Proactive Investors - Run By Investors For Investors

Tantalus Rare Earths confirms massive scale of Madagascar project

SRK has defined a 435mln tonne resource, with 348,000 tonnes of contained rare earth oxides.
Tantalus Rare Earths confirms massive scale of Madagascar project

Tantalus Rare Earths (XETRA:TRE) has revealed a new resource estimate for the TRE project in Madagascar which has confirmed its massive scale.

The review, carried out by consultant SRK, has defined a 435mln tonne resource at 0.08% total rare earth oxides (TREO), which equates to 348,000 tonnes of contained TREO.

This triples the size of the resource, which was last assessed in 2011.

“Our optimistic view of the value of the Tantalus project continues to be supported by the results of the exploration programme,” said chief executive Jurgen Schillinger.

“The issue of this updated JORC compliant inferred mineral resource represents a further milestone for the TRE project.

“It confirms the massive scale and grade of the project. It justifies proceeding with the proposed technical evaluation and preparation of a preliminary economic assessment.”

Tantalus also confirmed that analysed material shows that 19% of the REOs are in the ‘heavy’ category – across the industry these ‘heavy’ rare earths are typically considered to be premium products.

And the company says that once cerium is excluded in production the heavy rare earth ratio will increase to about 31%.

It was also highlighted in that the research being conducted by the University of Toronto has confirmed that the  project’s rare earth material can be processed using very basic and environmentally friendly leaching method, which will separate a rare earth concentrate from ionic clays.

This material, according to Asian Metal, which is conducting separate research, is similar to the ion absorption clays found in China, which yield production costs averaging just US$3 to US$4 per tonne.

Tantalus said that the REO basket price for the material is estimated, by Asian Metal, at US$71.26 per kilogram.

Meanwhile, after applying a 35% discount to that basket price, Tantalus says the in-the-ground rare earth resource (excluding cerium, which cannot be processed simply) would be worth an estimated US$9.9bn.

“The suggested presence of a relatively large ion adsorption type clay deposit at the TRE concession renders it of particular importance to global efforts towards the expansion of HREO supply.

“The ion adsorption clay deposits of Southern China are currently the primary source for the vast majority of global heavy rare earth production, and have endowed China with a distinct economic advantage, as they are generally comparatively simpler and less expensive to exploit than their bedrock counterparts.

“Assuming additional studies reinforce test work indicating the presence of ion adsorption type clays, the development of the TRE Project will constitute an important step towards the establishment of an ex-China HREO supply chain that is directly comparable, and potentially competitive on a price basis, with that of China.”

The new resource estimate is based on a large amount of data taken from 289 drill holes, 968 pits and more than 20,000 samples.

Last week, Tantalus received regulatory approval for a share issue to raise up to €10.5mln.

View full TAE profile View Profile

Tantalus Rare Earths AG Timeline

Related Articles

Australian dollars
November 12 2018
The company expects to finish its definitive feasibility study for the Northern Territory project in December 2018.
transparent piece of film being bent between a vice
August 19 2018
The company is both a gold explorer and developer of new printable memory technology.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use