Friday 19th July 2019

Resource Clips


Posts tagged ‘REE’

Rare earths from coal: GeoScience BC studies British Columbia’s potential

July 18th, 2019

by Greg Klein | July 18, 2019

China’s overwhelming dominance of rare earths mining and processing isn’t the only supply problem facing REEs. “Traditional rare earth ore deposits are fast depleting,” points out Maria Holuszko. “They are projected to meet demand for only the next 15 to 20 years.” As lead researcher on a new GeoScience BC project, she and her team plan further study into the viability of sourcing the stuff from coal, specifically southeastern British Columbia’s metallurgical fuel. Plans call for sampling East Kootenay deposits and tailings to quantify and characterize REEs, and to test extraction processes at the laboratory scale.

Rare earths from coal GeoScience BC studies British Columbia’s potential

REEs have already been found in coal deposits in B.C., the United States, the Russian Far East and elsewhere. The U.S., which now has REEs at the forefront of its critical minerals strategy, has funded US$10 million to study extraction from coal and/or its byproducts. As assistant professor of mineral processing and co-founder of the Urban Mining Innovation Centre at UBC’s Norman B. Keevil Institute of Mining Engineering, Holuszko will head a project following up on work by one of her PhD candidates, Vinoth Kumar Kuppusamy. Kumar has already conducted work on a 300-kilo run-of-mine sample taken from two Kootenay operations.

Phase I of the current project calls for analyzing field samples to compile a database of East Kootenay coalfield REE concentration. The next stage involves lab-scale assessment of REE enrichment and an extraction test.

Work should wrap up by March 31, 2021, after which peer-reviewed results will be made public. The not-for-profit’s funding comes from the province, although UBC may contribute facilities and staff time, GeoScience BC director of external relations Richard Truman says.

With a mandate to provide information that helps government, industry and communities make informed decisions, GeoScience BC has worked on over 200 projects since 2005. Watch this video to learn more.

 

Visit the East Kootenay coalfields

Three open pit metallurgical coal mines operated by Teck Resources TSX:TECK.A/TECK.B welcome the public this summer. Saturday bus tours leave Elkford during July for two-hour trips to Greenhills and during August for two-and-a-half hour trips to Fording River. Bus tours from Sparwood leave Tuesdays, Wednesdays and Thursdays for two-hour trips to the Elkview mine.

For reservations and further info (including footwear and other clothing requirements), call the Elkford Visitor Centre at 1-855-877-9453, and the Sparwood Chamber of Commerce at 1-877-485-8185. Last trips leave Elkford August 31 and Sparwood August 29.

The U.S. Department of Commerce announces a strategy to ensure critical minerals supply

July 16th, 2019

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Washington continues critical inquiries into rare earths and uranium supply chains

July 15th, 2019

by Greg Klein | July 15, 2019

While somewhat relaxing its concern about uranium, the U.S. appears increasingly worried about rare earths supply. A Reuters exclusive says Washington has begun an inventory to itemize domestic RE projects.

Washington continues critical inquiries into rare earths and uranium supply chains

With an inventory of domestic RE projects
already underway, the U.S. called for a study
of uranium supply chain potential.

“The Pentagon wants miners to describe plans to develop U.S. rare earths mines and processing facilities, and asked manufacturers to detail their needs for the minerals, according to the document, which is dated June 27,” the news agency reported. “Responses are required by July 31, a short time frame that underscores the Pentagon’s urgency.”

The request mentions the possibility of investment by the military, Reuters added.

The move marks another development in American plans to reduce the country’s dependency on critical minerals from economic and geopolitical rivals. Last month the U.S. announced a new critical minerals strategy calling for closer co-operation with allies. Out of an official list of 35 critical minerals, rare earths repeatedly come up for special attention. China supplies 80% of American demand for this economic and military essential, with more imports coming indirectly from China. Compounding the conundrum is the fact that America’s only rare earths mine, Mountain Pass in California, ships its entire output to China.

Last month Reuters stated that U.S. President Donald Trump and Prime Minister Justin Trudeau instructed their officials “to develop a joint action plan on critical minerals collaboration.”

But if heightened American urgency about some critical minerals looks positive for Canadian projects, so does a reduction in urgency about U.S. uranium supplies.

Cameco Corp TSX:CCO expressed itself pleased with Trump’s decision not to introduce new trade restrictions on uranium imports.

The president disagreed with a July 12 report stating that the country’s heavy reliance on imports threaten to impair U.S. national security. The secretary of commerce found the country’s foreign dependency now accounts for 93% of American uranium supply, up from 85.8% in 2009. The secretary attributed the number to “increased production by foreign state-owned enterprises, which have distorted global prices and made it more difficult for domestic mines to compete,” the White House stated.

