The rare earths necessary for the manufacturing of the magnets needed for the type of electric motors that can drive electric cars fall into two categories, the basic critical permanent magnet rare earths, neodymium (Nd) and praseodymium (Pr), and the critical, critical rare earths necessary for that purpose, dysprosium (Dy) and terbium (Tb). Without the addition of Dy and/or Tb to the alloy based on NdPr (a natural mixture called didymium) the magnetic material produced will not be able to maintain its (magnetic) strength at the high operating temperature and cycles of heating and cooling experienced daily by the electric drive motors to be used in EVs.

Unfortunately, while rare earth bearing deposits with NdPr contents of 16% to 25% of the total of rare earths contained are fairly well known, such deposits do not contain more than a “trace” of Dy and Tb. Dy and Tb, therefore, were laboratory curiosities until almost the end of the twentieth century when large areas of the formations known now as ionic adsorption clays were discovered in southern China’s Jiangxi Province. These, at or near, surface formations are the result of the natural weathering (dissolution) of rare earth bearing granites by tropical (warm) rains, creating, after a few hundred thousand centuries, “deposits” of porous clays in which the rare earths have been chromatographed (partially separated) by atomic number.

The lower atomic numbered rare earths such as cerium and lanthanum are barely present in these clays. They do have substantial distributions though of the basic critical magnet rare earths, Nd and Pr, and surprisingly and luckily, the highest relative concentrations of the higher atomic numbered rare earths, such as Dy and Tb, known anywhere. In addition, the rare earth elements are “adsorbed” on the clay particles; not chemically bound, so that they can be extracted from the clays by a simple wash of the common agricultural chemical, ammonium sulfate in water solution.

The clays in China are processed “in situ,” i.e, in place, by pumping an ammonium sulphate solution through the clay and then collecting the solutions in downstream plastic tanks where the rare earths are then precipitated as water insoluble carbonates or oxalates for transport to a processing plant where they are separated from each other and ultimately become part of alloys that can be magnetized and can maintain their magnetization at high temperatures. These ionic clay formations containing, in China, perhaps 300-1000 ppm of rare earths were the only commercial sources known for the heavy rare earths until quite recently when similar deposits in southeastern Asia in line with those in China were discovered.

In particular, Myanmar, formerly known as Burma, has significant ionic adsorption clays bearing rare earths. But China has acquired the rights to all of those that are being mined in Myanmar today, perhaps to exhaustion, with the output going exclusively to China. So too, with the ionic adsorption clay deposit known as Serra Verde in Brazil. This is a very good clay deposit, and it is scheduled to produce 2000 tpa of NdPr and 200 tpa of DyTb annually. But like Myanmar, all of this material will go to China.

Enter now, Appia Rare Earths & Uranium Corp. (CSE: API | OTCQX: APAAF), and its PCH discovery in Brazil. This looks to be a true ionic adsorption clay with, perhaps, the highest known total adsorbed rare earths concentration, so far discovered, of all or the majority ionic adsorption clay on this planet. The juniors have now descended upon Brazil, and announcements of deposits of “heavy rare earths sourced from ionic adsorption clays” are the flavor of the month. I still think we may be looking, in the case of Appia’s PCH deposit at the best ionic adsorption clay deposit in the Americas in the sense that it can be easily extracted with legacy in situ processing. It is a key discovery that, if properly developed, will benefit greatly the EV industries of North America and Europe. There are few sure things in life, I admit, but this is likely to be one of them. 

For those who want to argue that the Appia deposit is a mix of adsorbed rare earths and microcrystalline (chemically, covalently, bound rare earths) I will counter that it is the total cost of extracting the critical rare earths and the efficiency of that extraction that matters. Some of the “ionic clay” deposits require an acid leach after the aqueous leach to extract sufficient magnet rare earths; some of the “deposits” are simply too low a grade or the mix of magnet and non-magnet rare earths is skewed in favor of non-magnet rare earths. From the data that Appia has published, I believe that PCH is a major, economic, deposit with a very high recoverable grade of heavy magnet rare earths, and as such it is a key deposit for the re-development of a non-Chinese rare earth permanent magnet industry.

