Search and rare earths shall be found – Maybe in them HighREE Hills
Search Minerals Inc. (TSXV: SMY), had their stock go up 42.86% in April, and on May 12th they announced funding totalling C$50,000 from the Atlantic Canada Opportunities Agency to do a conceptual study of their proposed rare earth processing facility at their Foxtrot Project in Labrador. And as of the week ending May 15th, their stock was up 100% on the week before.
On May 20th Search had other news, regarding a $100, 000 cash payment from InCoR Technologies Ltd, for it’s proprietary Starved Acid Leaching Technology (SALT). SALT extracts nickel from below cut-off grade nickel saprolite ores. It isn’t used for rare earth recovery and is not part of the current process development at Foxtrot.
Search has properties with numerous deposits near the Labrador coast, and they are still finding more. A processing facility on the coast, that would be accessible by boat would be a major asset. They have properties near the coast like the Port Hope Simpson Rare Earth Element (REE) District. This is a REE belt where the company controls a dominant land position in a belt 70km long and up to 8km wide. Also on the coast is their Henley Harbour property just to the south.
Within the Port Hope Simpson deposit is the Foxtrot Project, their flagship enterprise. Their open pit mine there, will be the source of the material to be processed. Search owns 100% of the Foxtrot Project, and a recently announced Foxtrot-like prospect called Deepwater Fox, which may be three times the size. Foxtrot is in the Fox Harbour Volcanic Belt where they have 20 licenses, and 732 claims. Search has some great names for their properties and projects like Foxy Lady, Fox Pond, the Red Wine Complex, and HighREE Hills. Yes HighREE Hills is a place, that’s not a typo.
Highlights from their March report
- Three new prospective belts for critical rare earths (CRE’s- neodymium, europium, terbium, yttrium, and the critical magnetic metals everyone is looking for: dysprosium (Dy), and especially the Dy203 form), have been discovered in the Henley Harbour CRE District, SE Labrador;
- Best channel results Bad Bay – Iceberg: 3.55m of 280 ppm Dy (322 ppm Dy2O3) including 0.60m of 506 ppm Dy (582 ppm Dy2O3); Pleasure Pond: 0.18m of 904 Dy (1040 ppm Dy2O3);
- High grades are found in each belt: 1. Bad Bay – Iceberg reveals Dy values up to 506 ppm (Dy203 up to 582 ppm); 2. St. Peter’s Bay reveals Dy values up to 1290 ppm (Dy203 up to 1484 ppm); and, 3. Pleasure Pond reveals Dy values up to 3400 ppm (Dy2O3 up to 3910 ppm); and,
- Each belt exhibits characteristics similar to the HighREE Hills and Ocean View belts found 30 – 40 km to the north in the Port Hope Simpson CRE District, where the Foxtrot Project is located.
Search will use engineering company SNC- Lavalin (SNC) to complete the study on the processing plant. They will rely on Search VP of Metallurgy Dr. David Dreisinger, and other management to facilitate and monitor the report. Greg Andrews, Search President, said the “study should validate that the breakthrough in Search’s proprietary metallurgy process, which eliminates grinding, flotation, gravity and magnetic separation, will significantly reduce capital and operating costs to develop Foxtrot. We will incorporate this new information to update the May 2013 Preliminary Economic Assessment of Foxtrot.” Remarkably Search has identified more than 20 other Foxtrot-like prospects in the District. It would seem that this region could have many REE deposits, and the plans to refine both the heavy and light REE’s in Labrador could put this region, accessible by both air and sea on the map.
Dr. Dreisenger spoke about their direct extraction method with publisher Tracy Weslosky in a video interview with InvestorIntel March 30th 2015. This novel method of extraction could lower the costs of both mining and refining. This could allow Search to be one of, if not the first to produce REE’s in Canada.
SNC will prepare and design the processing facility with an initial production rate of 500t/day from the open pit mine at Foxtrot. The processing facility will be scalable in the event Search can obtain additional feed from other prospects discovered in the districts. The Project began in February 2015, and the report is estimated to be released near the end of May 2015.