Investing in Rare Earth Exploration

Sep 2, 2024

Rare Earth Industry Overview

  • Presenter: Michael from GE Investor Insights
  • Topic: Introduction to investing in rare earth junior exploration companies

Importance of Rare Earths

  • Rare earths have been produced cheaply and efficiently by China and Myanmar for over 20 years.
  • Identified as critical minerals for countries like Australia, US, UK, and other Western nations.
  • Key areas of development needed:
    • Supply
    • Refining
    • Manufacturing
  • Western nations lag about 20 years behind China in rare earth mining, processing, and manufacturing.
  • Magnet rare earths create magnets with 40% stronger magnetic fields, essential for green technologies like wind turbines.

Types of Rare Earth Deposits

  1. Hard Deposits
    • Usually associated with carbonatites (e.g., Linus and Mount Weld).
  2. Ionic Rare Earths (Clay-hosted Rare Earths)
    • Liberated by weathering processes, loosely bound to clays or other rocks.
    • Cheap and efficient to extract due to ease of separation.
  3. Clay-hosted Rare Earth Deposits
    • More complex to differentiate from ionic rare earths.
    • Rare earths can be bound in weather-resistant minerals, iron cements, or have a small ionic component.

Economic Considerations

  • Grade of Rare Earths
    • Traditional cut-off: 300 PPM TREO (Total Rare Earth Oxide)
    • Important to consider TREO minus Cerium (Ce), as cerium is abundant and less valuable.
    • Significant economic grade: 500-750 PPM TREO minus Ce.

Identifying Good Investments

  • Indicators of Good Rare Earth Companies
    • High ratio of heavy rare earths to light rare earths.
    • Transparent reporting of TREO minus Ce values.
    • Positive metallurgical results with low acid usage, indicating economic viability.
  • Red Flags
    • Companies claiming ionic rare earths without metallurgical testing.
    • Announcing high recovery rates with strong acids, leading to impure rare earth products.
    • Lack of transparency about the purity of produced oxides.

Current Market Situation

  • Many companies that lacked solid projects have ceased operations due to market disinterest.
  • The drop in market interest presents a potential opportunity for future investment gains.

Conclusion and Next Steps

  • Future episodes will review specific junior rare earth exploration companies.
  • Encouragement for investors to request detailed information from companies.
  • Importance of understanding the economic potential and true value of rare earth deposits.

deposits red flags

You're right to focus on the specific impacts of these elements on rare earth elements (REEs) within hard rock deposits. Here's a breakdown of how each element affects REE extraction:

Aluminum (Al)

  • Interference with Leaching: Aluminum can form stable complexes with REEs in the leaching solution, making it harder for the REEs to dissolve and be extracted. This lowers the overall recovery rates.
  • Precipitation and Impurities: During precipitation, aluminum can precipitate out of the solution along with REEs, leading to impure rare earth oxide products.

Iron (Fe)

  • Complex Formation: Like aluminum, iron can also form complexes with REEs, hindering their dissolution and extraction.
  • Redox Reactions: Iron can undergo redox reactions during the leaching process, potentially interfering with the desired chemical reactions and reducing REE recovery.
  • Impurities and Separation: Iron can precipitate out along with REEs, contaminating the final product and making separation more challenging.

Arsenic (As)

  • Toxic Contamination: Arsenic is a toxic element, and its presence in the final product can pose a serious environmental and health hazard. It must be removed during processing to meet regulatory standards.
  • Complex Formation: Arsenic can also form complexes with REEs, potentially hindering their extraction.
  • Environmental Issues: Arsenic can contaminate water sources and soil if not managed properly during mining and processing.

Silica (SiO2)

  • Reduced Solubility: Silica can react with REEs to form silicates, which are less soluble in the leaching solutions. This reduces the overall recovery rates.
  • Viscosity and Processing: Silica can increase the viscosity of the leaching solutions, making the process more challenging and requiring additional energy input.
  • Waste Management: Silica, as a major component of the waste rock, needs to be managed properly to avoid environmental issues.

Summary

In summary, these elements can significantly impact the extraction of REEs from hard rock deposits:

  • Reduced Recovery: They can hinder the dissolution and extraction of REEs, lowering the overall recovery rates.
  • Impure Products: They can co-precipitate with REEs, contaminating the final product and reducing its value.
  • Environmental Issues: Arsenic poses a significant environmental and health hazard, requiring careful management.
  • Increased Costs: Their presence can increase processing costs and complexity, requiring specialized techniques and potentially lowering profitability.

Remember, the specific impact of these elements depends on the concentration, mineralogy, and processing techniques employed. Careful assessment of the deposit and development of suitable processing technologies are essential for efficient and environmentally responsible extraction of REEs from hard rock deposits.

Do you have any other questions about specific elements, their impacts, or processing techniques?

Action Items

  • For Investors: Look for disclosure of TREO minus Ce in company reports.
  • For Companies: Consider reporting TREO minus Ce to attract serious investors.

Community Engagement

  • Viewers are encouraged to suggest companies for future reviews and to engage with the content by liking and subscribing.