View
217
Download
2
Category
Preview:
Citation preview
Kipawa Heavy Rare Earth Deposit:
10 Steps to Commercial Rare Earth Production
Rare Earths and Strategic Metals 2011- Sydney June 21-22
“Case Study”
The information contained herein has been prepared to assist interested parties in making
their own assessment of Matamec Explorations Inc. (the “Company”) and does not purport
to contain all of the information that an interested party may desire. In all cases, interested
parties should conduct their own investigation and analysis of the Company, its assets,
financial condition and prospects, and of the data set forth in this presentation. The
Company does not assume any responsibility for independent verification of any of the
information set forth herein, including any financial forecasts or statements about the
prospects of the Company contained herein. The Company does not make any
representation or warranty as to the accuracy or completeness of this presentation or the
information contained in, or for any omissions from, this presentation or any other written
or oral communications transmitted to the recipient in the course of its assessment of the
Company. By the receipt of this presentation, the recipient acknowledges that only those
particular representations and warranties, if any, which may be made to a party in a
definitive written agreement regarding a transaction involving the Company if, as and
when executed, and subject to such limitations and restrictions as may be specified
therein, will have any legal effect.
Disclaimer
2
3
10 Steps to Developing The Kipawa Heavy Rare Earth Deposit IMCOA 2008 2009 2010 2011 2012 2013 2014 2015
2-5 years Step 1: establish resource Spring 2011
1-3 years Step 2: understand mineralogy Fall 2011
1-3 years Step 3: scoping study Summer/Fall 2011
(Ore processing –
started March „10)
2-10 years Step 4-6: pilot plant
•Beneficiation, extraction &
separation
Step 7: environmental approval Baseline Study,
Characterizing the
environmental sensitivity and land use
Step 8: letters of intent Discussions & CA (Started Feb.
‟09)
2-4 years Step 9: DFS & funding
2-3 years Step10: engineering, procurement,
construction
Total average: 10 years Matamec intends to complete these 10 steps in 7 years
D. Kingsnorth (March 2011): The “norm” is that take between 7 to 20 years to develop a project
Source: Dudley Kingsnorth (IMCOA), March 2010.
3
Completed - end 2011
In Progress
Step 1: Establish Resource (2-5 years)
• Grade of the resource and the REO distribution are key to
the viability of the project
• High concentration of the higher value heavy RE is
advantageous
• Location of the deposit with respect to the availability of
supporting infrastructure (transportation, power, water,
chemicals and skilled labour) brings costs down
D. Kingsnorth (March 2011)
4
Zeus Property & HREE Kipawa Deposit - Location
The First Criteria for Industrial Mineral Deposits isLocation Near Infrastructure
•In Quebec, a premier mine
jurisdiction
•Near all weather roads
•Near railway
•Near mining towns with services
•Near electrical power grid
5
Kipawa Heavy Rare Earth Deposit - Growth
Historical Drill Holes – 2Mt (1990) 2009 Drill Program – 39 Mt (June
4, 2010)
2010 Drilling Program – Update
Resource Estimate Completed:
50 Mt (January 20, 2011)
Winter 2011 - Infill Drilling
Program Completed in February
Updated NI 43-101 (June 2011)
NI 43-101
Ressources
(November 2011):
4.9 Mt @ 0.61%
TREO Indicated (33%
HREO+Y2O3)
4.3 Mt @ 0.63%
TREO Inferred (35%
HREO+Y2O3)
+
30.1 Mt @ 0.98%
ZrO2 Indicated
20.9 Mt @ 1.00%
ZrO2 Inferred
6
SW NE70% 20%
10%
Kipawa Deposit Schematic Cross-Section
Heavy Rare Earth Enriched Zones: 0.62% TREO (cut-off of Dy2O3 0.016%)
4,920,000 Indicated tonnes + 4,260,000 Inferred tonnes (January 20, 2011, NI43-101)
Zirc
oniu
m Z
one
(with
TR
EO
)
TREO Enriched Zones
37%
HREE/TREE
7
Step 2: Understand Mineralogy• Most critical step in the early evaluation of a project
• to be carried out in conjunction with resource evaluation
• Identification of the mineral(s) containing the RE
• an important stage in determining the amenability of the ore to cost-effective
processing
• Few RE minerals as bastnaesite, South China clays, monazite, xenotime and
loparite are well-known
• their processing is well understood for the producing deposits
• Liberation size of the RE mineral(s) should not to be too fine
• so that they are amenable to conventional beneficiation techniques such as
flotation, gravity and magnetic separation D. Kingsnorth (March 2011)
9
Minerals Mineral Formulas Elements REO - Wt %
Eudialyte (Unique in the world)
Na15(Y,Ca)6Fe6Zr3
(Si26,073)(O,OH,H2O)5
Zr, Y, HREE 10 %
Mosandrite/Yttro-titanite
NaCa2(Ca,Ce,Y)4
Ti(Si2O7)2F5 and
(Y,Ca)TiSiO5
Y, HREE, Ti? 45 %
(Mosandrite)
Britholite
(Ce,Y,Ca)5(SiO4,PO4
)3 (OH,F)
Y, HREE, P2O5 62 %
Vlasovite
Na2ZrSi4O11 Zr
.
