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Australian Strategic Materials (ASX:ASM) has today reported “very encouraging” results from the cost-effective heap leach metallurgical testing it’s been running as part of its Rare Earth Options Assessment (REOA) in Dubbo recently.
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The REOA evaluated less capital-intensive ways to recover light (neodymium and praseodymium) and heavy (dysprosium and terbium) rare earth elements in Dubbo with shorter implementation. Several cost-saving options were quickly identified, including atmospheric tank and heap leaching methods.
“In the current rare earth market, it’s essential we explore more cost-effective and faster pathways to deliver the Dubbo Project and ensure strong economics,” ASM’s managing director, Rowena Smith, explained to shareholders.
Early results have been “very encouraging” for both light and heavy rare earth elements, Ms Smith said, and may simplify operating costs for the explorer.
Recent metallurgical testworks and engineering studies have suggested the same.
With capital costs chops on the table, the company is now fast-tracking a Heap Leach Scoping Study to look closer at the economic viability – though ASM is already confident considering positive recovery was achieved for magnetic rare earth elements from bottle roll testing at three of ASM’s major Dubbo Project composites.
One key focus in the study will be how leaching can be leveraged to turn the Dubbo Project into a “phased approach” – this would cut down the need for an energy-intensive roaster and all associated infrastructure in early phases.
How quickly revenue generation can be turned on is also a high priority in the studies.
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When it comes to a timeline for all this testing, Australian Strategic Materials is hopeful things should be wrapped up by Q4 2025. Work will then flow into a program of column leaching testwork with similar cost-saving goals.
ASM will open Tuesday’s flat trading day at 62cps after a -12.7% drop yesterday.
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