Auxico Resources Canada Inc (CSE:AUAG, OTCQB:AUXIF) revealed that it has received approval for a temporary, two-year-long environmental license for small-scale open-pit mining from the Colombian environmental authority known as the Regional Autonomous Corporation of the Orinoquía (Corporinoquia).
The Montreal-based company said the green light comes on the heels of another recent approval in April for an Environmental Impact Assessment study (EIA) for the Minastyc property.
The ability to commercialize the Minastyc property is a key advancement that coincides well with the recent metallurgical testing developments for the separation of light and heavy rare earths, noted the Canadian company.
Auxico said it has demonstrated the ability to process concentrate samples taken from the Minastyc property into light and heavy rare earth commercial concentrates; dysprosium up to 16.1% (concentrated 20 times from its initial feed), and terbium up to 3.42%.
Dysprosium has one of the highest magnetic strengths of the rare earth elements, especially at low temperatures. Along with terbium, the two heavy rare earth elements are crucial for weapons systems. In addition, Dysprosium is increasingly in demand for the permanent magnets used in electric-car motors and wind-turbine generators in order to maintain an electric powertrain magnet's coercivity through repeat cycles of heating and cooling.
Only car manufacturers with access to heavy rare earths will be in a position to produce EVs in 2030, while those without them may be selling their EV factories, noted Auxico.
Has highest-grade heavy rare earth deposits
Significantly, Auxico’s Minastyc property has one of the highest-grade heavy rare earth deposits globally, according to industry expert Jack Lifton.
The Minastyc project has secured approvals for the beneficiation of minerals including niobium, tantalum, vanadium, zirconium, tin, gold and minerals concentrates. The approval and resolution authorize Auxico to execute its first phase of the Minastyc project.
Auxico said it is planning a “systematic planning phase” to kick off operations at the Minastyc property, given the presence of critical minerals, including coltan, rare earth elements, and tin along with precious metals.
With previously announced test results on samples from pits located on and adjacent to the Minastyc property indicating 33.75-to-62.13% tin oxide content, Auxico said it will laser focus on developing tin concentrate operations in Colombia with material sourced from its own property.
Auxico said the latest approval gives the firm greater material sourcing independence as a producer, and the ability to swiftly execute on already established off-take agreements such as the tin concentrate sales agreement it has with Cuex Metal AG.
Notably, the temporary environmental licence issued to Auxico has a validity of two years, pending the approval of a Global Environmental Licence, that will be valid for the life span of the project.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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