Medallion Resources Ltd (CVE:MDL) (OTCMKTS:MLLOF) updated on progress, saying it had started talks with engineering groups regarding a study to determine the capital and operating costs for its proposed rare-earth processing plant.
The Vancouver-based firm is focused on extracting rare earths from monazite, which is a byproduct of heavy mineral sands mining.
Unlike traditional rare earths mining, which can be laborious and expensive, Medallion is pioneering a process that extracts what is known as magnet metals, or more specifically neodymium and praseodymium (NdPr), from monazite.
Currently, the company has development work in progress at the Saskatchewan Research Council (SRC) and the Chemical Engineering & Applied Chemistry Department at the University of Toronto.
"These current projects will answer key questions about our waste stream and process optimization work and move us much closer to a formal economic study,” said Kurt Forrester, Medallion’s metallurgist.
“We are entering into discussions with engineering groups on a study to determine capital and operating costs for our proposed monazite rare-earth processing plant.”
At the SRC, researchers are analyzing waste streams produced from additional “crack and leach” testwork on monazite sand feedstock.
The findings and samples will then be shared with waste processors and disposal firms for review.
Meanwhile, Toronto’s Chemical Engineering & Applied Chemistry Department are generating data to establish precise thermodynamic models of the phosphate conversion and caustic regeneration projects.
Significant cost savings
The company expects the work to potentially provide significant cost savings during plant operations.
"The timing of this work coincides nicely with the market interest we’re seeing in rare-earth magnet metals and in our NdPr-rich concentrate,” noted Don Lay, president and CEO of Medallion on Wednesday.
"With our recent capital raise we can move more quickly to evaluate potential plant sites in North America and work with feedstock suppliers to ensure timing and quality of monazite feedstock."
Today, Medallion shares slipped 5% in Toronto to $0.095.
Contact Giles at [email protected]
Follow him on Twitter@Gile74