Primarily one mineral: Eudialyte - medium grained, well-crystallized and not intergrown
Kipawa Deposit: Simple Mineralogy
1010
Step 3: Scoping Study
• Establish viability to justify undertaking a Definitive Feasibility Study
• Usually includes:
- A resource estimate to an inferred level
- A process proven at a bench scale (possibly two alternatives to be
evaluated in the pilot plant)
- A site selected for the processing facilities
- Baseline environmental studies
- An order of magnitude (+/- 35%) capex and opex indicating the
project is viable
- Support from the local community and by the relevant government
agencyD. Kingsnorth (March 2011)
11
Kipawa Deposit
Rare Earth
Ore Processing:
Ore
Crushing
Grinding
Physical
Concentration
Cracking
Leaching
Solid / Liquid Separation
Purification/
Precipitation
Solvent Extraction
Heat
Acid
Water
Stabilization
Products Products
Raffinate or
Barren Liquor
Solid Tailings
Liquor
The physical characteristics of
the Kipawa eudialyte ore allow
for low-cost chemical extraction,
which gives it a competitive
edge against current rare earth
producers
Press releases
- August 9, 2010
- October 18, 2010
- January 20,2011
- March 8, 2011Lab.recoveries
92.8%
TREO
in 52%
of
original
mass8
3
%
T
R
E
O
89.2%
TREO
12
4 Steps
13
Products: Ore for the Mill/Waste rock in dump
Step 1. Open pit mining
Products: Mixed Rare Earth Concentrate/Tailings in ponds
On Site or in townOn Site
Step 2. Physical Concentration Mill
Crushing
Grinding
Physical
Concentration
Ore
Waste
To Step 3
Dissolution
Separation and
Purification
Precipitation or
Solvent Extraction or
Electrolysis
Products
Liquor recirculation
14
Step 3. Chemical Separation Plant
Leaching
Solid / Liquid
Separation
Precipitation
Hea
t Acid
Water
Stab
ilization
Products
So
lid Tailin
gsLiquor
Cracking
Products: Rare Earth concentrate in oxyde
form/Solids in tailings pond
Step 4. Individual Rare Earth Separation
REO Concentrate from Step 3
In town or internationalIn town
Products: 99% pure individual rare earth concentrates
Mixed REE Concentrate
From Step 2
Cost and Schedule of Future Work2011 2012 2013
1- Geology $1.970M $3.630M $1.500M
2- Engineering Studies including Mining
- PEA
- Pre-Feasibility
- Feasibility
$0.300M
$1.100M
$3.850M
3- Mineral Processing and Metallurgy
- Specific Testwork
- Continuous Testwork
- Pilot Plant - Construction
$1.000M$2.500M
$3.750M
4- Environment and Permitting$0.400M $0.600M $0.600M
5- Relation with the Community$0.150M $0.500M $0.850M
6- Market StudyIncl. in the
Eng. Studies- -
Total: $3.820M $8.330M $10.550M $22.700M
15
Kipawa REE-Y-Zr Deposit: 3 Year Plan - Budget
Amounts
spent
locally
Step 4-6: Pilot plant(s) - Three stages:
beneficiation, extraction & separationThe heart of developing a successful project which has the
following objectives:
• To generate data for the DFS
• To produce samples for customer evaluation from a three-
stage pilot plant that has operated continuously for at least 10
days
• To generate the data for the Environmental Impact Statement
( All rare earth minerals contain U and Th for which
acceptable waste disposal techniques have to be
demonstrated)
• To demonstrate the technical viability of the projectD. Kingsnorth (March 2011)
16
Step 7: Environmental Approval
• Preparation, baseline studies, public review and environmental
approval
• Extraction and separation processes, associated chemical
transport and storage, and radioactive waste management (these
facets of a project are always subjected to detailed study by the
local environmental authority and the public)
•Additional pilot plant studies may be required to satisfy specific
requirements
D. Kingsnorth (March 2011)
17
18
Characterizing the environmental sensitivity and land use before
the introduction of a rare earths mine
Goals
→ Territory Assessment
→ Community Information Gathering
→ First Environmental Study: Baseline
Information gathering from internet, communications, mapping and fieldtrips
Communication conducted through letters, emails and phone calls.
