11 September 2024
Rainbow Rare Earths
Limited
("Rainbow" or "the Company")
LSE: RBW
Updated JORC-compliant
Mineral Resource Estimate ("MRE") for Phalaborwa
·
Updated MRE confirms a 15%
increase in the overall size of the Phalaborwa Resource, adding an
additional two years to the project life.
·
Total Measured, Indicated
and Inferred Resource of 35.0 Mt at 0.44% TREO, with a near
doubling in the material now classified as
Measured.
·
The light rare earth
elements ("REEs") neodymium ("Nd") and praseodymium ("Pd")
represent 29% and the heavy REEs dysprosium ("Dy") and terbium
("Tb") represent 1% and 0.3% respectively - all four of these REEs
are considered critical minerals essential to the green energy
transition.
·
The MRE now reports the full
range of recoverable REEs that may have economic value for Rainbow
in the future, being the SEG group (samarium, europium and
gadolinium), lanthanum ("La") and cerium ("Ce").
·
At spot pricing, including
Nd/Pr at ca. US$62.5/kg[1], the MRE has an
in-situ metal oxide value of ca. US$3.7 billion REEs, with
considerable upside based on the forecast strong demand outlook for
permanent magnet REEs.
NEWS
RELEASE
Further to the Resource Update released on 26
February 2024, today's announcement reflects the publication of a
new MRE for Phalaborwa prepared in accordance with the guidelines
of the JORC Code (2012 Edition) ("JORC"). The full MRE can be
accessed at https://www.rainbowrareearths.com/project/phalaborwa/.
As indicated in the February announcement, the
application of updated bulk density estimates and additional
drilling for the Phalaborwa phosphogypsum stacks has led to an
increase in the Resource by 15% from 30.4 Mt to 35.0 Mt, reported
at a 0.2% TREO cut-off grade. At projected production rates, this
has extended the project life from 14 years to 16 years.
George
Bennett, CEO of Rainbow, commented: "The publication of an updated JORC-compliant Resource for
Phalaborwa reaffirms the huge value intrinsic to this project,
which contains economic quantities of all four of the critical
magnet REEs. It also points to the potential for value from other
recoverable REEs, which are currently not included in our project
economics, and the MRE has an in-situ metal oxide value of ca.
US$3.7 billion even at today's lower spot prices. It's worth noting
that this is a very different type of Resource to that of a hard
rock mining project, sitting at surface with a relatively
homogenous distribution in the phosphogypsum stacks. Therefore, we
intend to process the entirety of the stacks, allowing us to
generate value from the full 35 Mt Resource."
The four most economically important REEs,
being Nd, Pr, Dy and Tb, together represent over 30% of the basket
by volume at Phalaborwa and 96% by value. These REEs have been
designated globally as critical minerals for the green energy
transition due to their use in the permanent magnets essential for
electric vehicles and wind turbines. Furthermore, they are
considered to be among those critical minerals most at risk in
terms of supply chain vulnerabilities.
For the first time, the MRE now includes the
full range of recoverable REEs that may have economic value for
Rainbow in the future, being the SEG group, La and Ce. At spot
prices, the MRE including these ancillary REEs has an in-situ metal
oxide value of ca. US$3.7 billion. We have also confirmed that the
process residue gypsum is a saleable product, allowing Rainbow to
realise further value from the Resource.
The updated MRE confirms very low levels of
radioactive elements, further attesting to the 'green' credentials
of this project, which will recover REEs from a waste product and
rehabilitate an industrial site over time. Uranium is estimated at
1.8 ppm and thorium is estimated at 48ppm, at which levels they can
be considered trace elements.
Measured,
Indicated and Inferred Mineral Resource Estimate
The MRE is located in two adjacent historically
processed phosphogypsum stacks (termed Stack A and Stack B) on the
Phalaborwa project site. The MRE update was completed in July 2024
and is based on additional drilling and sampling completed during
2023. Samples were initially sent to Ardaman and
Associates, Inc., a Tetra Tech Company ("Ardaman"), in
the USA for bulk density calculations before being shipped back to
SGS in South Africa for grade assays.
