LKY - update on rare earth processing tech with Columbia University
Our US critical minerals Investment Locksley Resources (ASX: LKY) just put out an update on its US rare earths processing partnership with Columbia University.
Before we get to that, a quick overview of what LKY’s doing right now.
LKY’s project sits just 6km away from $15BN MP Materials Mountain pass Mine and the project’s border each other, LKY actually has some ground within MP’s project area.
We are Invested in LKY to see it bring back into production its Desert Antimony Mine - which produced antimony during both WW1 and WW2. (source)
Then to apply the processing tech being worked on to produce US mined, US processed antimony end products.
LKY’s just done a round of drilling on that project - so assays should be due any day now.
While all that happens, LKY’s also been drilling its rare earth prospects that sit inside the blocks owned by $15BN MP Materials - assays from that project could drop any minute too:
(source)
Today, LKY had an update out on its rare earths processing partnership with Columbia.
Back in November, LKY partnered with Columbia University to develop rare earth processing technology.
The partnership has now successfully produced conceptual flowsheets for bastnaesite-style mineralisation which includes innovative leaching and metallisation options.
Progress has also been made in creating rapid detection technologies for on-site mineral analysis and is exploring molten salt electrolysis as an alternative option to traditional thermal reduction.
By running this research in parallel with initial exploration, LKY is rapidly positioning itself to evaluate economic and development pathways much earlier than usual.
We have covered this prior as a part of LKY’s "mine-to-market" strategy to re-establish a domestic U.S. supply chain for critical materials.
We have dubbed it a “back to front” strategy which we think is good because it gives LKY the best chance to progress to cashflow in a capital efficient way.
Importantly because this is when demand is still high and supply has yet to come online, while prices are likely still high.
See our recent QuickTake where we mentioned this: LKY starts drilling US rare earths project - 4 miles from $14BN MP Materials
What’s next for LKY?
🔄 Drilling results from Desert Antimony Mine
LKY has drilled at DAM - targeting extensions to the old workings to the north and south.
We want to see if LKY can prove that the mine extends over the 1.2km of strike mapped earlier in the year. Results should start coming through soon.
(source)
🔲 Product qualification with defence and industrial partners
LKY has now produced both antimony ingots and 99.5% antimony trioxide from its Mojave Project ore. The next step is getting this product qualified with potential customers - metals traders, defence supply chain participants, and government agencies.
Bench-scale validation of DES processing and economic assessment is the next milestone for the Rice University program.
LKY has signed partnership agreements with Rice University, Columbia University and Hazen Research.
Broadly, we want to see LKY progress the following across the three partnerships:
- Pilot plant design and metallurgical test work (Hazen and Rice)
- Production of representative samples for US industrial and defence qualification (Hazen)
- Commercial analysis and process optimisation (Hazen and Rice)
- Rare earth processing tech development (being done with Columbia University)
🔲 US government funding decisions
LKY has a US$191M LOI from US EXIM and a US$43M DPA Title III application in play. (source)
With the Pentagon actively deploying capital into antimony projects, we think LKY could be in conversation the next time funding goes out.
🔲 Rare earths drilling at El Campo
LKY got drilling underway earlier in the month at this project too.
LKY had four diamond holes planned across ~900m of strike with the program expected to take ~3 weeks to complete, so it should be finishing up if not already with assays to follow. (source)
(source)