But, citing significant concerns nonetheless, Trump called for the creation of a nuclear fuel working group “to develop recommendations for reviving and expanding domestic nuclear fuel production” within 90 days.

Cameco president/CEO Tim Gitzel said the company “also sees tremendous value in increasing co-operation between the United States and Canada to address critical mineral issues and strengthen security of supply on a North American, rather than strictly national, basis.”

Trump and Trudeau’s commitment to a joint action plan “is an excellent initiative, and we see uranium being a key component of that strategy,” Gitzel added.

The U.S. report results from a petition by Energy Fuels TSX:EFR and Ur-Energy TSX:URE, who together took credit for over half of U.S. uranium production in 2017. Yet their estimates for last year showed total domestic production supplied only about 2% of U.S. demand.

The companies called for a 25% domestic quota on uranium purchases in the U.S., suggesting state-owned companies in Russia, Kazakhstan and Uzbekistan keep prices below a profitable threshold for American producers. The Eurasian trio provided about one-third of U.S. demand in 2017.

“If Russia and its allies take control of this critical fuel, the threat to U.S. national and energy security would be incalculable,” the companies maintained.

Commerce Resources to provide rare earths and byproduct samples to potential customers

July 5th, 2019

by Greg Klein | July 5, 2019

Commerce Resources to provide rare earths and byproduct samples to potential customers

 

With trade tensions once again demonstrating the need for rare earths supply outside China, Commerce Resources TSXV:CCE announced plans for its advanced-stage Ashram deposit in northern Quebec. The company intends to resume pilot plant metallurgical work, provide rare earths samples to interested parties and also upgrade its potential fluorspar byproduct.

Using lab facilities in Colorado, Commerce plans to produce several kilograms of material for companies that have requested samples. The lab will also work on upgrading the deposit’s fluorspar from metallurgical grade to the usually more expensive acid grade.

An essential ingredient for coolants used in refrigerators, freezers and air conditioners, acid grade fluorspar is also integral to processing uranium and aluminum. Like rare earths, fluorspar ranks among the 35 critical minerals listed by the United States. Over 60% of 2018 global production came from China, according to U.S. Geological Survey data. NorFalco Sales, a division of Glencore Canada Corp, has requested the fluorspar sample.

The pilot plant work will complement Commerce’s pre-feasibility studies as the Ashram deposit progresses.

Using Ashram material, the Colorado plant has already produced high-grade concentrates above 45% total rare earth oxides with recovery surpassing 70%, “comparable to current and past hard rock producers,” Commerce noted.

Separate, Quebec-funded studies at l’Université Laval produced a mixed rare earth oxide concentrate from Ashram material, showing the deposit’s versatility to processing procedures.

A key advantage of Ashram lies in its carbonatite-hosted mineralization and relatively simple monazite, bastnasite and xenotime mineralogy, amenable to conventional rare earths processing.

The near-surface deposit hosts a 2012 resource estimate using a 1.25% cutoff to show:

  • measured: 1.59 million tonnes averaging 1.77% total rare earth oxides

  • indicated: 27.67 million tonnes averaging 1.9% TREO

  • inferred: 219.8 million tonnes averaging 1.88% TREO

Ashram also features strong distribution of the high-demand magnet feed elements neodymium, praseodymium, dysprosium and terbium.

In a report issued last month, Adamas Intelligence stated that permanent magnets accounted for over 90% of TREO consumption by value last year. “This share is poised to expand further as demand (and prices) for neodymium, praseodymium, dysprosium and terbium continue to rise strongly in the years ahead.”

Ashram’s distinctions suggest the project could require a relatively smaller metallurgical plant, along with potentially lower capex and opex, Commerce stated.

Last May Commerce and two Inuit organizations signed a letter of intent to ensure participation as the project moves forward.

At another critical minerals project just a few kilometres away, Saville Resources TSXV:SRE works towards a 75% earn-in from Commerce on the Niobium Claim Group. Following a spring drill program that found high-grade, near-surface niobium along with tantalum and phosphate, Saville looks forward to a Phase II campaign.

In southern British Columbia, Commerce also holds the advanced-stage Blue River tantalum-niobium deposit.

Read more about China’s dominance in global rare earths supply.

Rick Rule comments on China’s possible use of rare earths as a trade war weapon

June 24th, 2019

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New neodymium and dysprosium sources needed by 2030 to avert shortages: Adamas Intelligence

June 19th, 2019

by Greg Klein | June 19, 2019

As the U.S.-China trade conflict intensifies concern about critical metals, Adamas Intelligence publishes a readable guide to rare earths—what they are, where they come from and what they’re used for.

