Medallion finishes techno economic assessment for REE extraction from mineral sand monazite

Medallion Resources Ltd. (CVE:MDL) (OTCQB:MLLOF) (FRA:MRDN) has provided a summary of an independent Techno-Economic Assessment (TEA) for its proprietary process that enables sustainable extraction of rare earth elements (REE) from mineral sand monazite. 

The TEA was done by process engineering and simulation specialists Simulus Engineers (Australia). The Medallion Monazite Process is a proprietary method and related business model to achieve low-cost REE production utilizing mineral sand monazite. Monazite is a rare earth phosphate mineral available as a by-product from heavy mineral sand mining operations. 

The Medallion Monazite Process is developed by utilizing process intensification principles. It has an automated design that is transferable to many global locations and scalable in size as REE demand grows. Medallion has recently paired this process with patented REE separation technology developed by Purdue University. It has invested with Purdue to gain an exclusive license for its Ligand Assisted Displacement (LAD) chromatography, which maximizes recovery and cuts cost. The process, however, has not been modelled in the TEA. 

READ: Medallion Resources successfully separates and purifies two high-value rare earth elements from monazite

The company highlighted the following key points:

• Medallion has received from Simulus Engineers comprehensive process flow diagrams, equipment lists, reagent, energy and personnel requirements and energy, heat and mass balances for the Medallion Monazite Process;
• Engineering was completed at an assumed 7,000 tonnes per annum scale;
• The TEA has demonstrated the technical and financial viability of the Medallion Monazite Process at a scale where a facility would deliver around 870 tonnes per annum of neodymium (Nd) and praseodymium (Pr) oxide in cerium-depleted mixed carbonate form. Neodymium (Nd) and Praseodymium oxide are the key inputs for rare earth element permanent magnet production, currently priced at around US$80,000 per tonne. REE permanent magnets are high growth markets due to their importance for electric mobility and renewable power generation;
• Other products from the Medallion Monazite Process include cerium (Ce) oxide and trisodium phosphate (TSP);
• Meanwhile, the engineering data has led to a financial model being prepared by Denco Strategic Research & Consulting that can be tweaked, depending on operating assumptions. In the modelled base case scenario, a southeastern US setting was assumed for capital and operating costs, while REE ratios from US-sourced mineral sand monazite was used to model REE outputs;
• The model relied on a capital cost estimate of $34 million as determined from engineered components (not including site-specific costs) for an assumed 7,000 tonnes monazite per annum process facility.

“We are very pleased to have reached the TEA milestone, which indicates the technical and financial viability of the Medallion Monazite Process,” Medallion CEO Mark Saxon said in a statement.

“Over the past decade, Medallion has remained committed to the vision of developing technology to reduce the environmental impact of REE production. The process developed does not require new mining but utilizes a high-grade relatively low-value by-product from heavy mineral sand mining.”

Saxon said Medallion is now discussing opportunities with “partners and prospective licensees under NDA’s and developing business models to maximize value from past investment.”

Medallion has completed ten years of research and test work with service providers to develop this technology. “More than 90% of the raw material feedstock becomes saleable products within the Medallion Monazite Process,” noted the company.

The board is reviewing the TEA results to decide on more investments towards monetizing the Medallion Monazite Process, said the company, while adding that a “licensing/partnership business approach with parties that have access to mineral sand monazite” is likely most appropriate during this high monazite price environment.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

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