Analyst Comment Part 2 Tgt Price 30p (Less photos)8 Apr 2021 11:34
This pilot plant remains on site and is available to be recommissioned under the agreement. Various stages in the processing upgraded these concentrations to potentially economic levels of REEs, as a result of: [1] initial concentration by flotation at the Foskor plant [1] further concentration during the sulphuric acid leaching process (cracking) at Sasol's PhosAcid plant to produce phosphoric acid, at which stage, the REEs were solubilized [1] gypsum was formed during the phosphoric acid production, which was discharged to the stacks with the REEs. The project is fully permitted, with an Environmental Impact Assessment completed. Resource Phosphate rock, the raw material of phosphoric acid production, is known as a secondary source of low[1]grade REE. Low in-situ concentrations of REEs were contained within the original Foskor orebody. Initial grab sample assays from the c. 35 million tonnes Gypsum Stacks indicate 0.6% TREO, indicating c. 210,000 tonnes of contained TREOs, with Neodymium (Nd) and Praseodymium (Pr) (together "NdPr") anticipated to constitute c. 30% of the TREO basket. These gypsum stacks are enriched in REEs from the historic concentration of these elements during Foskor's flotation process, followed by further upgrading in Sasol's PhosAcid Plant, leading to REE concentration in chemical (rather than mineral) form, which enables simpler onward processing. Sasol developed a comprehensive process flowsheet to extract the Rare Earths from the gypsum, which resulted in a successful pilot plant operation, producing around three tonnes of mixed Rare Earth carbonate at around 80% recoveries.
The output of this plant was being sold to the Japanese end-users of REEs. Initial reports suggest low levels of radioactive elements, similar to those seen at Rainbow's Gakara Project, in Burudi An additional environmental benefit is that the re-processing of these Gypsum Stacks will redeposit clean, benign gypsum, which has the potential for further use in the building and fertiliser industries. Strategy Gakara remains a work in progress and we shall see over the next 12-months if it makes a meaningful contribution to global REE supplies. We are far more excited by Phalaborwa as here there is a potential game-changer with large volumes of pre-mined and pre-concentrated REEs just needing the crucial separation process. This activity is not theoretical as it was done before and found a ready market with the Japanese. We have added a LONG position in Rainbow the Model Resources Portfolio with a twelve-month target price of GBP0.30.
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