In an exclusive onsite interview from the Alces Lake Project in Northern Saskatchewan, Stephen Burega, the President of  Appia Rare Earths & Uranium Corp. (CSE: API | OTCQX: APAAF), engages with Tracy Weslosky of InvestorIntel to share insights on the progress of the company’s drilling program. Burega praises the team’s efficiency and the advances made during his inaugural visit to the site, providing Weslosky and her audience with an up-close view of the operations.

He underscores the effective utilization of the budget, revealing that they have successfully completed one-third of the project and are strategically directing their efforts towards uncovering new targets. The interview includes a special appearance by Appia Project Geologist, Kahlen Branning, who offers viewers a glimpse into a core shed and elaborates on the critical minerals present in the samples, namely terbium, neodymium, and dysprosium.

Further into the discussion, Burega outlines the instrumental role of helicopters in the movement of drilling equipment, underscoring the operation’s logistical ingenuity. The conversation concludes on an optimistic note as Burega shares the promising future of the Alces Lake project and its potential in rare earth extraction.

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About Appia Rare Earths & Uranium Corp.

Appia is a publicly traded Canadian company in the rare earth element and uranium sectors. The Company is currently focusing on delineating high-grade critical rare earth elements and gallium on the Alces Lake property, as well as exploring for high-grade uranium in the prolific Athabasca Basin on its Otherside, Loranger, North Wollaston, and Eastside properties. The Company holds the surface rights to exploration for 113,837.15 hectares (281,297.72 acres) in Saskatchewan. The Company also has a 100% interest in 13,008 hectares (32,143 acres), with rare earth element and uranium deposits over five mineralized zones in the Elliot Lake Camp, Ontario. Lastly, the Company holds the right to acquire up to a 70% interest in the PCH Project which is 17,551.07 ha. in size and located within the Goiás State of Brazil. (See June 9^th, 2023 Press Release – Click Here)

To learn more about Appia Rare Earths & Uranium Corp., click here

Disclaimer: Appia Rare Earths & Uranium Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Appia Rare Earths & Uranium Corp. (CSE: API | OTCQX: APAAF) (“Appia”) now has 4 rare earths/uranium projects globally. Today we take a look at Appia’s newly acquired PCH Project (agreement to acquire 70%) in Brazil and give an update on Appia’s Alces Lake rare earths Project in Northern Saskatchewan, Canada.

PCH Project (Brazil)

Appia announced in June 2023 that they had signed a Definitive Agreement to acquire up to a 70% interest in the PCH Project (subject to certain conditions). The PCH Project is 17,551 hectares in size and located within the Goiás State of Brazil. It is located ~30 km from Iporá, a medium size city of ~31,500 population, where infrastructure is well developed.

Sampling data shows enrichment in rare earth minerals from between 8 meters and 20 meters depth in ionic clay ore. Ionic adsorption clays are the main source of the critical rare earth permanent magnet metals, dysprosium and terbium. These projects are also rare outside of China.

Appia states:

“The positive results of the recent geochemical exploration work carried out to date indicates the potential for REEs and Niobium within lateritic ionic adsorption clays.“

Appia also states:

“Total REE grades in numerous auger holes drilled range up to 16,648 ppm (1.66%), with an average of 1,291 ppm total REE and importantly, the valuable rare earths used in magnet applications (Pr, Nd, Tb and Dy) + Y account for approximately 14% of total rare earths, with a maximum of 28.4%.“

The higher the valuable rare earths percentage the better. Appia state above 14% and in their latest presentation they state it as “an average value of 16.67%.“

This is a reasonable figure, especially when considering the shallow depth and the lower mining costs in Brazil. The deposit could potentially be mined with low-cost open pit mining techniques and processed using simple technologies.

Other key points of the PCH Project according to Appia are:

• “One of a few major ionic clay projects in the western world
• Easy to mine
• Simple processing
• Low radioactivity
• Low CapEx
• Low OpEx
• Environmentally friendly processing
• Near infrastructure
• Mining friendly jurisdiction
• Heavy and light critical rare earth.”

