In a recent interview with Jack Lifton, Co-Chairman of the Critical Minerals Institute (CMI), Mark Chalmers, President, CEO and Director of Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) discussed the company’s pivotal role in North America’s rare earth production landscape. Lifton opened the conversation by highlighting the scarcity of rare earth producers in North America, noting that Energy Fuels Inc. and MP Materials Corp. (NYSE: MP) are the only two companies currently active in this space. Chalmers elaborated on Energy Fuels’ unique approach to this market, particularly its focus on monazite, a mineral essential for producing magnet rare earths.

Chalmers revealed Energy Fuels’ strategy for entering the rare earth permanent magnet supply chain. The company has already made significant strides in producing rare earths carbonate through its partnership with The Chemours Company (“Chemours”) (NYSE: CC), and plans to further this progress by initiating the separation of this carbonate into NdPr (Neodymium-Praseodymium) oxides at their White Mesa Mill by early 2024. Energy Fuels is actively expanding its source streams, including the acquisition of the Bahia Project in Brazil, with the aim of significantly scaling up production to meet the growing demand for rare earths in various industries, particularly automotive.

The conversation then shifted to the broader market dynamics and future outlook. Chalmers emphasized the need for integration in the rare earths industry to achieve economic viability. He pointed out that merely participating in a single step of the production process is insufficient. To be competitive, particularly against Chinese production models, companies must oversee the entire process from securing low-cost feeds to final product delivery. This integration, according to Chalmers, is key to Energy Fuels’ strategy, as it ensures each step contributes economically and leads to a more competitive and resilient business model.

Lifton acknowledged Chalmers’ unique expertise and the company’s strong position in a demand-driven industry. Chalmers responded by emphasizing Energy Fuels’ commitment to action over promotion, noting their progress in the rare earths strategy over the past three and a half years. This approach has not only been about advancing in the market but also about setting the right focus and leveraging expertise in strategic global locations.

One significant aspect of Energy Fuels’ strategy is its focus on monazite sands. Chalmers noted the advantages of monazite, such as its higher concentration of magnet rare earths compared to bastnaesite. He also addressed the challenges associated with monazite, primarily its natural radioactivity, which Energy Fuels is uniquely equipped to handle thanks to its licensed facility. This capability sets Energy Fuels apart, as it can safely process monazite while recovering valuable uranium.

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About Energy Fuels Inc.

Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (“REE“) materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America’s key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (“ISR“) Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development.

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This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

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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. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

In a recent engaging discussion with Brandon Colwell, President of the Critical Minerals Institute (CMI), Mark Chalmers, President, CEO and Director of Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), shed light on the company’s latest achievements and future strategies in the critical mineral supply chain, especially focusing on uranium, rare earth elements (rare earths), and vanadium.

Q3 Success and Contributing Factors

Chalmers highlighted Energy Fuels’ impressive net income of $10.47 million in Q3 2023. The success, he noted, stemmed from a mix of uranium and rare earth carbonate sales, complemented by non-cash adjustments, including investments and the valuation of the note with enCore Energy Corp. (NYSE American: EU | TSXV: EU). He emphasized the long-term benefits reaped from the sale of the Alta Mesa Project earlier in the year.

Strategic Financial Management and Growth Plans

When asked about the company’s financial strategies, Chalmers underscored the importance of maintaining a strong balance sheet. Fully funded for uranium and rare earth activities in the U.S., Energy Fuels is also exploring potential mergers and acquisitions in these sectors, aiming to diversify and strengthen its portfolio further.

Navigating the Uranium Market and Sales Strategy

Delving into the uranium market dynamics, Chalmers discussed how Energy Fuels capitalizes on its low-cost production capabilities. The company’s ability to maintain high margins is attributed to its efficient production methods and strategic inventory management. Chalmers also touched on the broader market trend of sourcing from the U.S. and allied countries, expecting this trend to continue as reliance on foreign sources decreases gradually.

Future Production and Expansion in Uranium Mining

Chalmers expressed optimism about the upcoming production expansions. Energy Fuels is preparing four mines, with the Pinyon Plain Mine expected to be one of the first to come online. This expansion is anticipated to sustain high margins and contribute significantly to company revenue, backed by long-term contracts and ongoing negotiations for more.

