Rainbow Rare Earths Limited Access to Rare Earth Opportunity in South Africa (6865N)
06 Junio 2022 - 01:01AM
UK Regulatory
TIDMRBW
RNS Number : 6865N
Rainbow Rare Earths Limited
06 June 2022
6 June 2022
Rainbow Rare Earths Limited
("Rainbow" or "the Company")
LSE: RBW
Rainbow Accesses Rare Earth Opportunity in South Africa to
Demonstrate Separation Technology Expertise
Rainbow Rare Earths Limited announces that it has entered into a
Memorandum of Understanding ("MoU") with a diversified chemicals
group based in South Africa (the "chemicals group") to investigate
the opportunity of extracting rare earth elements from a nitro
phosphate process stream at its phosphoric acid production plant
near Johannesburg in South Africa.
Under the terms of the MoU, Rainbow will conduct a rare earths
extraction pilot study with the chemicals group, which will involve
initial grade test work on processing stream material. This will be
followed by a technical programme to confirm a flowsheet using
Rainbow's knowledge and intellectual property ("IP") gained from
work carried out to date at the Company's Phalaborwa Rare Earths
Project ("Phalaborwa") in South Africa, including the licenced
K-Technologies, Inc. ("K-Tech") separation technology.
The feedstock for the phosphoric acid production plant
originates from the same ore originally mined by Foskor that
generated the two gypsum stacks at Phalaborwa. Rainbow has already
completed preliminary sampling of the processing stream, with
initial results indicating a Total Rare Earth Oxide grade of 0.81%
total rare earths oxides ("TREO") , with a circa 27% weighting to
high-value neodymium and praseodymium ("NdPr"), alongside economic
levels of terbium and dysprosium, similar to Phalaborwa.
Direct costs associated with the pilot study conducted by
Rainbow using its exclusive IP and technology will be financed by
the chemicals group. Subject to a successful outcome, the parties
intend to negotiate terms for a potential joint venture agreement
to extract value from the rare earths present in the phosphoric
acid processing stream.
Rainbow Rare Earths CEO, George Bennett, commented: "This
project allows us to partner with a global chemicals business and
demonstrates the significance and broader application of our IP and
technology at another project in South Africa. This is a very
exciting opportunity for Rainbow to release additional value from a
nitro phosphate processing stream by efficiently producing
separated rare earths, which are currently untapped within the
phosphoric acid production process.
As at our Phalaborwa Project, the rare earths in this stream are
contained within an acid solution in a 'cracked form', which will
allow us to apply the rare earths separation technology, thereby
facilitating a simple process with significantly fewer extraction
and separation steps than a traditional rare earth mining
project.
Through our processing projects, which have fundamentally
different risk profiles to traditional rare earth mining projects,
we see enormous potential to facilitate near-term access to sources
of critical permanent magnet rare earths, which are required to
decarbonise energy systems in an environmentally responsible
way."
**ENDS**
Market Abuse Regulation ("MAR") Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information, please contact:
Rainbow Rare Earths George Bennett
Ltd Company Pete Gardner +27 82 652 8526
SP Angel Corporate Ewan Leggat
Finance LLP Broker Charlie Bouverat +44 (0) 20 3470 0470
Tavistock Communications PR/IR Charles Vivian +44 (0) 20 7920 3150
Tara Vivian-Neal rainbowrareearths@tavistock.co.uk
Notes to Editors:
Rainbow's strategy is to become a globally significant producer
of rare earth metals. NdPr and Dy are vital components of the
strongest permanent magnets used for the motors and turbines
driving the green technology revolution. Analysts are predicting
demand for magnet rare earth oxides will grow substantially over
the coming years, driven by increasing adoption of green
technology, pushing the overall market for NdPr and Dy into
deficit.
The Phalaborwa Rare Earths Project, located in South Africa,
comprises an Inferred Mineral Resource Estimate of 38.3Mt at 0.43%
TREO contained within gypsum tailings stacked in unconsolidated
stacks derived from historic phosphate hard rock mining. High value
NdPr oxide represents 29.1% of the total contained rare earth
oxides, with economic Dysprosium and Terbium oxide credits
enhancing the overall value of the rare earth basket in the stacks.
The rare earths are contained in chemical form in the gypsum
stacks, which is expected to allow high-value separated rare earth
oxides to be produced with lower operating costs than a typical
rare earth mineral project.
The Company's Gakara Project in Burundi has produced one of the
highest-grade rare earth concentrates in the world (typically 54%
TREO) through trial mining operations. The Gakara basket is
weighted heavily towards NdPr, which account for approximately
19.5% of the contained TREO and 85% of the value of the
concentrate. The Gakara project is currently on care and
maintenance at the request of the Government of Burundi.
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END
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