Medallion Resources Ltd (CVE:MDL) (OTCPK:MLLOF) has said its US rare earth elements (REE) supply business strategy has been reinforced by the current coronavirus pandemic.
"This is an exciting and pivotal time to take on the role of CEO at Medallion Resources, and I appreciate the opportunity provided by the board," said newly-appointed boss, Mark Saxon in an update about the company's plans.
READ: Medallion Resources appoints new president and CEO as Don Lay transitions to a strategic advisor role
"The momentum in the US for secure domestic REE supply to support industry and defense is now stronger than ever. The Medallion strategy to extract REEs from readily available by-product feedstock, using a proprietary technology, places the company in an early mover position. As a new mine does not need to be built or permitted, Medallion can execute in a relatively short time frame with low capital requirements,” Saxton added.
Medallion is a long-term participant in the REE industry, the company noted, and certain raw materials are critical for America’s high-tech industries, including in defense, energy storage, and electric mobility. The group aims to produce REEs via processing monazite tailings using feedstock sourced from heavy minerals mining operations in the southeast of the US.
Being able to source essential industrial and critical raw materials in a time of crisis is a key test of the robustness of a national supply chain, the firm said.
"While the push to re-industrialize the United States has been a multi-year trend, the devastating impact of the pandemic is now rapidly accelerating this process, driven by both private and public interests," it added.
"The supply chains that underpin the strength of US defense, health services and industry are being reevaluated, with secure domestic access now prioritized alongside quality and cost considerations."
The company noted that while monazite is regularly found in primary REE deposits, it is found enriched within heavy-mineral sand deposits worldwide.
"At present, the monazite mineral concentrate that is produced from operating mines is stockpiled or sold to Chinese customers.
"By utilizing low-cost by-product monazite currently mined or stockpiled within the US with a proprietary flowsheet, Medallion is confident that a secure REE supply chain can be developed," the group concluded.
Shares slipped 12.5% to stand at C$0.10 in Toronto.
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