The PCH (ionic clay rare earths) Project in Brazil (Appia has an agreement to acquire 70%)

Source: Appia company presentation – June 2023

An update at Alces Lakes – Discovery of the new high-priority surface showing called the ‘Jesse Zone’

On June 22 Appia announced the completion of a NI43-101 Technical Report for their 100% owned Alces Lake Rare Earth Project in the Athabasca Basin, Saskatchewan, Canada. The Project is best known for having one of the highest rare earths grades (16.65 wt% TREO) globally of any project as well as being found in monazite ore which is amenable to processing.

Appia also gave a June 16 update on the Project stating:

“Early successes by our prospecting teams have led to the identification of a new high-priority surface showing called the ‘Jesse Zone’ which was discovered on the first day of field prospecting,” stated Stephen Burega, President. “The prospecting team have now identified anomalies along the regional shear zone with biotite-rich pegmatite showings of up to 21,000 cps (counts per second) and the zone appears to be +85m in strike length and +20 m in width at surface.”

The Jesse Zone is giving high scintillometer readings (measured in counts per second) which are a good pointer towards the monazite rich zones that hold the rare earth mineralization. The Appia team believes that the numerous surface showings may be connected under overburden. Detailed mapping and sampling continues at the Jesse Zone to confirm the full extent of this new zone.

Appia’s four projects description summary – Alces Lakes (Saskatchewan, Canada), Elliot Lake (Ontario, Canada), Loranger (Saskatchewan, Canada), and now the PCH Project (Brazil)

Source: Appia company presentation – June 2023

Closing remarks

Appia has now grown to own (including the 70% agreement to acquire the PCH Project) four significant rare earths/uranium projects globally. The very high grade Alces Lakes continues to be the flagship but now the new Brazil Project adds further to their portfolio. It also gives Appia a chance to significantly accelerate towards being a global rare earths producer at some point in the future.

Appia Rare Earths & Uranium trades on a market cap of only C$20 million.

In this InvestorIntel interview, Byron W King talks with Appia Rare Earths & Uranium Corp.’s (CSE: API | OTCQX: APAAF) President Stephen Burega about the completion of due diligence to acquire a rare earths ionic clay project in Brazil. Situated in a mining-friendly jurisdiction, accessible by road, with several mining operations nearby, Stephen says that the project’s mineralogy is similar to that of Serra Verde which has one of the largest ionic clay deposits outside of China.

Highlighting the expertise of their consulting geologist, Don Hains, who wrote the NI 43-101 report for Serra Verde, Stephen discusses how a positive evaluation from Don reinforced their excitement and confidence in the project.

Stephen also provides an update on Appia’s flagship Alces Lake Rare Earths (REE) Property in Northern Saskatchewan where they have a work program scheduled to start in June on the highest-priority areas of a major structural corridor.

Stephen also indicates that the Company has approximately C$7 million in the bank with C$3 million dedicated to the Alces Lake project and C$1 million earmarked for the Brazil project once the due diligence is completed.

To access the full InvestorIntel interview, click here

Don’t miss other InvestorIntel interviews. Subscribe to the InvestorIntel YouTube channel by clicking here

About Appia Rare Earths & Uranium Corp.

Appia is a publicly traded Canadian company in the rare earth element and uranium sectors. The Company is currently focusing on delineating high-grade critical rare earth elements and gallium on the Alces Lake property, as well as exploring for high-grade uranium in the prolific Athabasca Basin on its Loranger, North Wollaston, Eastside, and Otherside properties. The Company holds the surface rights to exploration for 113,837.15 hectares (281,297.72 acres) in Saskatchewan. The Company also has a 100% interest in approximately 12,545 hectares (31,000 acres), with rare earth element and uranium deposits over five mineralized zones in the Elliot Lake Camp, Ontario.

To learn more about Appia Rare Earths & Uranium Corp., click here

Disclaimer: Appia Rare Earths & Uranium Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In this video, InvestorIntel panelists rare earths experts Jack Lifton, Tracy Weslosky and Christopher Ecclestone express their skepticism at a report released yesterday that alleges a co-ordinated social media campaign out of China targeted the Australian rare earths mining company, Lynas Rare Earths Ltd. (ASX: LYC), with tweets and Facebook posts criticizing its alleged environmental record and calling for protests of its planned rare earths processing facility in Texas.