Advancements in Rare Earths Separation and Government Engagement

Chalmers also addressed the company’s progress in developing rare earth separation capabilities. Energy Fuels has independently funded most of its rare earth strategy, including the development of its White Mesa facility, expected to commence operations in Q1 2024. The company has been diversifying its monazite feed sources, including the acquisition of the Bahia Project in Brazil, and is in active discussions with the U.S. government and other potential stakeholders to further its position in the rare earth market. With a strong financial foundation, the company is well-poised for future growth and is actively contributing to the domestic production of critical minerals in the United States.

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About Energy Fuels Inc.

Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (“REE“) materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America’s key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (“ISR“) Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development.

To learn more about Energy Fuels Inc., click here

Disclaimer: Energy Fuels Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. 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. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

Lynas Rare Earths Ltd. (ASX: LYC), the Australian mining giant, recently breathed a sigh of relief. Malaysia’s government granted the firm a pivotal extension on their operating license, allowing them to continue importing and processing raw materials laden with naturally occurring radioactive elements until March 2026.

Previously, Malaysia had stringent reservations due to radiation concerns stemming from the cracking and leaching procedures in processing these materials. The facility in Pahang, Malaysia, has been mired in controversies surrounding radioactive waste, specifically thorium, since 2012. Malaysia had gone to the extent of instructing Lynas to shift certain radioactive waste-producing operations out of the country, even enforcing a ban on imports of raw materials with these elements.

The game-changer was Lynas’s innovative proposal: a technology that could extract thorium not just from the raw materials but also from the accumulated waste. If Lynas can effectively commercialize this method, the waste can be rapidly disposed of, while the extracted thorium might find buyers in nuclear plants worldwide.

But why is this decision so monumental for Lynas?

For starters, had Lynas not been granted this extension, the company would be staring at a gaping hole in their supply chain. Their Kalgoorlie plant in Australia would not start processing any carbonate product until the next year, and ramping up to their nameplate capacity would take potentially another nine months. This scenario would have crippled their Malaysian production for nearly three-quarters of the year, slashing their annual output by half.

Historically, Lynas imported its monazite concentrate from Mount Weld in Australia. This concentrate would then journey to Malaysia, undergoing a sulfation bake. In simpler terms, it would be combined with sulfuric acid, processed in a kiln, and subsequently undergo a water leach and purification process. But one of the waste streams from this method, which contained higher radiation levels, proved problematic.

Lynas’s ambitious plans include expanding its Magnetic Materials (Neodymium and Praseodymium) production in Malaysia, a crucial component in various modern applications ranging from magnets in wind turbines to motors in electric vehicles. With expansion plans in the pipeline and a new facility in Texas, the extended operating license in Malaysia ensures that Lynas has a consistent supply to meet global demands.

The strategic decision by the Malaysian government underscores the importance of Lynas in the global rare earth industry. With news of other major players facing operational hiccups, the industry needed a win. And this decision, undoubtedly, is a significant one. It not only secures Lynas’s position but also sends a positive signal for the rare earth industry at large.

In essence, this development underscores a harmonizing synergy of economic ambitions and environmental prudence. While the decision spells robust business prospects for Lynas, it’s also a nod to Malaysia’s commitment to environmental sustainability. The future, it seems, is both green and bright for Lynas and rare earths.

In a recent InvestorIntel interview, host Jack Lifton caught up with Mark Chalmers, CEO of Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), a company that he boldly terms as the “single most underrated critical minerals company on the NYSE.”

In this interview, Chalmers elucidated that Energy Fuels stands unparalleled in its production capacity, especially in the uranium sector. With a global thrust towards carbon-free energy, he said that the uranium business is experiencing a renaissance. Following a dormant phase post-Fukushima, utilities are now vying for long-term contracts. This renewed interest aligns perfectly with Energy Fuels’ strategic moves to re-engage multiple mines.

Shifting gears to rare earths, Chalmers emphasized their pioneering status as the solitary producer in the US. Their successful alliance with domestic American heavy rare earths miner, Chemours, has ushered them into processing monazite and making strides in the rare earth carbonate sector. Energy Fuels’ Bahia heavy mineral sands project in Brazil, and its phase one separation plant in Utah stand as testaments to its rapid advancement.

A notable moment in the interview was when Lifton pointed out the vast disparity in construction costs between Energy Fuels and the recent US Department of Defense’s $300 million contract awarded to Lynas. Chalmers attributed Energy Fuels’ economic advantage to leveraging existing infrastructure, in-house expertise, and its unique ability to oversee everything internally.