Study of terrestrial (plants and soil) and aquatic (fish, drinking water, surface water
sediments, plants) environments to establish a baseline before the introduction of a
mine
5 areas under study for aquatic zones and approximate location of
mineralized deposit
- Remote syenite reference zone = Lac des
loups
- Close syenite reference zone = Lac Sairs
- Close out of syenite reference zone = Lac
Booth
- Close exposed zone = Lac Sheffield
- Remote exposed zone = Chute du Pin
Rouge
Direction of the flow of water
Kipawa Riv.
Kipawa River (Chute du Pin
Rouge)
Approximate location of the mineralized deposit
19
20
Field Study Results
Fish
- Presence of blue pickerel.
- Pickerel of smaller size and in lower numbers within the exposed
areas
-The level of mercury is the only abnormality on the whole of the
studied areas for both species
Water - Lower than standard for surface water and drinking water
Sediment -Lower than standard
Soil -Lower than standard
Plants- Typical concentrations are found in larger amount in aquatic
plants than in terrestrial plants without significant concentration
21
Sustainable Development
- Environmental protection programs
- Implication of the local communities from the beginning
- Harmonization and follow-up table objectives
- 3 committees: environment, training and local investment
- Relationship with the communities of Eagle Village and Wolf Lake
- Preferential hiring policy for locals
- Small environmental footprint
Step 8: Letters of Intent (LOI)
• To be successful a RE company has to integrate its operation into
the supply chains of its customers, which requires mutual trust
•Customer relations needs to start in the early stages of the
project, as their specifications are the basis for planning the pilot
plant
• Generally, LOIs are required for a substantial portion of the
proposed production prior to the final pilot plant run and the
commencement of the Definitive Feasibility Study (DFS)
D. Kingsnorth (March 2011)
22
23
KIPAWA DEPOSIT GROSS VALUE UNRECOVERED IN THE GROUND
Zone TREO ENRICHED ZONES (Cut-off of Dy2O3 ˃0.016%) – May 30, 2011
Tonnage 4,920,000** 4,260,000**
Classification Indicated t** Value in Situ (USD) Inferred t** Value in Situ (USD)
Lanthanum (147$/kg*) La 4,200 617,400,000 3,600 529,200,000
Cerium (148$/kg*) Ce 8,700 1,287,600,000 7,600 1,124,800,000
Praseodymium (215$/kg*) Pr 1100 236,500,000 900 193,500,000
Neodymium (255$/kg*) Nd 4,000 1,020,000,000 3,500 892,500,000
Samarium (117$/kg*) Sm 900 105,300,000 800 93,600,000
Europium (1580$/kg*) Eu 100 158,000,000 100 158,000,000
Gadolinium (180$/kg*) Gd 900 162,000,000 800 144,000,000
Terbium (1580$/kg*) Tb 200 316,000,000 200 316,000,000
Dysprosium (980$/kg*) Dy 1100 1,078,000,000 1,000 980,000,000
Holmium (101$/kg*) Ho 200 20,200,000 200 20,200,000
Erbium (112$/kg*) Er 800 89,600,000 700 78,400,000
Thulium (N/A) Tm 100 100
Ytterbium (N/A) Yb 700 600
Lutetium (505$/kg*) Lu 100 50,500,000 100 50,500,000
Yttrium (155$/kg*) Y 6,700 1,038,500,000 6,400 992,000,000
Zirconium (4.6$/kg*) Zr 43,400 199,640,000 43,000 197,800,000
6,379,240,000 5,770,500,000*Prices from Metal-Pages , Industrial Minerals and Asian Metals, May 30, 2011. REE oxides 99% min FOB China, Y oxide 99.999% min FOB China and Zr
structural ceramic/electronic grade. 1 CNY = 0.153109 USD.
