Godolphin produces second, cleaner mixed rare earth carbonate at Narraburra

Phase 3 metallurgical testwork successfully produces MREC-2
The product was made using an additional ion exchange step
MREC-1 and MREC-2 provide GRL with the ability to begin discussions with offtake partners

Special report: Lachlan Fold Belt explorer Godolphin Resources has racked up another development milestone at the Narraburra project following the production of a second mixed-rare earth carbonate.

In collaboration with the Australian Nuclear Science and Technology Organisation (ANSTO), Godolphin Resources’ (ASX:GRL) third phase of metallurgical test work used an additional ion exchange (IX) step in the process, which yielded less impurities than the previous sample (MREC-1) by removing 98% of uranium from the purified leach solution.

That reduced the total uranium content to 7ppm in MREC-2 with negligible magnet rare earth oxide (MREO) and total rare earth oxide (TREO) losses.

The second test also achieved high-stage recoveries of 99.6% neodymium, 99% praseodymium, 99% dysprosium and 99% terbium, which when coupled with strong REO extractions achieved during leaching, and only moderate losses during IR and IX, resulted in a high REO recovery from ore feed through to the final MREC product.

When the current prices of all the REOs are considered, the dysprosium and terbium in MREC-2 makes up roughly 49.5% of the value of the TREOs, which should result in higher payability based on industry pricing mechanisms.

The heavy rare earth products are doubly valuable because of China’s near total dominance in the supply of terbium and dysprosium.

That means developing any western source will become a strategic imperative in places like Australia.

‘Superior product’

The Phase 3 test work was designed to provide the required level of understanding of a mineral processing flow sheet for the project, as well as provide initial cost estimates to be used in a scoping study, while enabling the company to start discussions with potential offtake partners.

GRL believes both of its products contain lower impurities than products from most other clay-hosted REE projects, with the quality of MREC-2 highlighting the company’s ability to create a saleable product that sets the stock apart from competitors’ offerings.

“We’re very pleased to have successfully produced a significantly cleaner product following the inclusion of a commonly used ion exchange step into the process flowsheet,” GRL managing director Jeneta Owens said.

“Pleasingly, this removed 98% of the uranium content with minimal REE loss and leaves the company well placed with two samples to underpin discussions with offtake partners.

“More broadly, results from the MREC precipitation phase continue to highlight the potential for a high-quality, potentially superior product, which can be produced by processing Narraburra’s REE mineralisation,” she said.

Scoping study on pause

GRL has made the strategic decision to pause completion of the Narraburra scoping study at the conclusion of the third phase of metallurgical testwork, until REE pricing improves.

Discussions with potential offtake partners will progress, allowing GRL to divert funds to its ongoing drill program at the Lewis Ponds asset which is delivering impressive results.

Scope of Narraburra could get bigger

During the quarter, an airborne electromagnetic survey demonstrated the potential to significantly expand Narraburra’s existing 94Mt resource at 739ppm TREO, made up of 47.6Mt at 780ppm TREO indicated and 47.4Mt at 680ppm TREO inferred.

It includes a higher-grade component of 20Mt at 1079ppm TREO.

Results highlighted that the clay hosting rare earth element mineralisation at Narraburra is associated with an extensive conductivity anomaly.

The conductivity anomaly resulting from the clay basin hosting the REE mineralisation, close to the existing mineralisation, shows a prospective >1.5km zone to the west as a high priority target.

It also extends to the north and south of the deposit over a strike length of 25km and is up to 4km wide, coincident with A-Type Granites interpreted to be the source of the project’s clay-hosted REE mineralisation.

Delineation of this large and highly prospective zone featuring the same geological setting that caused the formation of the Narraburra Deposit is highly encouraging and will underpin future mineral resource extension and exploration activities at a later stage.

This article was developed in collaboration with Godolphin Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.