While the story has been picked up by mainstream and industry media, a deeper dive makes it look increasingly unlikely that this “campaign” was, as claimed, part of a Chinese effort to undermine foreign attempts to develop a rare earths processing capability outside of China and maintain China’s current dominance. While China makes a good James Bond villain in western politics and the popular press, a look at the evidence doesn’t necessarily point in their direction as the main movers in this case. For people familiar with online campaigns, this one attributed to China’s influence campaign known as DRAGONBRIDGE seems particularly weak and unfocused. The campaign and its associated hashtags never trended on Twitter, which is unfortunately all too easy to do with modern botfarms and technology.

Some tweets came out of China or were posted in Chinese, but that doesn’t a conspiracy make. A look at the tweets indicates some of them came from newly-created, zero-follower accounts, which is not the way to get something trending. China has much greater cyberwarfare capabilities than shown in this example. If anything, it is more reminiscent of anti-mining environmental activist campaigns that are a part of life for many mining companies. These can be co-ordinated by small but dedicated groups of activists unhappy with a company’s environmental or human rights records, real or perceived. In order to rise above the noise of social media, they often use multiple accounts and contacts with other groups to look larger than they are to increase their influence. The brief online campaign against Lynas – especially tweets from Malaysia where Lynas has a rare earths plant – looks far more like that than it does a co-ordinated attack by the Chinese cybersecurity forces.

Could the Chinese government have paid brief attention and contributed a few gratuitous kicks to a social media campaign that gave Lynas a poke? Possibly. We know that for years Russia has waged a disruptive social media war in the US and other western countries simply to make trouble, often working both sides of an issue to cause instability. The media has breathlessly connected the dots between China and the recent announcement that the US Department of Defense is increasing funding of Lynas’s rare earths facility in Texas. It is hard to believe that the Chinese cyberwarfare establishment thinks that they can undo $120 million in strategic funding by the DoD with a few tweets.

The Mandiant report also says that in June Chinese DRAGONBRIDGE social media accounts began targeting two other rare earths companies – the Canadian rare earths mining company Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF) a company well known to InvestorIntel, and the American rare earths supplier USA Rare Earth LLC. One has to wonder about the thinking behind choosing these targets if this is a co-ordinated campaign. Attacking them is hardly going to ensure Chinese dominance in the rare earths space, which makes the whole Chinese conspiracy theory fall apart.

“Cui bono?” – Who benefits? That was the question Roman judge Lucius Cassius asked in difficult cases. The benefit to China is negligible to non-existent. The West will continue to search for domestic rare earths and develop processing facilities. Will some company, analyst or investor group benefit from an attempt at bad press or stock slippage? Or is it a social media campaign by a handful unhappy activists groups that jump on an anti-mining bandwagon that ultimately goes nowhere, even with a couple of half-hearted contributions from China?

And unless you think that I am naïve, I worked on Chinese projects with Chinese partners for over a decade. China has – to say the least – a unique way of doing business. We have seen them attempt to exert influence to gain economic advantage around the world, however I have seen Connecticut hedge funds do the same and worse. But these kinds of campaigns out of China – like the brutal one to release Meng Wanzhou, the CFO for Chinese telecom giant Huawei, that included taking Canadian hostages in addition to a social media campaign – are waged skillfully and with a purpose. It is hard to see any of that skill or purpose in this case.

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness.”

Apologies to the ghost of Charles Dickens for borrowing the first line from his 1859 historical novel, A Tale of Two Cities. It’s about the French Revolution, but that same sentiment pertains to our current era, and certainly how stock markets reflect (or mis-reflect) the economy.

Dickens highlighted political and social contrasts and contradictions. Sophisticated London versus revolutionary Paris. Plus, how science and reason were gaining traction across the world, while in another human dimension passion and bloody craziness were the rule.

Dickens and his Two Cities cross my mind every year around this time, in late November and the first couple of weeks of December. Predictable as phases of the moon, there’s always an annual market sell-down known as “tax loss selling season.”

We definitely see this phenomenon in mining shares, and if you’ve been around for even a short while you know the drill.