Notes:
1. TREO = Total
Rare Earth Oxide; ppm = parts per million
2. Resource
figures are reported gross; Rainbow owns an 85% interest in the
Phalaborwa project, with an option to increase ownership to
100%
3. The Mineral
Resource is reported at a nominal 0.2% TREO cut-off
grade
4. No constraining
shell is required as stacks are above ground level and no selective
reclamation is required
5. Mineral
resources are not mineral reserves and do not have demonstrated
economic viability
6. The 'Total'
rows do not always tally due to rounding
7. The full
Resource tables are set out in the Appendix
The MRE is classified as Measured, Indicated
and Inferred Mineral Resources of 46%, 43% and 11% deposit tonnage
respectively (July 2023 Resource: Measured, Indicated
and Inferred Mineral Resources of 24%, 53% and 23% deposit tonnage
respectively), representing increased confidence as a result of
recent infill drilling.
The MRE is noted as being relatively homogenous
in nature, with no selective reclamation of the stacks required as
99.7% of the phosphogypsum tonnage is above the 0.2% TREO cut-off.
Due to the nature of the Resource sitting at surface and the
associated water limiting drill accessibility, Rainbow is not
planning to do further infill drilling and the Inferred portion
will be included in the project's forthcoming Definitive
Feasibility Study. It is anticipated that the full Resource will be
processed as part of the project life.
Competent
Persons Statement
The information in this report that relates to
the Mineral Resources for the Phalaborwa project is based on, and
fairly represents, information compiled or reviewed by Mr Malcolm
Titley, a Competent Person who is a Member of the Australasian
Institute of Mining and Metallurgy and the Australian Institute of
Geoscientists. Mr Titley is employed by Maja Mining Limited, an
independent consulting company.
Mr Titley has sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr Titley consents to the inclusion of
information from this report in Rainbow public releases using his
information in the form and context in which it appears.
For further
information, please contact:
|
Rainbow Rare
Earths Ltd
|
Company
|
George Bennett
Pete Gardner
|
+27 82 652 8526
|
|
|
IR
|
Cathy Malins
|
+44 7876 796 629
cathym@rainbowrareearths.com
|
|
Berenberg
|
Broker
|
Matthew Armitt
Jennifer Lee
|
+44 (0) 20 3207 7800
|
|
Stifel
|
Broker
|
Ashton Clanfield
Varun Talwar
|
+44 20 7710 7600
|
|
Tavistock
Communications
|
PR/IR
|
Charles Vivian
Tara Vivian-Neal
|
+44 (0) 20 7920 3150
rainbowrareearths@tavistock.co.uk
|
Notes to
Editors:
About
Rainbow:
Rainbow Rare Earths aims to be a forerunner in
the establishment of an independent and ethical supply chain of the
rare earth elements that are driving the green energy transition.
It is doing this successfully via the identification and
development of secondary rare earth deposits that can be brought
into production quicker and at a lower cost than traditional hard
rock mining projects, with a focus on the permanent magnet rare
earth elements neodymium and praseodymium, dysprosium and
terbium.
The Company is focused on the development of
the Phalaborwa Rare Earths Project in South Africa and the earlier
stage Uberaba Project in Brazil. Both projects entail the recovery
of rare earths from phosphogypsum that occurs as the by-product of
phosphoric acid production, with the original source rock for both
deposits being a hardrock carbonatite.
The Phalaborwa Preliminary Economic Assessment
has confirmed strong base line economics for the project, which has
a base case NPV10 of US$627 million, an average EBITDA operating
margin of 75% and a payback period of < two years.
More information is available at
www.rainbowrareearths.com.