“In just a period of decades, rare earth elements have seeped deeply into the fabric of modern technology and industry and have proven exceptionally challenging to duplicate or replace,” states the report entitled Rare Earth Elements: Small Market, Big Necessity.

New neodymium and dysprosium sources needed by 2030 to avert shortages: Adamas Intelligence

Image: Ascannio/Shutterstock.com

Of eight categories of end uses, permanent magnets and catalysts garnered over 60% of world demand for total rare earth oxides last year, according to the independent research and advisory firm.

By value, permanent magnets alone surpassed 90% of TREO consumption. “This share is poised to expand further as demand (and prices) for neodymium, praseodymium, dysprosium and terbium continue to rise strongly in the years ahead.”

Looking forward a decade, Adamas forecast that “global annual demand for neodymium oxide and dysprosium oxide (or oxide equivalents) will substantially exceed global annual production by 2030, leading to the depletion of historically accumulated inventories and, ultimately, shortages of these critical magnet materials if additional sources of supply are not developed.”

Outside China, Adamas reports only 8.49 million tonnes of in-situ TREO in 17 deposits considered compliant by NI 43-101, JORC or South Africa’s SAMREC regulations. Located in 10 nations on five continents, just two are in operation: Lynas Corp’s Mount Weld mine in Western Australia and MP Materials’ Mountain Pass mine in California.

The numbers shoot way up and China takes prominence when U.S. Geological Survey data on both compliant and non-compliant deposits is considered. China’s share of the approximate world total of 120 million tonnes comes to about 38%. Another 19% each is ascribed to Brazil and Vietnam, 10% to Russia, and the rest to India, Australia, the U.S. and other countries “presumably dominated by Canada and Greenland.”

Mine production demonstrates China’s overall dominance, which is further confirmed by refining.

Adamas estimates last year’s global TREO and TREO-equivalent mining at 184,000 tonnes, with the Middle Kingdom responsible for 68% of primary production and nearly 100% of secondary production.

Last year’s global production rose 21% over 2017, which Adamas attributed to substantial production hikes in China, Myanmar and the U.S., where Mountain Pass re-opened following the bankruptcy of its former owner.

Additional primary producers were Myanmar (11%), Australia (10%), the U.S. (9%) and others (2%). Virtually all non-Chinese miners rely on China for concentrating and separating rare earths. Lynas stands out as the prominent exception.

The company has a processing facility in Malaysia, but that country has threatened to shut it down by September if Lynas doesn’t remove 450,000 tonnes of low-level radioactive waste accumulated over seven years. Malaysia’s energy and environment minister and Western Australia’s mines minster were to discuss moving the waste to WA, but the Malaysian counterpart postponed a meeting scheduled for June 20 “pending further developments,” Reuters stated. The WA state government has already stated its refusal to accept the waste.

Download the Adamas Intelligence report Rare Earth Elements: Small Market, Big Necessity.

Read more about rare earths and other critical metals.

Technology metals expert Jack Lifton calls for progress on critical minerals

June 17th, 2019

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Towards a critical resource

June 13th, 2019

Saville Resources exceeds historic high grades for niobium-tantalum in Quebec

by Greg Klein

The project’s first drill campaign in nine years poses a big question: Why was this the project’s first drill campaign in nine years?

Saville Resources/Commerce Resources report best-yet niobium hole from Quebec critical minerals project

Saville president Mike Hodge examines
core at the Niobium Claim Group.

Even in the face of highly encouraging historic niobium-tantalum results, this program’s first hole exceeded expectations. More near-surface high grades and wide widths followed, culminating in a fourth hole that surpassed them all. Now Saville Resources TSXV:SRE looks forward to more drilling to build an inferred resource on the Niobium Claim Group in northern Quebec’s Labrador Trough.

But why the nine-year hiatus? The answer can be illustrated by Commerce Resources’ (TSXV:CCE) Ashram rare earths deposit, two kilometres away. Moving that project towards pre-feasibility took precedence, even when the company found strong niobium-tantalum intercepts on another part of its Eldor property. To give these other critical minerals their due, Commerce and Saville signed an agreement last year allowing the latter company to earn 75% of the 1,223-hectare niobium claims.

Additional high-grade boulder samples renewed interest in a number of prospective areas but Saville’s initial drill program in spring 2019 targeted Mallard, the most advanced zone with 17 historic holes totalling 4,328 metres. The new program added five holes (one hole was lost) and 1,049 metres.

“We were confident that we could improve on the historic drill results and we did that,” notes Saville president Mike Hodge.

