West Cobar Metals Limited (ASX: WC1) - The Salazar Metallurgical Results.
Rooster Talk Episode 74 is with Matt Szwedzicki, Managing Director of West Cobar Metals Limited (ASX: WC1)
In this episode of Rooster Talk, West Cobar is talking about their latest metallurgical results for their Salazar Rare Earth project. This is a very significant event and the released results are clearly positive.
The REE story is now all about the chemistry and the understanding is a progressing in real time. The industry players who are making in roads into their projects understand that there are a list if complexities that need to be tackled step by step.
The Salazar deposit is just one of a very few that are making economic sense with better than average grades and size. There is a industry myth that certain types of clay deposits are better than others but evidence and industry understanding now is showing that is not consistent with current science.
Recap of the West Cobar REE Story
West Cobar is a minerals exploration and development company focused on rare earths and battery minerals within Australia and the US. Their projects include:
The Salazar Rare Earths Clay Project is located on non-agricultural undeveloped state land approximately 120km north-east of the township and deep-water port of Esperance in Western Australia. The Newmont deposit, located on the easternmost tenement at Salazar, contains an estimated JORC Inferred Mineral Resource of 43.5Mt at 1192ppm TREO + Y2O3 (500ppm cut-off). The O’Connor prospect to the west of Newmont has potential to host further significant high-grade rare earths mineralization.
Samso's Conclusion
Recently I have heard that the Rare Earth market has been flat. The equity market has taken a bearish tone but I remind people that the global narrative is one that is needing more mining. The path to renewable energy and clean energy cannot be obtain with the current resources. Narratives to move into the 20230 Evolution is not a secret nor is it in the shadows.
Commodities such as Lithium, REE, Copper, Nickel and all the other base metals are going to be featured in the coming new electrical world. Many people will not agree but oil and gas will be featured as well. These statement are all a statement of fact. No amount of slow walking and disrupting traffic is going to change the flow of commodity use.
REE is one that is filled with mystic. Some commentary claim to know it all but I have bad news for them. The Geopolitical flavour, if maintained, will be the main driver for the REE industry. Once you go past that ticked box, the rest falls into the processing balancing equation. The basic point is what will it take to have an economical situation.
As we will all learn the sole leachability factor is not what makes a REE project good or bad. As West Cobar is showing in this release and what Matt is sharing with us, the process, of resource, grade, ability of the deposit for beneficiation, acid levels and acid consumption rates, are just some of the factors to be considered.
What seems to be very clear is that you need to have a point of difference. A difference that differentiates you having a big resource, a good grade, a leachable product and LREE vs HREE content. I believe that the fact that Salazar sits on an ultramafic base may be the difference required to be more valuable as they have more HREE value.
Chapters:
00:00 Start
00:20 Introduction
00:59 Matt discussing the Metallurgical Results
02:26 How good is the MREO Recovery ?
04:07 What Acid type works?
05:30 A Discussion on the Acid Strength and Recoveries.
10:52 The value of Rare Earths - LREE vs. HREE
11:55 Does the geology at Salazar enrich its REE components?
13:47 What is the Grade required to make a REE project work?
16:25 Beneficiating process is the dark horse?
18:31 Acid is Not the Magic Pill.
20:00 Matt's last thoughts on the release.
21:01 How should investors see West Cobar ?
22:23 Conclusion