Appendix
MRE - REE
Proportions
|
JORC 2012
|
Stack
|
Mt
|
TREO %
|
Nd
|
Pr
|
NdPr
|
Dy
|
Tb
|
Eu
|
Sm
|
Gd
|
La
|
Ce
|
LREO
|
HREO
|
SEGO
|
Ga
|
F
|
Th
|
U
|
Dry BD
|
Moisture
|
|
Measured
|
Stack A
|
10.8
|
0.4
|
23.6
|
5.7
|
29.3
|
1.0
|
0.3
|
0.8
|
4.0
|
3.0
|
17.4
|
41.6
|
92.2
|
5.5
|
7.8
|
10
|
0.8
|
48.6
|
1.7
|
1.37
|
25
|
|
|
Stack B
|
5.2
|
0.5
|
23.3
|
5.9
|
29.1
|
0.9
|
0.3
|
0.8
|
3.9
|
2.9
|
17.4
|
42.2
|
92.5
|
5.4
|
7.6
|
9
|
0.7
|
45.0
|
2.1
|
1.33
|
27
|
|
|
Total
|
16.0
|
0.5
|
23.5
|
5.7
|
29.2
|
1.0
|
0.3
|
0.8
|
4.0
|
3.0
|
17.4
|
41.8
|
92.3
|
5.4
|
7.7
|
10
|
0.7
|
47.4
|
1.8
|
1.36
|
26
|
|
Indicated
|
Stack A
|
11.0
|
0.4
|
23.3
|
5.5
|
28.8
|
1.0
|
0.3
|
0.8
|
3.9
|
2.9
|
17.2
|
42.2
|
92.2
|
5.4
|
7.6
|
11
|
0.6
|
47.7
|
1.8
|
1.46
|
22
|
|
|
Stack B
|
3.9
|
0.5
|
23.2
|
5.7
|
28.8
|
1.0
|
0.3
|
0.8
|
3.9
|
2.8
|
17.6
|
42.4
|
92.7
|
5.2
|
7.5
|
10
|
0.7
|
42.9
|
2.0
|
1.31
|
27
|
|
|
Rubble/
Mixed
|
0.4
|
0.3
|
25.3
|
5.4
|
30.7
|
1.0
|
0.3
|
0.8
|
4.5
|
2.8
|
16.4
|
40.5
|
92.2
|
5.3
|
8.1
|
6
|
1.3
|
28.5
|
1.9
|
1.42
|
27
|
|
|
Total
|
15.2
|
0.4
|
23.3
|
5.6
|
28.9
|
1.0
|
0.3
|
0.8
|
3.9
|
2.9
|
17.3
|
42.2
|
92.3
|
5.4
|
7.6
|
11
|
0.7
|
46.0
|
1.9
|
1.42
|
24
|
|
Inferred
|
Stack A
|
1.7
|
0.4
|
23.4
|
5.5
|
28.9
|
1.0
|
0.3
|
0.8
|
3.9
|
2.8
|
17.0
|
42.5
|
92.3
|
5.3
|
7.5
|
9
|
0.6
|
46.0
|
2.1
|
1.48
|
21
|
|
|
Stack B
|
1.6
|
0.4
|
23.2
|
5.5
|
28.7
|
1.0
|
0.3
|
0.8
|
4.0
|
2.8
|
17.7
|
42.1
|
92.5
|
5.3
|
7.7
|
11
|
0.7
|
40.2
|
2.0
|
1.33
|
27
|
|
|
Rubble/
Mixed
|
0.6
|
0.3
|
24.3
|
5.8
|
30.1
|
0.9
|
0.3
|
0.8
|
4.6
|
2.7
|
17.3
|
40.5
|
92.5
|
5.2
|
8.2
|
5
|
1.1
|
31.1
|
1.5
|
1.42
|
25
|
|
|
Total
|
3.8
|
0.4
|
23.4
|
5.6
|
29.0
|
1.0
|
0.3
|
0.8
|
4.0
|
2.8
|
17.3
|
42.1
|
92.4
|
5.3
|
7.7
|
9
|
0.7
|
41.4
|
2.0
|
1.40
|
24
|
|
Grand Total
|
|
35.0
|
0.4
|
23.4
|
5.6
|
29.0
|
1.0
|
0.3
|
0.8
|
4.0
|
2.9
|
17.3
|
42.0
|
92.3
|
5.4
|
7.7
|
10
|
0.7
|
46.1
|
1.8
|
1.39
|
25
|
Notes
1. TREO =
Total Rare Earth Oxide, HREO = Heavy Rare Earth Oxide, LREO = Light
Rare Earth Oxide, SEGO = SEG Oxide
2. The
Mineral Resource is reported at a 0.2% TREO cut-off
grade
3. The
individual REEs set out in the table refer to the following oxides,
set out as % proportions of TREO; Nd2O3, Pr6O11, Dy2O3, Tb4O7,
Eu2O3, Sm2O3, Gd2O3, La2O3, Ce2O3, Ce2O3
4. NdPr,
LREO, HREO and SEGO are set out as % proportions of TREO
5. Ga, Th, U
are shown as parts per million (ppm), F is shown as
%
6. Moisture
content is set out as %
7. No
constraining shell is required as stacks are above ground
level
8. Adequate
initial metallurgical testwork and financial analysis has been
completed to satisfy reasonable prospects for economic
evaluation
9. The
