy, REE distribution and metallurgy.
“We believe the last point to be material and often ignored—beneficiation of ore into a mixed [rare earths concentrate] can be sold to various hydrometallurgical processors who then can separate into customer-specific [rare earth oxides],” states Hamill’s 10-page research report. In that manner, a junior can avoid the “substantial business risk” of trying to process separated oxide products itself.
On October 6 Commerce Resources closed an oversubscribed private placement of over $5 million.
Disclaimer: Zimtu Capital Corp and Commerce Resources Corp are clients of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in those companies.