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Australian Rare Earths (ASX:AR3) test work reveals pathway to “significantly” lower processing costs

ASX News, Materials
ASX:AR3      MCAP $15.86M
16 May 2023 11:35 (AEDT)

Koppamurra rare earths project. Source: Australian Rare Earths

Breakthrough test work has highlighted the potential to “significantly” lower processing costs at Australian Rare Earths’ (AR3) Koppamurra project in South Australia.

“Highly successful” metallurgical tests carried out by industry experts ANSTO found removing larger ore particles before processing would increase the head grade significantly for little reduction in total recovered rare earths.

It also showed the vast majority of the valuable rare earths occur in smaller particles.

As a result, separating the ore through simple beneficiation would allow the larger particles to be removed from the downstream process.

The company described the results as “transformational”, demonstrating the potential to reduce re-agent consumption, simplify materials handling and reduce the volume of the leach vessels, therefore reducing capital and operating costs significantly.

AR3 Acting Managing Director Rick Pobjoy welcomed the results.

“This means we could substantially reduce the amount of ore we process substantially, while still maintaining 90 per cent of the valuable rare earths,” he said.

“The potential impact on processing costs and therefore the overall economics of the project and shareholder returns are extremely substantial.”

Mr Pobjoy added that further work is underway to grow the Koppamurra resource.

Shares in AR3 were down 1.54 per cent and trading at 32 cents at 11:17 am AEST.

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