favoured mineral processing route uses a continuous ion exchange
(to remove impurities) followed by REE leach and REE refining to
produce three saleable products: neodymium/praseodymium oxide,
dysprosium oxide, and terbium oxide; all processing is expected to
be on-site at the Phalaborwa Mining Complex adjacent to the
phosphogypsum stacks
10. Tonnages are rounded to
the nearest 100,000 tonnes to reflect this as an
estimate
MRE - REE
Grades
|
JORC 2012
|
Stack
|
Mt
|
TREO
%
|
LREO
%
|
HREO
%
|
SEGO
%
|
F
%
|
Th
ppm
|
U
ppm
|
Nd2O3
%
|
Pr6O11
%
|
Dy2O3
%
|
Tb4O7
%
|
Sm2O3
%
|
Eu2O3
%
|
Gd2O3
%
|
La2O3
%
|
Ce2O3
%
|
Dry BD
|
Moisture
|
|
Measured
|
Stack
A
|
10.8
|
0.44
|
0.41
|
0.02
|
0.03
|
0.8
|
49
|
1.7
|
0.104
|
0.025
|
0.004
|
0.001
|
0.018
|
0.004
|
0.013
|
0.077
|
0.184
|
1.37
|
25
|
|
|
Stack
B
|
5.2
|
0.47
|
0.43
|
0.02
|
0.04
|
0.7
|
45
|
2.1
|
0.109
|
0.028
|
0.004
|
0.002
|
0.018
|
0.004
|
0.014
|
0.081
|
0.198
|
1.33
|
27
|
|
|
Total
|
16.0
|
0.45
|
0.42
|
0.02
|
0.03
|
0.7
|
47
|
1.8
|
0.106
|
0.026
|
0.004
|
0.001
|
0.018
|
0.004
|
0.013
|
0.078
|
0.188
|
1.36
|
26
|
|
Indicated
|
Stack
A
|
11.0
|
0.42
|
0.39
|
0.02
|
0.03
|
0.6
|
48
|
1.8
|
0.098
|
0.023
|
0.004
|
0.001
|
0.016
|
0.003
|
0.012
|
0.072
|
0.177
|
1.46
|
22
|
|
|
Stack
B
|
3.9
|
0.46
|
0.42
|
0.02
|
0.03
|
0.7
|
43
|
2.0
|
0.106
|
0.026
|
0.004
|
0.001
|
0.018
|
0.004
|
0.013
|
0.080
|
0.193
|
1.31
|
27
|
|
|
Rubble/
Mixed
|
0.4
|
0.30
|
0.28
|
0.02
|
0.02
|
1.3
|
29
|
1.9
|
0.075
|
0.016
|
0.003
|
0.001
|
0.013
|
0.002
|
0.008
|
0.050
|
0.123
|
1.42
|
27
|
|
|
Total
|
15.2
|
0.43
|
0.39
|
0.02
|
0.03
|
0.7
|
46
|
1.9
|
0.099
|
0.024
|
0.004
|
0.001
|
0.017
|
0.003
|
0.012
|
0.074
|
0.180
|
1.42
|
24
|
|
Inferred
|
Stack
A
|
1.7
|
0.41
|
0.38
|
0.02
|
0.03
|
0.6
|
46
|
2.1
|
0.097
|
0.023
|
0.004
|
0.001
|
0.016
|
0.003
|
0.012
|
0.071
|
0.176
|
1.48
|
21
|
|
|
Stack
B
|
1.6
|
0.44
|
0.41
|
0.02
|
0.03
|
0.7
|
40
|
2.0
|
0.103
|
0.025
|
0.004
|
0.001
|
0.018
|
0.004
|
0.013
|
0.079
|
0.188
|
1.33
|
27
|
|
|
Rubble/
Mixed
|
0.6
|
0.31
|
0.28
|
0.02
|
0.02
|
1.1
|
31
|
1.5
|
0.074
|
0.018
|
0.003
|
0.001
|
0.014
|
0.003
|
0.008
|
0.053
|
0.125
|
1.42
|
25
|
|
|
Total
|
3.8
|
0.41
|
0.38
|
0.02
|
0.03
|
0.7
|
41
|
2.0
|
0.096
|
0.023
|
0.004
|
0.001
|
0.016
|
0.003
|
0.012
|
0.071
|
0.173
|
1.40
|
24
|
|
Grand Total
|
|
35.0
|
0.44
|
0.40
|
0.02
|
0.03
|
0.7
|
46.0
|
1.8
|
0.102
|
0.025
|
0.004
|
0.001
|
0.017
|
0.003
|
0.013
|
0.075
|
0.183
|
1.39
|
25
|
Notes
1. TREO =
Total Rare Earth Oxide, HREO = Heavy Rare Earth Oxide, LREO = Light
Rare Earth Oxide, SEGO = SEG Oxide
2. The
Mineral Resource is reported at a 0.2% TREO cut-off
grade
3. Moisture
content is set out as %
4. No
constraining shell is required as stacks are above ground