In wrapping up, Lifton commended Energy Fuels for its unmatched potential and trajectory in critical minerals. Chalmers graciously responded, hinting at more exciting updates in the coming months.

With both uranium and rare earths witnessing global demand surges, Energy Fuels, under Chalmers’ aegis, is poised to redefine industry paradigms. To access the full Investor Coffee Interview, click here

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About Energy Fuels Inc.

Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (“REE“) materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America’s key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (“ISR“) Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development.

To learn more about Energy Fuels Inc., click here

Disclaimer: Energy Fuels Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc., 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.

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In this InvestorIntel interview with host Jack Lifton, Energy Fuels Inc.‘s (NYSE American: UUUU | TSX: EFR) President and CEO Mark Chalmers talks about returning from Brazil with a signed agreement for the acquisition of the major rare earths Bahia Project.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Mark discusses the 60 square mile acquisition of the very high quality heavy mineral sand deposit by Energy Fuels north of Rio de Janeiro. “This is a big step for our company,” Mark explained, “as it could supply ultimately because of its size between 3,000 to 10,000 tons a year of monazite sand.” This could translate into between “1500 to 5 000 tons of REO per year,” he continued, making it “important as a base load for the White Mesa mill.”

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About Energy Fuels Inc.

Energy Fuels is a leading U.S.-based uranium mining company, supplying U₃O₈ to major nuclear utilities. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is ramping up commercial-scale production of rare earth element (“REE“) carbonate. Its corporate offices are in Lakewood, Colorado, near Denver, and all its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR“) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, and has the ability to recycle alternate feed materials from third parties, to produce vanadium when market conditions warrant, and to produce REE carbonate from various uranium-bearing ores. Energy Fuels is also evaluating the potential to recover medical isotopes for use in targeted alpha therapy cancer treatments. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Alta Mesa ISR Project is also on standby and has a licensed capacity of 1.5 million pounds of U₃O₈ per year. In addition to the above production facilities, Energy Fuels also has one of the largest SK-1300/NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development.

The rare earths sector has been doing very well lately, especially the highly valued magnet rare earths for which prices have doubled over the past year. Neodymium (Nd) and praseodymium (Pr) are the key magnet rare earths used commonly in electric motors. They also fall into the category of the ‘light rare earths’. Another group of rare earths, known as the ‘heavy rare earths‘, also have value. They include europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium and yttrium. Dysprosium (Dy) in particular is very valuable and is critically necessary for and used in alloys for neodymium based magnets subject to high temperature swings in operation.

Today’s company is working towards becoming a North American producer of both light and heavy rare earths.

Vital Metals Limited (ASX: VML | OTCQB: VTMXF) (Vital) is a rare earths ore producer from their Nechalacho Rare Earths Mine in the Northwest Territories (NWT), Canada. Nechalacho has a measured, indicated and inferred resource of 94.7Mt at 1.46% REO for 1.3Mt contained TREO. The focus to date has been on the high-grade, light rare earths, found in the bastnaesite mineralization there.

Vital has off-take agreements with REEtec in Norway and with Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF) in the USA. In both cases, Vital is working with them to develop a qualified feed stock for them end at commercial scale. In some good recent news, offtake buyer, REEtec,  signed a supply agreement with Germany’s large OEM automotive supplier,Schaeffler, thereby potentially securing Vital’s revenue from the sale of its product to REEtec.

Vital is currently constructing a Saskatoon, Saskatchewan, based cracking and leaching facility, with first feed to the facility expected in June 2022. An additional C$5 million of funding/reimbursement was recently achieved to help support the commissioning and ramp-up stage. Vital aims to produce a minimum of 5,000 tons annually of contained REO by 2025 at the Nechalacho Mine.

Vital Metals’ Managing Director Geoff Atkins stated: “With production forecast to commence in June 2022, this will make Vital North America’s only producer of high purity rare earth carbonate with feed from its own mines providing security of supply for the global rare earths supply chain.”

Expansion into heavy rare earths

As announced on April 29, 2022, Vital is now planning to expand their existing light rare earths mine operation to also include heavy rare earths. Vital plans to investigate developing a zone of xenotime mineralization, the principle heavy rare earth hard-rock mineral, at Nechalacho’s North T pit, targeting a 10-year operation from the zone.  Xenotime,  is an yttrium phosphate mineral, and is the only known commercially feasible hard-rock source of dysprosium and terbium, which are the critical magnet rare earth additives for high temperature operations. As Vital stated: “Tardiff contains elevated heavy rare earths mineralization which may complement North T’s xenotime deposit as part of Vital’s strategy to produce heavy and light rare earths.”

