Texas Rare Earth Resources Test Results Indicate Potentially Significant Economic Recoveries of Industrial Minerals
- Total Revenue Potential of Industrial Minerals May Exceed that of Rare Earths
- Industrial Minerals Potentially Readily Saleable Worldwide Utilizing Existing Infrastructure
Texas Rare Earth Resources Corp. (TRER), an exploration company targeting the heavy rare earths, reports that recent metallurgical analyses indicate there is the potential to economically recover significant amounts of industrial minerals. These minerals are contained in the primary leach solution (PLS) that we expect to produce from the rhyolite we mine from the Company’s Round Top deposit in southwestern Texas.
Initial column leach tests of the Round Top ore, which formed the basis for the Company’s 2013 Preliminary Economic Assessment (PEA), were conducted by RDI Inc. in Denver. This work successfully demonstrated the efficient recovery of the rare earth elements by leaching crushed rhyolite ore with dilute sulfuric acid. In addition to the rare earth elements, a variety of other elements were leached from the source rock. Our primary objective had been to develop an economically feasible method of recovering the rare earth elements from the primary leach solution in order to produce a feedstock acceptable for a separation plant.
We have pursued rare earth separation by assessing the viability of K-Technologies’ continuous ion exchange/ continuous ion chromatography (CIX/CIC) technology. We are now addressing the potential of the other elements that are present in the primary leach solution. Sulfates of aluminum are widely marketed as a water treatment agent and sulfates of iron, magnesium and potassium are commonly used fertilizer products. Internal analysis of data from the 2013 column leach tests indicates that if these four elements were recovered, they would potentially produce the following tonnages per year in the envisioned 20,000 tonnes per day operation at Round Top:
|Mineral||Potential Annual Recovery (Metric Tons)||Current Price Per Ton*|
|Aluminum Sulfate||182,000 MT||$150-220|
|Ferrous Sulfate||71,000 MT||$80-100|
|Magnesium Sulfate||44,000 MT||$75-130|
|Potassium Sulfate||33,000 MT||$700-735|
*Open source pricing for commercial quantities- December 2015
In addition to the industrial minerals mentioned above, TRER has reported, in prior press releases, the following potentially recoverable quantities of other byproducts:
|Mineral||Potential Annual Recovery||Current Pricing|
|Uranium (U) oxide||307,000 lbs.||$36.00 lb.**|
|Scandium (Sc) oxide||5,400 kgs.||$1,600- 2000 kg. ***|
|Lithium (Li) carbonate||9,000 tons||$6,000 ton****|
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** UxC December 2015 Spot Price. In April 2015, TRER signed a uranium offtake agreement with UG USA Inc., a subsidiary of AREVA
*** Confidential discussions with large industrial users
**** September 2015 price. FMC recently announced a 15% price increase beginning January 2016
“While the production of heavy rare earths continues to be the primary objective at Round Top, the deposit is truly multi-metallic,” said Dan Gorski, CEO. “As we complete our assessment of the total potential of the deposit, the numerous other elements potentially recovered in the leaching of this rock, rather than being a troublesome waste product stream to be neutralized and disposed, are proving to make a significant contribution to the potential revenue stream and serve to diversify and de-risk the sources of future revenue. Both the industrial minerals and byproducts which are potentially recoverable are typically readily marketable within the United States and around the world.”
About Texas Rare Earth Resources Corp.
Texas Rare Earth Resources Corp.’s primary focus is exploring and, if warranted, developing its Round Top rare earth minerals project located in Hudspeth County, Texas, 85 miles east of El Paso. The Company’s common stock trades on the OTCQX U.S. tier under the symbol “TRER.”
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding potential economic extraction of non-rare earth industrial minerals, potential development and production at Round Top, potential revenue streams from such production, anticipated production methods and results and other similar statements. When used in this press release, the words “potential,” “indicate,” “expect,” “intend,” “hopes,” “believe,” “may,” “will,” “if, “anticipate,” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, risks related to the development of the Round Top project, risks related to the company’s internal analysis of the potential extraction of non-rare earth industrial minerals, up-scaling of extraction testing, risks related to changes in future operating costs and working capital balance, risks related to mining results not matching preliminary tests and risks related to the ability of TRER to raise adequate working capital and continue as a going concern, as well as those factors discussed under the heading “Risk Factors” in the Company’s latest annual report on Form 10-K, as filed on November 30, 2015, and other documents filed with the U.S. Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.
Cautionary Note to Investors
The potential extraction numbers contained in this press release are based upon the Company’s internal review of 2013 column leach tests and applying the Company’s model for a 20,000 ton per day mine, as contemplated by the Company’s most recent technical reports for the extraction of rare earth at the Round Top project. These estimates are preliminary in nature and are not based upon a feasibility study and do not represent SEC Industry Guide 7 compliant reserves. The estimates of extraction of minerals contained in this press release are based upon the following material assumptions: 1. Leach recoveries of these elements in an actual leach dump will be similar to those seen in the column leach tests. 2. Existing water purification and desalinization technology can be employed to extract these products from the primary leach solution. Investors should not assume that mining results will match preliminary testing or that a Guide 7 compliant reserve will ever be established.
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