Red Metal Ltd (RDM)

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Interim Phase 2 Metallurgy Green Lights Sybella REO

3 June 2024 9:19 AM. Original PDF: Open PDF | 23 Pages

The interim results of Red Metal's second phase metallurgical study at the Sybella rare earth oxide discovery indicate promising low-cost, low-capital heap leach processing potential.

Summary

• Red Metal reports positive interim results from Phase 2 metallurgical studies at the Sybella project.
• Key findings suggest low-cost, low-capital heap leach processing is feasible.
• High REO extractions achieved with low levels of sulphuric acid.
• Coarser crush sizes (-10mm to -15mm) show high REO recoveries with lower acid consumption.
• Acid consumption rates optimized to lower levels.
• Breakthrough pH 3 leach result on fresh granite has vast tonnage potential.
• Preparations for further column leach tests and impurity removal trials are underway.
• Broad spaced step-out drilling is about 50% complete.
• Phase 1 results showed high rare earth extractions averaging 78% for neodymium and 79% for praseodymium.

Highlights

• Low-cost, low-capital heap leach processing is feasible.
• High REO extractions with low levels of sulphuric acid.
• Coarser crush sizes (-10mm to -15mm) provide high REO recoveries.
• Optimized acid consumption rates.
• Breakthrough pH 3 leach result on -15mm fresh granite over 56 days.
• Broad spaced step-out drilling about 50% complete.

Positives

• Feasibility of low-cost, low-capital heap leach processing.
• High REO recoveries with coarse crush sizes.
• Optimized acid consumption rates.
• Breakthrough result at pH 3 leach on fresh granite.
• Positive Phase 1 and Phase 2 test results.
• Ongoing drilling and preparations for further tests.

Negatives

• High iron extraction in low pH settings for fresh granite.
• Need for longer residence times in weaker acid settings.

Key Dates

• 3 June 2024: Announcement of interim Phase 2 metallurgical results.
• 1 February 2024: Previous announcement of Phase 1 results.
• 18 March 2024: Follow-up announcement of Phase 1 results.
• 13 May 2024: Initiation of step-out drilling.
• 21 August 2023: Initial RC drilling program announcement.

Alerts

• Contains better than expected results: yes
• Contains worse than expected results: no
• Contains expected results: no
• Sentiment: very positive