**Source: SGS Geostat (November 29th, 2010).
23
Markets: Rare Earth Supply Chain
Ore OxideMixture ProductMagnetAlloyMetalScrap/
Recycling
China
•China produces 97%:
•Sichuan Mianning Mining
•Jiangxi Copper
•Baotou Steel Rare Earth
•Sichuan Hanxin Mining
Japan•JOGMEC
Australia•Lynas – exp. 2011
USA•Molycorp – exp. 2012
• Etc.
Canada/UK•GWMG
China•CAS Key Laboratory
of Rare Earth
Chemistry and Physics
•Neo Materials
Japan•Santoku,
•Shin Etsu
•Etc.
Japan•Aichi Steel
Corp
USA•Allstar
•Quadrant
•Adams
•Bunting
•Etc.
•GM
•Ford
•Toyota
•Nissan
•Hyundai
•Mitsubishi
•Apple
•LG
•Samsung
•Etc.
24
Rare earths are not commodities
- they are customer-specific chemicals, produced to precise chemical and physical specifications
A customer needs are continually evolving
- which requires the suppliers to become an integral link in the supply chain
Rare Earths Used in Hybrid Cars: Good Fit for The Car Industry
UV cut glass
・CeriumHV electric motor & generator
・Neodymium
・Praseodymium
・Terbium
・Dysprosium
Glass and Mirrors
polishing powder
・Cerium ・Lanthanum
Diesel Fuel Additive
・Cerium
・Lanthanum
La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y
Catalytic converter
・ Lanthanum
・ Cerium
Battery・ Lanthanum
・ Cerium
25
・ Zirconium
Rare Earths Permanent Magnets Used in Hybrid Cars
Motors for electric
power steeringCar navigation hard disk drivesCar speakers
La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y
Starter generator
26
Seat belt
sensors
Electric brakesMotors for electric
pumps
Actuator for inter-
vehicular distance
sensorsElectric car air
conditioning
compressor
Drive motors and
generators
Ignition coil
Source: Shin-Etsu Rare
Earth Magnets
Step 9: DFS & Funding• Definitive Feasibility Study (DFS) is the document upon which
funds are raised for project construction and LOIs are converted to
sales contracts
• Required level of accuracy (+/-15%) for the capex and opex
dictates that 25% of the engineering will have had to be
completed
• A DFS cost of 8-12% of the capex
• For example: cost of a DFS for a project with a capacity of
10,000 tpa REO could well be $30-50M
• Timeline of 18-30 months
• RE resource needs to be upgraded to a measured reserve for
the project to be funded
• Funding of RE project can take 6 to 12 monthsD. Kingsnorth (March 2011)
27
Step 10: Engineering, procurement,
construction & start-up• RE production facility is a complex processing operation that
requires a sophisticated level of engineering more appropriate to a
chemical plant than a mining operation
• This step requires a high level of chemical expertise and RE
operational experience which is not readily available today outside
China
• This final step of the development may well take 2 to 3 years and
the build-up to full operational capacity another 2 to 3 years
D. Kingsnorth (March 2011)
28
10 Steps to Developing The Kipawa Heavy Rare Earth Deposit IMCOA 2008 2009 2010 2011 2012 2013 2014 2015
2-5 years Step 1: establish resource Spring 2011
1-3 years Step 2: understand mineralogy Fall 2011
1-3 years Step 3: scoping study Summer/Fall 2011
(Ore processing –
started March „10)
2-10 years Step 4-6: pilot plant
•Beneficiation, extraction &
separation
Step 7: environmental approval Baseline Study,
Characterizing the
environmental sensitivity and land use
Step 8: letters of intent Discussions & CA (Started Feb.
‟09)
2-4 years Step 9: DFS & funding
2-3 years Step10: engineering, procurement,
construction
Total average: 10 years Matamec intends to complete these 10 steps in 7 years
D. Kingsnorth (March 2011): The “norm” is that take between 7 to 20 years to develop a project
Source: Dudley Kingsnorth (IMCOA), March 2010.
Completed - end 2011
In Progress
29
Recommended