Next steps

In 2022, in addition to commencing production at the Saskatoon facility and working on expanding into heavy rare earths, Vital plans further drilling at the Tardiff zone to define a maiden Ore Reserve. 

Vital Metals 3 stage strategy to become a North American producer of both light & heavy rare earths

Source: Vital Metals March 2022 quarterly report

Closing remarks

Vital Metals continues to march forward at a rapid pace. In late June 2021 the Nechalacho mine came into production, notably being Canada’s first-ever producing rare earths mine. Then only a year later in June 2022, the Saskatoon cracking and leaching facility’s first production of a mixed rare earth carbonate is set to commence.

If that wasn’t good enough the Company is now planning to also produce heavy rare earths, also from the Nechalacho Mine. Once achieved Vital announced that they would become the “the world’s first producer of both heavy and light rare earth oxides.”

Vital Metals trades on a market cap of A$204 million. Exciting times ahead.

It is always interesting to look back and see if what was written comes true. About 9 months ago I wrote an article here describing how Vital Metals was on track to become a rare earths carbonate producer in 2021. Fast forward to today and Vital Metals has delivered on their plan.

On July 6 Vital Metals Limited (ASX: VML) (“Vital”) announced that the Company has commenced rare earth production at Nechalacho. This is a tremendous achievement and means Vital joins an elite group of only 2 or 3 North American rare earths producers (includes MP Materials and for rare earths processing Energy Fuels). It also means Vital has become the first Canadian rare earths producer. Congratulations to Vital Metals from the team at InvestorIntel!

Mining at Vital’s Nechalacho’s North T Zone in Canada’s Northwest Territories (NWT) is underway as part of Stage 1 production strategy. Vital is now crushing and sorting ore before sending it to a Saskatoon cracking and leaching facility later in 2021. Vital has also commenced drilling to define a mine plan for Stage 2 at Nechalacho as it works to develop a larger scale, longer life rare earths project.

Vital Metal’s Nechalacho Rare Earths Mine in NWT Canada location and key zones

Source: Vital Metals

Nechalacho hosts a world-class resource of 94.7Mt at 1.46% REO (measured, indicated and inferred). Nechalacho’s North T Zone hosts a high-grade resource of 101,000 tonnes at 9.01% LREO (2.2% NdPr), making it one of the highest grade rare earths deposits in the world. The resource has the potential to grow further as shown in recent drilling results that reported “broad high grade REO in near surface drilling at Tardiff Zone….thickness in excess of 60m in width and with grades up to 13.8% intersected”. Vital stated in the release that high value Nd/Pr content was an impressive 24.2% of TREO and that Zone 1 was open in all directions. These results will form part of a new resource upgrade to be part of the Stage 2 expansion plans at Nechalacho.

The metallurgy is a simple process involving a 35%+ initial beneficiation via ore sorting and 97% recovery into solution via hydrochloric acid using an industry standard process.

In more good news, in May 2021 it was announced that Vital’s offtake partner REEtec has formally accepted Vital’s rare earth carbonate sample. Vital will provide REEtec with 1,000 tonnes REO (ex-cerium) per year for five years with the option to increase volume by up to 5,000 tonnes REO per year over 10 years.

Mid-term strategy and goals

Vital aims to become the lowest cost producer of mixed rare earth oxide outside of China by developing one of the highest grade rare earth deposits in the world and the only rare earth project capable of beneficiation solely by ore sorting. Vital also aims to be the largest independent supplier of clean mixed rare earth feedstock outside China.

More than $120 million has been spent by previous owners on drilling, permitting and project development at Nechalacho, which includes a 40-person camp and airstrip.

Vital aims to produce a minimum of 5,000 tonnes of contained REO at Nechalacho by 2025, or earlier.

Closing remarks

Achieving rare earths production in the West is no easy task. The process towards production, including permitting, can take over a decade. Vital has now achieved a low scale small CapEx rare earths production start-up operation, with big plans to expand in the years ahead. Given management’s exceptional track record to date, it is looking good for Vital to achieve their expansion plans in the years ahead.

The production of rare earths on North American soil is not only a great step forward for Vital Metals, but it is also a significant step forward for the West to secure a safe rare earths supply.

Vital Metals now trades on a market cap of A$208 million after a great past 1 year return of 308%.