Near-surface highlights from the best hole showed 0.8% Nb2O5 over 31.5 metres, 0.79% over 37 metres, 0.67% over 19.95 metres and 0.5% over 33.5 metres. Eleven individual samples from that hole exceeded 1%, with one sample reaching as high as 1.68% over 1.5 metres. (True widths were unknown.) Tantalum and phosphate also brought strong numbers.

A 50-metre step-out east of another of the campaign’s successful holes, 50 metres southeast of a second and 200 metres southeast of a third, EC19-174A was also proximal to impressive historic results.

Saville Resources exceeds historic high grades for niobium-tantalum in Quebec

In just a few of the recent highlights, however, EC19-173 featured 0.66% Nb2O5 over 14.5 metres. EC19-171 hit 0.7% over 38.28 metres, including 1.1% over 5.41 metres. EC19-172 reached 0.62% over 19 metres.

Among tantalum grades were 274 ppm Ta2O5 over 100.8 metres from EC19-172, and 267 ppm over 26 metres from EC19-171.

The step-outs extend Mallard’s strike 100 metres southeast and also suggest a possible northern extension towards the project’s Miranna and Spoke targets, as yet undrilled.

That’s despite very high-grade boulder samples from Miranna showing 2.75%, 4.24%, 4.3% and an exceptional 5.93% Nb2O5.

“These are still untested targets which we believe could have significantly higher grades than Mallard,” says Hodge. “But my first goal would be an inferred near-surface resource in the Mallard area.”

Contributing to that would be historic data, which includes intervals of 0.82% Nb2O5 over 21.9 metres, 0.9% over 4.8 metres and 1.09% over 5.8 metres.

In all, the Niobium Claim Group underwent 41 historic holes for 8,175 metres, with all field work since 2008 conducted by Dahrouge Geological Consulting. Saville has so far exceeded its first-year spending commitment of $750,000 out of a five-year, $5-million exploration agenda that would earn 75% of the project from Commerce.

But if Miranna’s 5.93% Nb2O5 sample looks outstanding, another boulder collected west of the project’s Northwest area soared up to 16.1%, also showing 7,540 ppm Ta2O5.

“That was the highest, but there were plenty in the 3% to 6% niobium range,” Hodge emphasizes.

Saville Resources exceeds historic high grades for niobium-tantalum in Quebec

With overlapping boulder trains on the property, “there are a few locations they could be coming from,” he adds. “But the likelihood of it coming from the Spoke or Miranna areas would be the highest probability.”

Other areas of interest include the Northwest zone, northwest of Miranna. Location of 11 historic holes totalling 2,257 metres, its results included 0.61% Nb2O5 over 12 metres.

South of Mallard, the Star Trench area has four historic holes for 664 metres, with results including 1.5% Nb2O5 and 1,810 ppm Ta2O5 over 0.52 metres, and 1.69% Nb2O5 and 2,220 ppm Ta2O5 over 0.31 metres.

Niobium and tantalum both rank on the U.S. list of 35 critical minerals. Heightened concern has brought concerted American efforts to develop reliable sources and create supply chains domestically and with allied countries. In early June the U.S. unveiled its Energy Resource Governance Initiative to work with allies as part of the president’s critical minerals strategy announced a few days earlier.

Imports provide America’s total supply of both niobium and tantalum. Niobium, used for alloys and super-alloys in jet engines, rockets and other manufactures, comes to the U.S. mostly from one company in Brazil. According to 2018 figures from the U.S. Geological Survey, Brazil mined 88.2% of global supply, while Canada extracted another 10.3%.

Tantalum finds widespread use in electronics as well as super-alloys for jet engine components. USGS numbers from last year attribute 39.5% of global supply to the Democratic Republic of Congo, 27.8% to Rwanda, 8.3% to Nigeria and 6.7% to China. Apart from security of supply, concerns about conflict minerals result from troubling conditions and murky supply routes in the DRC and Rwanda.

Meanwhile Hodge wants to get back to the field. “We made a great first step in expanding on what we had,” he says. “All of these holes ended in a mineralized zone. The reason we stopped them there was to start a near-surface inferred resource. There’s carbonatite with mineralization in niobium, tantalum and phosphate open in all directions, so the results definitely call for more drilling.”

See more highlights from the Niobium Claim Group’s spring 2019 program.

Saville Resources/Commerce Resources report best-yet niobium hole from Quebec critical minerals project

June 11th, 2019

This story has been expanded and moved here.

Nayumivik Landholding Corporation president Sammy Koneak comments on a letter of intent with Makivik Corporation and Commerce Resources in Quebec’s Nunavik region

June 10th, 2019

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