source:proactive investors
Aclara Resources Inc (TSX:ARA, OTC:ARAAF) chief operating officer Barry Murphy joined Proactive to discuss the company's recent completion of a conceptual engineering study for its rare earth separation project.
Murphy shared insights into the study's positive results, highlighting the company's unique position as the first vertically integrated heavy rare earth producer outside of Asia, and outlined the next steps in advancing the project.
Proactive: You've announced the completion of a conceptual engineering study for your rare earth separation project, and it looks like you're encouraged by the results.
Barry Murphy: Indeed. Yes, very encouraged. So, this is a study that we started earlier this year with the Saskatchewan Research Council and Hatch. The Saskatchewan Research Council applied the standard solvent extraction process methodology, and we took a sample of our concentrate that we produced from our Carina Module down in Brazil. They developed a flow sheet, and Hatch helped with the definition of engineering. And the results are all looking very good.
You also highlighted in the release that it positions the company as the first vertically integrated heavy rare earth company outside of Asia. So a significant milestone for you then?
It is. It's a strategy that we announced a little earlier this year. As well as that, recognizing that we have these two assets in South America positions us, we believe, uniquely relative to our peers in terms of our ability to develop a fully integrated supply chain for heavy rare earths and eventually the production of metals. The conceptual study we've just completed is really the next step in the vertical integration, taking us from the mines to concentration production and the separation of rare earths. We are also, in parallel, looking to move further down the supply chain into the production of metals and alloys for magnet production. So, this is a key component of the vertical integration strategy, and these preliminary results are looking very positive for us. So, we're very encouraged.
Could you take us through a couple of the highlights of those results?
Sure, yes. So, the study was based on a standard solvent extraction flow sheet, chloride-based. The results we got from the work the SRC did for us are also very encouraging—very high purity oxides coming out of the separation facility. The recoveries, particularly for the heavy rare earths, are all north of 90%, which is really good news, especially for an early study like this that hasn't undergone much optimization. That’s the first big takeaway. We introduced Hatch to do the engineering around the flow sheet, and they have a lot of experience with this. They developed the conceptual engineering, including layouts, plot plans, and capital, opex estimates. The capital estimate for this facility is around $354 million.
But importantly, that $354 million is broken into two major components. The first is the separation facility itself, making up about two-thirds of that capital estimate. The remaining third, around $110 million, is tied to waste reduction and the facilities required to limit and practically eliminate all waste products. This aligns with our company's philosophy to have as light a carbon footprint as possible and be very conscious of the environmental impact of our facilities. This is the same philosophy we apply to our concentrators and mines in South America, and we’ll be applying it to the separation facility. The test results have shown that this is all possible.
What are the next steps then?
Our intention now is to take this conceptual study and advance it toward a pre-feasibility study. This will involve several steps, starting with further optimization of laboratory test work, eventually moving into a pilot plant. We're also considering an alternative extraction chemistry. The chemistry we've applied at the SRC is a standard chloride-based process, but there’s an alternative nitride-based chemistry. Both have their pros and cons, and we plan to investigate the nitride-based process further to see how it compares. We’ll also conduct a location study, focusing on the United States, to determine where the facility would be best located from a permitting and resource availability standpoint. As we progress toward the pre-feasibility study, we’ll fine-tune the economics and explore potential synergies between this facility and our concentrators in South America to reduce opex or capex.