A REE Exploration Story - White Cliff Minerals Limited (ASX:WCN)

As we close off 2023, what a better way to end with Coffee with Samso Episode 193 is with Brett Hazelden, Managing Director and CEO of OD6 Metals Limited (ASX: OD6).

The Rare Earth story is now reaching a stage where it is now all about the chemistry. Most followers of the sector are now assuming and accepting that companies will report minerals resources that will be large enough to sustain any operations.

What is unknown is the cost of the chemistry that will bring in the revenue and profits at the end of the exercise. I think in this episode of Coffee with Samso, Brett Hazelden makes a very compelling case for the OD6 Metals story. There is a lot of confusion in the market in terms of what is the end game for these clay rare earth projects.

Brett is a metallurgist and he comes from experience when he talks about the downstream process. For those viewers who are pondering about the Rare Earth sector, this is a must watch episode of Coffee with Samso.

Samso Conclusion

As many of you who have followed the Samso platform, you would have been watching a lot of Rare Earth stories lately. There is no doubt that the rare earth industry is very complicated and confusing which is primarily being fuelled by a cloud of uncertainty on the future. This is something that I had as well but you would have heard me mention this very often, recently, that the trip to the rare earth conference in Canberra has pretty much cleared it up for me.

My optimism that was derived from the conference is not an indication that the sector is going on a bull run. My thoughts are that the reality of a strong future for the demand of rare earths will be very profitable for the companies that stick to their work and are able to sustain their path with funding.

The ability to attract funding over the period is critical. In some ways, you could look at the this time of the market as a reset of the rare earth story, in terms of valuation. This is the time to do your DYOR. For all investors, if the commodity boom is around the corner and the rare earth metals are part of that run, then you would want to do some good research now.

Chapters:

00:00 Start

00:20 Introduction

01:03 2023 recap

03:32 Understanding the chemistry

07:14 Lowering the costs of production

09:45 Discussion about ESG

11:27 What is driving the economics of these clay projects?

15:46 Difference between Australia and South America - grade and processing route?

19:38 Takeaways from the Canberra REECon

26:16 What’s on the cards for 2024?

32:03 Discussion about the rare earth market price

35:14 News flow

36:04 Final thoughts

39:46 Conclusion

Coffee with Samso 192 has Andrew Radonjic talking Rare Earths at the Jupiter project.

Venture Minerals Limited (ASX: VMS) is now at the crossroads of emerging as a Rare Earth player in what is a complex and ultimately future-proofing sector. I labeled Venture Minerals as a Targeted Diversified Mineral Explorer in my very first interview with Andrew Radonjic, the Managing Director way back in October 2020, and this is another prime example of that business approach.

The rare earth sector has had a lot of attention in the last 24 months and like all commodities, it is going through turbulent times. Samso has had the greatest privilege to have interviewed many of these stories over time and I see Venture Minerals as an interesting change to the current scene

On the back of the recent announcement by Venture Minerals on the 29th of November 2023, entitled Jupiter Delivers over 7,000 ppm TREO assays from Maiden RC Drill Program, the company has raised additional funding to work on the project. In the current market, this is a strong vote of confidence for the potential of the Brothers REE project.

In this episode, Andrew Radonjic shares with us his thoughts on the project and a good insight into the facts of the recent drilling results. In combination with the historical exploration activities, the picture of why Venture Minerals feels this project will have a future is material for viewers.

Check out the conversation with Andrew Radonjic below:

Samso's Conclusion

As I have mentioned, we have had a good amount of content that is related to the rare earth sector, and my thoughts, which are consistent with most commentators, is that every REE project is unique. The key is what is at the bottom line of the project. Does it make money when the cookie crumbles?

The Jupiter target is a clay-hosted rare earth project and as Andrew mentioned, there has been little metallurgical work done but these days, we are very comfortable assuming that it is a typical clay-hosted ree system. I don't think that this is a unique clay-hosted system but what will make it different is the logistical and the potential grade and tonnage.

The other point of difference is a different social license. Most of the other projects have to deal with private landowners and the existence of the population. It may not be obvious now but I think in the long run, the bottom line will be noted.

This is not to say that the others will not make money. As I measure the landscape for this sector, the companies that are left standing in the long term will be big winners. Fresh investors with more money in the bank will go a long way to becoming a long-term player.

Chapters:

00:00 Start

00:20 Introduction

00:54 What is happening with the Jupiter REE Target?

03:56 Does alkaline intrusion play a part in Jupiter?

06:50 Progress on the drilling at Jupiter

14:11 What sets VMS apart from the others?

25:17 Comments for existing shareholders

29:37 Why did the recent new investors buy into the VSM Story?

30:57 News flow

33:34 Conclusion