Abstract ERES2017 Hellman FINAL
Abstract ERES2017 Hellman FINAL
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All content following this page was uploaded by Phillip Hellman on 08 August 2017.
Introduction
There has been a significant growth in exploration activity for rare earth element
("REE") deposits since the firming of prices began in 2003. Numerous deposits have
been subject to detailed evaluation, though during this period only one new
operation at Mt Weld, Western Australia has commenced production. One older
operation at Mountain Pass, USA, re-opened in 2012 though, due to low rare earth
prices, shut down in 2015. These two operations have, to date, been based on light
REE mineralisation. Chinese production dominates the world rare earth industry.
COGs used to report resources for most REE deposits are unrealistically low and
significantly less than those used by the only two recent Western operations. These
cut-offs typically result from attaching notional values from available metal prices
and applying them to all the REE as well as using unrealistically low production and
realization costs. Before production ceased at Mountain Pass, reserves were
reported above a 5.0% COG. Reserves at Mt Weld are reported above a 4.0% COG.
The Mt Weld deposit was put into production after a 30 year exploration history and
was only successfully drilled after 1991 once the regolith hosting the mineralisation
had been de-watered. This enabled the recovery of samples that had not suffered
the loss of fines. Its first reported resource estimates in 2002 subsequently achieved
close reconciliations within a few percent of actually mined material. Ordinary
Kriging was used with no need to resort to more complicated or advanced methods.
The first phase of mining of the CLD commenced in 2007 and was completed in May
2008 with 773Kt of high grade ore placed in stockpiles at TREO grades between 8%
and 26%. Grade control drilling at 10x10m underpinned this exercise and allowed
reconciliation with the 2002 and February 2008 estimates which were based on
coarser drilling patterns of approximately 20m spacing for Measured Resources,
30m-40m spacing for Indicated and 40m-80m for Inferred.
Mining reconciliations showed a 1.5% higher tonnage and 1.1% more grade than the
2002 resource estimates. An overall reconciliation for contained REO metal was +3%.
Comparison of the 2008 model with the grade control model resulted in 2.2% higher
tonnage and 1.1% less grade with an overall increase of 1.1% REO metal.
Conclusions
The significant growth in exploration activities directed at delineating rare earth
resources has resulted in a plethora of low grade deposits that, in general, have
grades that fall well below even the lower reporting cut-off grades of the only two
recent Western producers, Mountain Pass and Mt Weld. Early in the evaluation
process there should be a study of the phase distribution of the REE to help
understand the recoverability and ease of processing of the various ore types. The
value of a deposit will be governed by both the distribution of the individual REE and
the host minerals. It is likely that relatively soluble "ionic clay" type deposits, often
characterised by HREO enrichment, are far more widespread than is currently
realised. Although of lower grade, these may prove considerably more attractive
than higher grade deposits containing REE-bearing minerals that require aggressive
leaching conditions and high capital costs.
Reference
1. Lynas (2012) “Increase in Mt Weld Resource Estimate for the Central Lanthanide Deposit and
Duncan Deposit”. Public Release.