Parabellum Resources Ltd (ASX:PBL) is continuing to make significant progress on the mineral resource estimate, metallurgical test work and engineering design which form the key deliverables required in the scoping study at the Khotgor REE (rare earth elements) Project in Mongolia.
Executive director Peter Secker said: “I am really pleased to inform shareholders that the scoping study work is progressing very well, and the metallurgical test work results achieved to date continue to support our view that the Khotgor Project can be developed into a significant rare earth operation.
“Over the next few months we will continue to keep shareholders informed as to operational progress across the various work streams.
“The PBL board feel confident that the outcomes will demonstrate a robust project set amongst a backdrop of strong pricing in REE markets that remain highly constrained outside of traditional supply coming out of China.”
Mineral resource estimate
Parabellum’s 2,000-metre infill and bulk sampling program was completed in mid-October and all core samples have now been sent for REO (rare earth oxide) analysis.
It is anticipated that all assay results will be completed before the end of the year and then modelling for a new mineral resource estimate (MRE) under the JORC 2012 Code will be undertaken.
Subject to receiving all of the assays back before the end of the year, it is anticipated that the updated MRE will be available in Q1, 2023.
Final core box preparation prior to being sent to SGS labs Ulaanbaatar, Mongolia.
The updated MRE will be reported under the JORC 2012 reporting standards and will also include the latest infill drill results.
In addition, the new resource and production plan will focus on production of the NdPr (neodymium-praseodymium) suite of rare earth minerals.
Metallurgical test work
Metallurgical test work on a 1.3-tonne bulk sample from Khotgor has been underway at ALS Perth, Western Australian laboratories over the past 6 months.
Initial flotation test work has indicated good extractions of rare earths and good filtration properties.
Rare earth extraction was >95%, which is a positive outcome when benchmarked against historical REE test work.
Optimisation flotation work is ongoing to try and increase REO recoveries.
Hydrometallurgical test work is now underway to produce an intermediate carbonate or chloride product, prior to final REO/NdPr separation.
Initial test work has indicated that REO recoveries of >90% can be achieved for this stage.
The next phase of test work will be undertaken early in the new year to focus on production of individual REO oxide streams, with a focus on the NdPr mineral suite.
The current schedule is to complete all of the metallurgical test work during Q1, 2023 for inclusion in a scoping study, to be available by late Q1, 2023.
Engineering design
Mine design and project engineering design for the scoping study will commence in the next quarter to meet the scoping study schedule.
This work will be undertaken in Perth, with assistance from engineering consultants in Mongolia.
Rare earth market update
The global rare earth market size is expected to grow at a compound annual growth rate (CAGR) of 12% between 2021 and 2026.
The increasing number of applications for rare earth magnets using both Nd and Pr in both electric vehicles and wind turbines are the predominant applications driving this growth, with a hybrid vehicle using up to 1kg of Neodymium per vehicle and a full electric vehicle using more.
In 2021 the price of dysprosium oxide rose above $100,000 per tonne, driven by growing demand in the magnet, lasers and nuclear sectors.
NSW copper-gold exploration
Unprecedented rainfall continued to impede progress during October, however, Parabellum’s NSW exploration team has re-commenced targeting work at the key projects of Whitbarrow, Redlands and Lunns Dam.
Ground electromagnetic (EM) work at Redlands has recommenced and additional EM work is planned for Miandetta in December.
Subject to the weather remaining dry into 2023, the company is scheduled to commence an RC (reverse circulation) drilling program on the high priority EM targets early in Q1CY2023.
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