Red Metal excites with low-cost REE processing outlook at Sybella

• Red Metal receives results of bottle roll pH optimisation leach test on Sybella aircore and RC percussion drill chip samples
• Leach data strongly supports the strategy of applying heap leach processing to extract the MREO from the weathered granite ores of the Kary Zone
• The results pave the way for column leach test work to begin

Special report: Red Metal has enhanced the low-cost processing potential of its Sybella rare earth discovery in QLD through pH-optimised bottle roll leach tests on aircore and RC samples from the eastern Kary Zone.

At PH 2.0 a large portion of the weathered Kary Zone achieved favourable magnet rare earth oxide (MREO) leach extractions including:

• Neodymium extractions ranging 76-81%;
• Praseodymium extractions ranging 76-81%;
• Terbium extractions averaging 43-60%;
• Dysprosium extractions averaging 38-55%
• A low sulphuric acid consumption ranging 17-22 kg H2SO4 /tonne;
• Low aluminium impurity extractions ranging 3-6%; and
• Very low iron impurity extractions ranging 1-2%.

Beyond improving previous data, Red Metal (ASX:RDM) believes the results validate a low-pH acid leaching process and a simple in-heap approach to iron impurity removal.

The study has also demonstrated that neutralising the pH of the leach liquor with time leads to the precipitation of iron oxides and a step-change reduction in iron impurities.

RDM says the results to date are subject to confirmation by column leach test work but point to the opportunity to further maximise leach outcomes by adjusting the acid strength over the heap’s life.

Background on Sybella

Sybella is a unique granite hosted source of rare earths, sitting just 20km from Mt Isa, with a current inferred resource of 4.8Bt at 302ppm NdPr and 28DyTb.

Early-stage drilling, metallurgical and comminution studies have indicated that a low-cost, low-capital, heap leach processing option may prove feasible with the company having already succeeding in producing a mixed REE concentrate with 48.7% total rare earth oxide. MREOs make up 39.5% of this product.

MREOs are valued for their use in producing permanent rare earth magnets found in electric vehicle traction motors, wind power generators, automotive micromotors, sensors and speakers.

Adamas Intelligence forecasted in its recent Rare Earth Magnet Market Outlook to 2040 annual report that from 2024 through to 2040, global demand for neodymium magnets will increase at a compound annual growth rate (CAGR) of 8.7%.

Column leach test work to begin

RDM managing director Rob Rutherford said the optimised leach tests on the Sybella ore samples have shown the company can achieve strong rare earths extractions at weaker acid strengths than was previously indicated.

“Importantly, our research has shown that the leach liquor from which the MREO product will be derived has the potential to be naturally cleansed of iron impurities while in the heap which should significantly reduce the down-stream processing cost that relates to purification and mixed rare earth carbonate production,” he said.

“We now look forward to starting the column leach test work in the coming months to provide definitive data on crushed rock that better simulates a heap leach setting.”

Additional bottle roll tests on the Templeton Zone and RDM’s first column leach tests on the weathered Kary Zones ores are planned to get underway next month.

The pending column leach test results will provide more definitive leach data for early-stage mine scoping studies.

This article was developed in collaboration with Red Metal, 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.