Easily winnable REE Deposits • Edward Loye – Managing Director E-Tech Metals • e.loye@etechmetals.com • 14th May 2020 Disclaimer This document (“Presentation”) has been prepared by E-Tech Metals Ltd., a private limited company (“Company”) in connection with a presentation to prospective investors. This document and the information contained in it is solely the responsibility of the Company. The contents of this Presentation have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA") for the purposes of section 21 of FSMA. Reliance on this Presentation for the purpose of engaging in any investment activity may expose a prospective investor to a significant risk of losing all of their investment. 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By accepting this Presentation, you confirm that you are an Exempt Person and agree to be bound by the foregoing terms and limitations. www.etechmetals.com 2 2010s REE boom & stall • The rare earth element (REE) “boom” of 2010-2014 was initiated by a combination of Chinese policy changes, increased REE Mineralogy prices, rest-of-world (ROW) government intervention, and is king expanded media coverage, and general ignorance about the sector. • Pressure to provide a solution led to as many as 400 junior companies had entered the space by the early 2010s. • Mine to market requires years of planning, permitting, delineation, and engineering & metallurgical studies • Most ROW REE players have since stalled or disappeared completely after prices crashed in 2013/14. • Lynas’ Mount Weld deposit (currently in production) benefitted of a much longer lead time over its peers starting in 2001…and large financial support from JOGMEC Lynas’ Mount Weld deposit in Australia – in production for a reason www.etechmetals.com 3 Renewed interest in REE 2019/2020 • Off back of the battery metals boom for lithium & cobalt in recent years, investors have “joined the dots” and are increasingly realising that REEs (notably NdPr magnets in electric car motors) are part of the story as we endeavour to “decarbonise” our economies • US-China trade tensions. Governments are strategizing REEs again • Reinforcing the need to diversify supply • Sleeping dogs from the early 2010s are waking up… • ...puppies are being born • …but the same old problems remain www.etechmetals.com 4 The rare earth elements are not that rare! Ion adsorption clays Key fundamentals to a producing REE Mine - composition Deposit composition: Over 200 minerals have been identified as containing REE. However, only a few minerals possess REE in economic recoverable amounts (in bold) • bastnäsite-(Ce) (REE)CO3F • synchysite-(Ce) Ca(REE)(CO3)2F • parisite-(Ce) Ca(REE)2(CO3)3F2 • monazite-(Ce) (REE)PO4 • ancylite-(Ce) (Sr,Ca)REE(CO3)2(OH)H2O • loparite (Na,REE,Ca)(Ti,Nb)O3 • xenotime-(Y) YPO4 • euxenite REE(Nb,Ta,Ti)2O6 • steenstrupine Na14Ce6(Mn2+)2Fe3+)2Zr(PO4)7Si12O36(OH)2.3H2O • eudialyte Na15Ca6Fe3Zr3Si(Si25O73)(O,OH,H2O)3(Cl,OH)2 • “yttro-fluorite” (Ca, Y)F www.etechmetals.com 6 What is TREO? The untold story of mineral deportment Mineral Modal % To the left, an example The same principal applies to any Monazite 52 concentrate of 72.6% TREO. declared resource in terms of TREO Sounds good. grade from whole-rock assay i.e. drilling. Bastnasite 15.1 But where is that TREO Fluorite 11 sitting? “We are pleased to announce a indicated Fe-oxides 6.9 resource of 20 million tonnes grading Is it mono-mineralic (in terms 2% TREO at a 1% TREO cut-off” Ankerite 3.5 of REE) or poly-mineralic? This example, is poly- But where is that TREO sitting? Allanite 5.5 mineralic Barite 1.9 And can the minerals be Quartz 1.8 easily separated from the other non-REE minerals Mica/clays 1.8 (impurities)? Other 0.5 Crucial for further processing 100 www.etechmetals.com 7 What is TREO? The untold story of stoichiometry REE developers love pie-charts, particularly