Rare earths company ticks off key production milestone

Shares in Meteoric Resources Ltd (ASX: MEI) were trading higher on Wednesday after the company announced it had produced its first batch of rare earths from its recently-constructed pilot plant in Brazil.

The company said in a statement to the ASX that commissioning of the plant started with the introduction of low-grade clay ore into the plant over a two-week period.

Several technical processes were then carried out, the company said.

As it told the ASX:

The pilot plant further validates and optimises the flowsheet and tests different ore types from the Caldeira Project. Data generated from the pilot campaigns will be incorporated into the Caldeira Project definitive feasibility study (DFS) currently being undertaken by Ausenco.

New ores to be tested

Having been tested using low-grade ore, the pilot plant would now move on to ores with grades more typical of the company’s Brazilian deposit.

Technical imporvements could also be made, the company said.

The pilot plant also provides an opportunity to pilot the separation of rare earths by solvent extraction and other technologies such as flash joule heating (FJH). During the commissioning and early operation several opportunities have already been realised which will be reflected in the definitive feasibility study which is currently in progress.  

Meteoric Resources Managing Director Stuart Gale said it was a key milestone for the company.

It’s great to deliver our first batch of mixed rare earth carbonate (MREC) from the Caldeira Project. The team have done an excellent job in the development of the pilot plant – from acquisition of key equipment, recruitment of operators, construction and commissioning. This now places Meteoric in a small group of global companies with the ability to independently and consistently produce MREC product.

Mr Gale said the pilot plant’s design was based on extensive test work conducted at Australian government agency ANSTO, “including four continuous pilot runs of five days each”.

This foundation allows the pilot plant to expand upon the results achieved at ANSTO and simultaneously facilitate the training of plant operators. The pilot plant enables ongoing refinement of key project parameters and process optimisation, strengthening our understanding of the Caldeira Project. Combined with our expanding geological intellectual property, this pilot plant establishes a strong foundation for enhancing long-term project value.

Meteoric Resources shares were trading 3.3% higher at 15.5 cents on the news on Wednesday.

Macquarie has a 12-month price target of 39 cents on Meteoric Resources shares, saying its progress on the pilot plant “will enable the company to start off-take discussions with downstream customers, a key near-term catalyst”.

The post Rare earths company ticks off key production milestone appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.