level
5. Adequate
initial metallurgical testwork and financial analysis has been
completed to satisfy reasonable prospects for economic
evaluation
6. The
favoured mineral processing route uses a continuous ion exchange
(to remove impurities) followed by REE leach and REE refining to
produce three saleable products: neodymium/praseodymium oxide,
dysprosium oxide, and terbium oxide; all processing is expected to
be on-site at the Phalaborwa Mining Complex adjacent to the
phosphogypsum stacks
7. Tonnages
are rounded to the nearest 100,000 tonnes to reflect this as an
estimate
MRE - Contained
Metal
|
|
|
|
Contained Metal
(tonnes)
|
|
|
|
JORC 2012
|
Stack
|
Mt
|
Nd2O3
|
Pr6O11
|
Dy2O3
|
Tb4O7
|
Sm2O3
|
Eu2O3
|
Gd2O3
|
La2O3
|
Ce2O3
|
Dry BD
|
Moisture
|
|
Measured
|
Stack
A
|
10.8
|
11,214
|
2,704
|
466
|
152
|
1,896
|
379
|
14
|
8,272
|
19,831
|
1.37
|
25
|
|
|
Stack
B
|
5.2
|
5,721
|
1,439
|
228
|
79
|
953
|
198
|
7
|
4,261
|
10,345
|
1.33
|
27
|
|
|
Total
|
16.0
|
16,935
|
4,143
|
695
|
230
|
2,849
|
577
|
21
|
12,533
|
30,176
|
1.36
|
26
|
|
Indicated
|
Stack
A
|
11.0
|
10,724
|
2,545
|
455
|
145
|
1,797
|
371
|
13
|
7,929
|
19,436
|
1.46
|
22
|
|
|
Stack
B
|
3.9
|
4,109
|
1,009
|
168
|
54
|
693
|
142
|
5
|
3,115
|
7,515
|
1.31
|
27
|
|
|
Rubble/Mixed
|
0.4
|
275
|
60
|
11
|
4
|
50
|
9
|
0
|
183
|
453
|
1.42
|
27
|
|
|
Total
|
15.2
|
15,109
|
3,615
|
634
|
202
|
2,540
|
521
|
19
|
11,227
|
27,404
|
1.42
|
24
|
|
Inferred
|
Stack
A
|
1.7
|
1,602
|
379
|
66
|
20
|
264
|
55
|
2
|
1,169
|
2,920
|
1.48
|
21
|
|
|
Stack
B
|
1.6
|
1,624
|
388
|
68
|
22
|
280
|
58
|
2
|
1,241
|
2,953
|
1.33
|
27
|
|
|
Rubble/Mixed
|
0.6
|
420
|
100
|
16
|
6
|
80
|
15
|
0
|
299
|
708
|
1.42
|
25
|
|
|
Total
|
3.8
|
3,646
|
867
|
151
|
48
|
624
|
127
|
4
|
2,710
|
6,580
|
1.40
|
24
|
|
Grand Total
|
|
35.0
|
35,689
|
8,624
|
1,479
|
480
|
6,012
|
1,225
|
44
|
26,469
|
64,161
|
1.39
|
25
|
Notes
1. The
Mineral Resource is reported at a 0.2% TREO cut-off
grade
2. Metal
Content is quoted to the nearest ton
3. Moisture
content is set out as %
4. No
constraining shell is required as stacks are above ground
level
5. Adequate
initial metallurgical testwork and financial analysis has been
completed to satisfy reasonable prospects for economic
evaluation
6. The
favoured mineral processing route uses a continuous ion exchange
(to remove impurities) followed by REE leach and REE refining to
produce three saleable products: neodymium/praseodymium oxide,
dysprosium oxide, and terbium oxide; all processing is expected to
be on-site at the Phalaborwa Mining Complex adjacent to the
phosphogypsum stacks
7. Tonnages
are rounded to the nearest 100,000 tonnes to reflect this as an
estimate