percentages of TREO But the values are misleading in terms of the speciation that is hosting the TREO. A monazite running 68% TREO (the other 32% phosphate, thorium portion of the mineral) then the Nd content of that monazite concentrate is 68% of 18% = 12.24% Nd A bastnäsite running at 58% TREO (the other 42% fluorcarbonate portion of the mineral) then the Nd content of that bastnäsite concentrate is 58% of 18% = 10.44% Nd NB. as previously explained the % of TREO displayed here could actually be hosted in a few REE minerals – and this is usually the case Individual RE oxides % of TREO www.etechmetals.com 8 Comparison of four main deposit types Greg Hall • ION ADSORPTION • MINERAL SANDS • CARBONATITES • ALKALINE ROCKS Greg Hall • Small / shallow – yet • Reasonably large • Reasonably large • Large broad environmental • But low grade • Higher grade • Lower grade impact • Eneabba, KeyWestern is that Australia REE • Fresh magmatic & • Hard rock http://www.amcconsultants.com.au/2010_jun.asp?ID=3 • Low grade, how leachable minerals (Weathered (monazite carbonatite) and weathered types • Complex mineralogy is it? xenotime) are by- • Usually light REE • Higher amounts heavy • easy to mine, leached ‘in products of Ti, Zr (Ce,La,Nd,Pr) REE (Y, SEG, Dy, Tb) situ’ mining. • Lower radioactive Th • Low radioactive Th content • Higher amounts heavy • High radioactive Th content (but variable from REE content deposit to deposit) • V. low radioactivity Comparison of four main deposit types Greg Hall • ION ADSORPTION • MINERAL SANDS • CARBONATITES • ALKALINE ROCKS Greg Hall • Small / shallow – yet • Reasonably large • Reasonably large • Large broad environmental • But low grade • Higher grade • Lower grade impact • Eneabba, KeyWestern is that Australia REE • Fresh magmatic & • Hard rock http://www.amcconsultants.com.au/2010_jun.asp?ID=3 • Low grade, how leachable minerals (Weathered (monazite carbonatite) and weathered types • Complex mineralogy is it? xenotime) are by- • Usually light REE • Higher amounts heavy • easy to mine, leached ‘in products of Ti, Zr (Ce,La,Nd,Pr) REE (Y, SEG, Dy, Tb) situ’ mining. • Lower radioactive Th • Low radioactive Th content • Higher amounts heavy • High radioactive Th content (but variable from REE content deposit to deposit) • V. low radioactivity Global REE resources there are many! – but challenges in bringing to market Map after Elliott et al., Ore Geology Reviews, 2018 NZ – sorry! >> Bayan Obo (Lovozero Linda Campbell Bayan Obo Mountain Pass Maoniuping Weishan 200 Ion adsorption deposits Indian Ion adsorption clays mineral sands Gakara Browns Range Rare Earth Mt Weld Mines in production Greg Hall The projects that are in production TODAY are conventional deposits – known mineralogy, easily winnable, and/or advantage of long lead-time Ion adsorption clays REE Trade Flows 2019 The ideal near-term REE deposit? 1. Deposit composition - high grade, conventional/proven REE ore mineral e.g. bastnäsite and/or monazite, with low actinide (Th, U) content. A high proportion of Nd & Pr. 2. Mining mechanics – well constrained deposit, efficient beneficiation and high recovery. 3. Deposit accessibility - geography, topography, politics, tax regime, proximity to infrastructure i.e. road/rail, water, electricity, shipping port. 4. Offtake agreement in place Ultimately resulting in an easily winnable product at low capital expenditure and low operating expenditure, with minimal and controlled environmental impact. www.etechmetals.com 14 Summary of REE processing routes $ $$ $$$ Summary of REE processing routes $ $$ $$$ REE processing bottle-necks “mine to magnet” 2 Major bottlenecks REE ore deposit Beneficiation of REE ore Beneficiation bottle-neck for many mine developers expensive multi- 1. REE mineral stage processing flow sheets needed concentrate $ to “win” the REE-bearing mineral, or minerals. Many unresolved or sub- economic $$...? 