West Cobar’s Newmont Deposit contains a large Indicated and Inferred REE Mineral Resource which stands at 83Mt at 1117 ppm total rare earth oxide (TREO) as well as a TiO2 Inferred Mineral Resource (29Mt at 5.0% TiO2) and an alumina Inferred Mineral Resource (4Mt at 29.6% Al2O3).
A maiden Scandium Mineral Resource estimate was completed at the Newmont deposit resulting in 12 Mt of 103 ppm Sc Inferred Mineral Resource (JORC 2012). Preliminary metallurgical testwork reports high scandium leach recovery up to 81.2% at atmospheric pressure. Scandium may add significant value to rare earths, titanium dioxide and alumina co-products at Newmont. The conceptual flowsheet which the Company is developing benefits from complementary revenue streams of ilmenite, REE and scandium.
In addition, examination of historical drilling at the Salazar REE project has identified significant intersections of gallium (Ga) from near surface and lying within the Indicated + Inferred Mineral Resource at the Newmont REE Deposit including:
A phase two air core program was designed to extend and infill the existing Mineral Resources of REE, TiO2 and scandium at the Newmont deposit as well as explore E63/1496 and E63/2056 to the south of the Newmont deposit. 63 air core holes for a total of 2,217m were drilled.
Extensive high grade critical mineral intercepts were obtained in near surface saprolite including:
Exceptional intercepts of TiO2 include:
High grade Scandium intercepted, including:
High grade aluminium intercepts such as 10m of 34.0% Al2O3 (18.0% Al) from 10m in SZA297, support the current Alumina Mineral Resource.
The additional information derived from drilling during 2022/2023 and the acquisition of exploration licences adjacent to the Newmont deposit allowed an updated Exploration Target to more fully reflect the potential of West Cobar’s groundholding.
The revised Exploration Targets, inclusive of existing Indicated and Inferred Mineral Resources comprise 800Mt to 1250Mt of 1050ppm to 1350ppm TREO, and 101Mt to 154Mt of 4.6% to 5.4% TiO2 (Tables 1 and 2).
The Salazar Project Exploration Targets are conceptual in nature based on reasonable grounds and assumptions described in West Cobar Metals’ announcement to the ASX of 22 January 2024, ‘Salazar Exploration Target update’. There has been insufficient exploration to estimate a Mineral Resource from these exploration targets and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Current Mineral Resources and Exploration Targets for REEs and TiO2 are tabulated below.
| Cut-off (TREO ppm) | Deposit | Category | Tonnes (Mt) | TREO8 (ppm) | Pr6O11 ppm | Nd2O3 ppm | Dy2O3 ppm | Tb4O7 ppm |
|---|---|---|---|---|---|---|---|---|
| 600 | Newmont | Indicated | 39 | 1216 | 51 | 206 | 36 | 6.1 |
| Inferred | 44 | 1029 | 46 | 180 | 29 | 5.1 | ||
| Indicated + Inferred Mineral Resources | 83 | 1117 | 48 | 192 | 33 | 5.6 | ||
| Exploration Target | 110 to 210 | 1000 to 1200 | 43 to 52 | 173 to 209 | 30 to 36 | 5 to 6 | ||
| O’Connor | Inferred Mineral Resources | 107 | 1216 | 61 | 195 | 11 | 2.3 | |
| Exploration Target | 500 to 850 | 1100 to 1300 | 55 to 67 | 175 to 215 | 10 to 12 | 2 to 3 | ||
| TOTAL Indicated & Inferred Mineral Resources + Exploration Targets | 800 to 1250 | 1050 to 1350 | 53 to 62 | 179 to 209 | 15 to 17 | 3 to 4 | ||
| Cut-off (Ti %) | Category | Mt | Ti% | TiO2 % | TREO ppm | FeO % |
|---|---|---|---|---|---|---|
| 2% | Total Inferred Mineral Resource | 29 | 3.0 | 5.0 | 942 | 12.0 |
| Exploration Target | 72 to 125 | 2.8 to 3.2 | 4.6 to 5.4 | 900 to 1000 | 10 to 13.5 | |
| Total Inferred Mineral Resources + Exploration Target | 101 to 154 | 2.8 to 3.2 | 4.6 to 5.4 | 900 to 1000 | 10 to 13.5 |
West Cobar continues to advance the Newmont REE-TiO2-Scandium-Alumina deposit by developing feasible extraction process flowsheets for the key commodities. The conceptual flowsheet which the Company is developing benefits from complementary revenue streams of ilmenite, REE and scandium.
Metallurgical testwork undertaken indicates the REE clay minerals are amenable to acid leach extraction at low temperatures and atmospheric pressure. The project is advanced with over eight years of testwork, and studies completed with well-known research and technical institutions.
West Cobar has obtained positive results from recent works on the metallurgical characterisation of the Newmont Deposit, which shows that an ilmenite concentrate can likely be produced.
Importantly, the ilmenite concentrate was generated by the relatively simple and standard industry processes of size classification, heavy liquid separation and magnetic separation.
By removing the Ti rich material, the remaining material is a far cleaner feed for the REE stream. Options for this stream include leaching, to create a mixed rare earth carbonate product, with additional potential extraction of the very high value scandium.
Excellent scandium leaching results using HCl and H2SO4 were achieved during recent testwork:
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431 Roberts Road,
Subiaco WA 6008
T. +61 8 9287 4600
E. info@westcobarmetals.com.au