Towards the end of the year many investors, funds, etc. sell mining shares that have done well, to book gains in the winners. Then they sell shares in different companies to book losses. The idea is to rebalance portfolios, take money off the table and absorb losses as a tax shelter.

You want contrasts and contradictions? The best of times and worst of times? Voila!

On the one hand, a long list of wonderful companies bleeds red on the screen, based on share price declines. Ugh, you think. What a takedown.

Yet if you follow many of these declining plays, the back-stories have never been better. Great assets, experienced and savvy technical teams, strong management, money in the bank. Yet people are hitting the sell-button and share prices are sliding.

Well, there’s another way to look at it too. If you follow the right kinds of companies and know the stories – assets, capabilities, management – you can find bargain basement plays.

The idea is to shop now and pick up discounted shares. Then ride the gains that typically come with the new year, aka the “January effect.”

For example, look at a large, well-run company like Agnico Eagle Mines Limited (NYSE: AEM | TSX: AEM), with a market cap of $11.8 billion. It’s a solid gold mining play for any long-term investor. The company has no serious problems in any news.

Yet in just the past month the Agnico share price has slipped from over $57 to the $47 range. That’s definitely not reflective of the company, its assets or people. It’s just sellers taking money off the table towards the end of 2021. Yet by about March 2022 that $10 down-move will more than likely be fully restored and then some.

Agnico is a buy just now.

Or look at a much smaller company like Group Ten Metals Inc. (TSX.V: PGE | OTCQB: PGEZF), an early-stage explorer with a market cap of a mere $45 million. It controls a vast spread of mineral claims in the legendary Stillwater district of Montana, adjacent to mighty Sibanye-Stillwater Ltd. (NYSE: SBSW), with a market cap of $8.9 billion.

Group Ten has identified significant nickel, copper and platinum group metals (including rhodium), along with cobalt, chrome and gold. The company just released a very solid resource estimate, with one version summing up to over 6 million ounces of “palladium equivalent,” leading to a nice uptick in share price back in October.

Yet in the past month, Group Ten shares have drifted down by about 25%. And that’s despite the fact that almost none of the drilling results from the 2021 field season have yet been reported. The company expects to release additional mineralogical (good) news in January and February, which will likely strengthen the share price.

Another buy. W company with great assets, a strong technical and management team, money in the bank, and phenomenal location in mining-friendly Montana, smack next to a multibillion-dollar giant. And just now, in early December, the shares are on discount.

Or how about two other, underappreciated rare earth (RE, REEs, Rare Earths, Critical Material) companies, currently in similar sell-down territory, namely Defense Metals Corp. (TSXV: DEFN | OTCQB: DFMTF) and Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF).

Defense Metals is working on a large project in British Columbia involving a rock type called “carbonatite,” which in this case is filled with high grade RE mineralization. After three field seasons (2019 – 2021), Defense has a good handle on the deposit. Management just released a splendid preliminary economic analysis that shows excellent numbers in terms of tonnes/grade, value, return on investment, etc.

Yet shares are down about 25% in the past month, while the company has yet to release results from the 2021 drilling program. If you follow the RE space, here’s a bargain buy.

And Appia is working on another, very extensive RE deposit in northern Saskatchewan. It’s based on a mineral called “monazite,” in high demand across the world for rare earth minerals.

Indeed, Appia’s deposit may be among the highest-grade monazite plays anywhere, certainly in North America and competitive with the best plays elsewhere in the world. The ore body is near-surface as well, which simplifies the mining angle. And the company has an arrangement with uranium processors in Saskatchewan to deal with any issues of radionuclides in the ore.

Yet despite this setup, shares are down over 40% in recent weeks. Another bargain play, now on sale at year end.

With all the companies above, from big Agnico to much smaller Group Ten, Defense Metals and Appia Rare Earths and Uranium, we are looking at temporary, seasonal selloffs. For long-term investors, the shares are a bargain. Even for traders who are looking to buy now and sell into the new year, it’s a setup for a gain.

In other words, we have a relatively short window in early December to buy into any number of beaten-down plays. Or to turn Charles Dickens around and take a more upbeat view of the opportunity which is right in front of you, “It is the worst of times, yet also the best of times.”

That’s all for now…  Thank you for reading.