2. Intermediate “crack” to mixed REE product $$ 3. Separation into individual rare earth Separation bottle-neck in the REE 4. Production of rare oxides $$$$ business is separation into individual earth metals, rare earth oxides (REOs) – normally via compounds and metals solvent extraction (SX) $$$ $$$$$ www.etechmetals.com 17 Primary carbonatite - Mountain bastnäsite Pass rare from Mountain earth mine, California, USA Pass HC1 Box 224, 67750 Bailey Road, Mountain Pass, CA 92366 baryte quartz bastnäsite carbonates 1 cm Complex flow sheet – and this just to get to concentrate Carbonatite laterites – high grade, but a challenge to process Matt Demmer E.g. Weathered carbonatite mine at Mount Weld in Western Australia, with an average grade of 15.4 % REOxide Laterite contains goethite, crandallite, monazite 500 um www.lynascorp.com 10 m Iron-rich surface horizon Mountain Pass rare earth mine, California, USA Crandallitic horizon / monazite HC1 Box Mount Weld, WA weathered 224, 67750 Bailey Road, Mountain Pass, CA 92366 200 m 50 - Apatitic horizon (residual) carbonatite – flow sheet to 10 m Saprolite monazite concentrate Fresh carbonatite and associated silicate rocks Mineral sands – simpler flow sheet in comparison! Mountain Pass rare earth mine, California, USA HC1 Box 224, 67750 Bailey Road, Mountain Pass, CA 92366 Monazite by-product from Ti, Zn placers but….. Elephant in the Room: aka “ThUmbo” Radioactive thorium is associated with REE deposits – but this relationship is highly variable between deposit types Nd:Th ratios Mineral sands monazite 1:1 Carbonatite derived monazite can range from 2:1 to 30:1 Lower-levels of radioactivity can be dealt with and guidance is provided by the IAEA. Mine developers need to be transparent about their activity levels www.etechmetals.com 22 Nd:Th ratio – not all monazites are the same Mineral sand monazite 1:1 1 tonne of Nd produced = 1 tonne of radioactive thorium waste to deal with Hydrothermal monazite 2:1 1 tonne of Nd produced = 500kg of Th waste Fresh carbonatite monazite 20:1* 1 tonne of Nd produced = 50 kg of Th waste *Monazite in weathered carbonatites can alter to hydrated species rhabdophane with elevated Th content www.etechmetals.com 23 RADIOACTIVITY: contents of Th and U in minerals vary according to the deposit and deposit type. Low REE content minerals (eudialyte and apatite have low radioactivity) Xenotime (Carbonatite) Monazite (Carbonatite) Xenotime (Granite) Monazite (Granite) Xenotime (Vein) Monazite (Vein) Steenstrupine Bastnaesite Crandallite Synchysite Gadolinite Eudialyte Cerianite Euxenite Loparite Ancylite Fluorite Allanite Apatite Parsite 100.000 monazite 10.000 xenotime Average dosage range uSv/hour) 1.000 0.100 0.010 eudialyte apatite 0.001 Jon O’Callaghan using Zacek et al. 2009; Fujino et al. 2000; Mariano 1989; Sal’nikova et al. 2010; Graham 1955; Wall 2000; Jerden & Sinha 2006; Steenfelt & Bohse 1975 Melnik et al. 2003; Skoda & Novak 1978; Smellie et al. 1978; Raslan 2009; Demartin 1993; Segalstad & Larsen 1978; Kogarko 2002 Zhu & O’Nions 1999; Wall & Zaitzev 2008; Ekambaram et al. 1986; Makovicky 1980; Sorensen & Lundgaard 1966; Forster 2000; Wark & Millar 1993; Wall & Zaitzev 2008;Forster 1998 Comparison of rare earth deposits Ore type Energy for Grain size/ Difficulty of Chemicals (acid, Radioactivity: ore Amount of By-products crushing and beneficiation flotation reagent) mineral and host rock to be grinding rock moved* Carbonatite Med.