Krakatoa Resources Ltd (ASX:KTA) welcomes positive metallurgical and mineralogical results from a test work program completed at the flagship Tower Rare Earth Element (REE) Project in the north-western margins of the Yilgarn Craton in Western Australia.
Hot on the heels of its maiden mineral resource estimate (MRE) of 101 million tonnes at 840 parts per million (ppm) total rare earth oxides (TREO) at Tower in late November, the explorer has reached another milestone, achieving “excellent metallurgical recoveries” for key rare earth elements.
Simple extraction techniques recovered neodymium and praseodymium at rates of up to 64% and 61% respectively. These initial recovery rates compare favourably with other globally significant clay-hosted REE projects.
What’s more, the mineralogical studies indicate that a majority of the rare earths are hosted in clay or as rare earth minerals at a size greater than 20 microns, which indicates an opportunity for simple beneficiation processing to increase the grade and recovery.
Optimised extraction process
Results from the test work, conducted by the Australian Nuclear Science and Technology Organisation (ANSTO), will be used by Krakatoa to optimise the extraction process options and develop a viable processing and production pathway at Tower.
Krakatoa CEO Mark Major said: “We are very pleased with the initial diagnostic metallurgical results from the Tower deposit.
“These have generated impressive recoveries of the key magnetic rare earths neodymium-praseodymium-dysprosium-terbium, all highly sought after and highly priced rare earth elements.
"Importantly, these results provide the company with a high level of confidence that the metallurgy of Tower is amenable to the use of common simple extraction techniques and provides us with a clearer understanding of the REE hosts and the suitability for beneficiation.
“The Tower deposit is characterised by a combination of ionically absorbed, acid-soluble and refractory minerals. Comparatively, these results are very similar to other extraction results generated by globally significant and well-known clay-hosted REE projects with similar processing methods.
"Krakatoa now has one of the biggest clay-hosted REE mineral resources in Australia with a positive extraction and production pathway.
“The company will now focus on progressing the project towards mining operations by further optimising the extraction process while increasing the resource confidence which will lead to the commencement of economic studies.
“Krakatoa is now also in a position to commence strategic discussions with end users and industry groups related to potential development, funding, off-take arrangements, and downstream processing opportunities.”
Next steps
The company expects additional supplementary test work programs to begin in early 2023 to refine and improve the metallurgical process, with a primary aim of expanding the program over an extended area of study during 2023.
Krakatoa will look to undertake initial beneficiation testing, supplementary mineralogical studies and particle size distribution of the rare earth hosting clay to help assist with optimisation of the rare earth recoveries and overall metallurgical process.
Additional and extended metallurgical test work programs will be undertaken to expand on the area distribution to reflect all zones within the Tower resource.
Infill core drilling will be conducted to collect in-situ samples for further metallurgical and material classification works, while also assisting with increasing the level of resource classification.
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