Vital Metals on track to become a rare earths carbonate producer in 2021

In news out today rare earths carbonate developer Vital Metals Limited (ASX: VML) (‘Vital’), through its 100% owned subsidiary Cheetah Resources, has signed a binding Term Sheet with the Saskatchewan Research Council (‘SRC’) to negotiate definitive agreements for the construction and operation of a Rare Earth Extraction Plant to produce a mixed rare earth carbonate product. The capital cost estimate of the Rare Earth Extraction Plant is A$5.25m.

The Rare Earth Extraction Plant is planned to be located adjacent to a recently announced Rare Earth Separation Plant in Saskatchewan, Canada, and could provide a rare earth carbonate feedstock to produce a commercial grade separated rare earth oxide. The proximity makes it natural for SRC’s Separation Plant to be a potential customer of Vital/Cheetah’s mixed rare earth carbonate product from their planned Extraction Plant.

Vital Metals’ Managing Director Geoff Atkins comments

“The signing of this Term Sheet with SRC marks an important milestone for Vital and the development of the Nechalacho Project,” said Vital Metals’ Managing Director Geoff Atkins. “Whilst the Definitive Agreements continue to be finalised in line with the Term Sheet, the Company is excited about the prospect of the construction and operation of a rare earth demonstration extraction plant, as well as it being co-located with SRC’s recently announced rare earth separation plant. Being the only rare earth project in Canada with near term production capability, co-located with Canada’s only Separation Facility, provides Vital the opportunity to be a cornerstone of the North America Critical Minerals Strategy.”

Vital Metals low CapEx strategy to become a rare earths carbonate producer in Canada

Traditionally rare earth miners would look to build a huge plant to make a rare earths end product, however Vital Metals has a different strategy to reach production quicker and with a much lower CapEx, as well as supporting a much needed non-China rare earths supply chain.

Vital is an explorer and developer with highly prospective mineral projects, focusing on their world-class rare earth Nechalacho Project in Canada. Their strategy is to be the largest independent supplier of clean mixed rare earth feedstock outside of China, with a goal to produce a minimum 5,000 tonnes of contained rare earth oxide (REO) by 2025. A key component to the plan is a much smaller scale plant with an extremely low CapEx of just A$20m to produce rare earth carbonate. Subject to the various hurdles such as funding, Vital Metals hopes to begin production at their Nechalacho Project in 2021. Once in production, Vital’s strategy is to generate low cost near-term cash flow to fund the development of large-scale operations.

Vital Metals Nechalacho Project and Stage 1 strategy

Source

Vital owns two world class rare earth projects – Nechalacho in Canada with ~95mt at 1.46% TREO, and Wigu Hill in Tanzania with 3.3mt at 2.6% TREO.

The Nechalacho Project (Canada)

The Nechalacho Project is a rare earth project located in Northwest Territories, Canada. The current resource estimate is 94.7mt at 1.46% REO (measured, indicated and inferred). The North T Zone at Nechalacho hosts a high-grade resource of 101,000 tonnes at 9.01% LREO (2.2% NdPr). Vital is targeting production of rare earth oxide in 2021 with early production from the North T starter pit.

More than $120 million has been spent by previous owners on drilling, permitting and project development at Nechalacho, which includes a 40-person camp and airstrip. The Project is fully permitted for a 600kt mining and ore sorting operation and is 100km from Yellowknife. The local infrastructure is well established with access to the Canadian National Railway at Hay River. Access to the site is via barge in summer and ice road in winter.

The metallurgy is a simple process involving a 35%+ initial beneficiation via ore sorting and 97% recovery into solution via hydrochloric acid using an industry standard process.

Vital has already completed detailed engineering for the ore sorting plant, defined capital and operating costs, and begun site preparation works. Off-take negotiations are reported to be progressing well with a number of non-China buyers.

Vital Metals next steps and map showing the Tardiff Zones

Source: company presentation

Management is highly experienced. For example, Managing Director Geoff Atkins has 25 years of project and corporate development experience, including four years as Corporate Planning Manager at Lynas Corporation where he oversaw the strategic planning process and the development of the Mt Weld Concentration Plant and Lynas Advance Materials Plant in Malaysia.

Today’s news from Vital suggests that, assuming progress continues successfully, the SRC will support Vital in its construction and operation of their Nechalacho Project. Subject to execution of definitive agreements, processing operations are planned to start in the third quarter of 2021.

The current market cap of Vital Metals is A$52m.