- High Variable – 10 µm Flotation - Medium Low Not usually medium Weathered Medium 10 µm and finer Flotation - Low-med. Low Not usually carbonatite medium Alkaline rock High Variable - 1 µm and Variable Variable High Co-products larger common Ion adsorption None Beneficiation not Leaching, so can Low Low None clay (in-situ needed be high leaching) Mineral sand None-Low 10 – 100 µm Low High High from TiO2, zircon (placer) production By-product of High 100 µm-mm Medium Low High from fertiliser igneous apatite manufacture Red mud Bauxite n/a REE from red mud Medium? Low High from Al processing production *i.e. low grade = large amount of rock Although individual deposits vary, characteristics shaded green and in bold are generally advantageous to responsible sourcing, grey are less so and characteristics in unshaded cells are likely to be more problematic. Wall et al., 2017 Elements, What if you could have many of the advantages of easily mineable mineral sand monazite, But with much lower thorium content? Introducing Eureka Nd-Pr-REE project in Namibia www.etechmetals.com 27 Introduction to Eureka project in Namibia ➢ Eureka Nd-Pr-REE Project in Namibia. ➢ High-grade, easily winnable, conventional ore hosted within a primary carbonatite positioned next to a tarmac road 1 hr 30mins away from a container port. ➢ Corporate structure, government permits & landowner permissions are all in place Monazite ➢ Early metallurgical de-risking in 2016/2017 ➢ 19 RC Holes drilled in 2017 ➢ 1.2kms of trenching conducted in 2019 Monazite ➢ Phase 2 PFS is costed, permitted & ready to go ➢ Merging with Mila Resources PLC Sept 2020 Dolomite www.etechmetals.com 28 Eureka – primary magmatic carbonatite Monazite 2 cm Dolomite Monazite & magnetite forming at dolomite Alignment of monazite grain boundaries grains, (flow banding) www.etechmetals.com 29 RC drilling : Hole Eu005 Downhole optical viewer TREO per metre Monazite mineralised intercept (carb dyke) Clean contacts Monazite mineralised intercept (carb dyke) ? 0.55% 13.90% 11.85% 12.56% 2.7% 5.66% 7.93% 14.59% 6.96% 19 RC holes were sunk in 2017. Clean contacts 17 holes hit marked REE mineralisation Trenching – May 2019 Fresh monazite laden carbonatite in Heavy plant has no problem with access test pit in a vein 4m wide 1.2km of trenching in May 2019 completed. Additional carbonatites dykes uncovered across Area 1 & Area 3. New REE mineralisation uncovered Test pit on Area 1 10m x 5m x 4m south of Area 3 – “Acacia Extension” www.etechmetals.com 31 Introduction to Eureka project in Namibia www.etechmetals.com 32 Introduction to Eureka project in Namibia www.etechmetals.com 33 Modelling Eureka REE deposit 2019 www.etechmetals.com 34 Simple beneficiation. PRODUCT ✓ The beneficiation flow-sheet can be make or break for a REE project ✓ At Eureka homogeneous, coarse grained, monazite concentrate produced with consistent low- thorium content amenable to international shipping requirements. Nd:Th 20:1 ✓ Proven metallurgy by SGS Mineral Services in 2017: Gravity process alone proved to produce a concentrate using simple, “off the shelf” equipment: ✓ NO x-ray sorting required NO reagents, NO flotation required. Holman Magnetic Separation Final Monazite Shaking Product Table 60% TREO Eureka carbonatite First-pass gravity recovery of 75% monazite at -125 micron Further optimisation work to follow. www.etechmetals.com 35 Bulk sampling and pilot test-work 2019/2020 Multi-tonne bulk sample of carbonatite to Bond Equipment for upscale pilot-plant testing and design 36 Eureka Nd-Pr-REE deposit – in conclusion ➢ Mono-mineralic REE mineral concentrate (60% TREO) won by: low-cost open pit mining > crushing/grinding > gravity separation > magnetic separation ONLY ➢ Product contains up to 20 times less deleterious thorium than mineral sand derived monazite ➢ Situated in the mining corridor of Namibia in flat topography adjacent to arterial tarmac road (and rail) 100km from container port. ➢ Access to electricity and water ➢ First conceptual open-pits have been modelled (details in CPR ahead of relist) ➢ Currently in merger process with Mila Resources PLC – Relisting on the LSE in September 2020 37 Thank you! www.etechmetals.com 38
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