Next Investors logo grey

MinRex sees potential for standalone scandium mine in NSW


Published 14-MAY-2018 11:11 A.M.


4 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

MinRex Resources Limited (ASX:MRR) this morning updated shareholders on the pre-acquisition due diligence that’s currently underway on the Pacific Express project in NSW.

MRR assessed the extent of scandium mineralisation at the project in more detail, especially the prospect of developing a potential standalone deposit at the Houston Mitchell prospect, following the discovery of legacy metallurgical reports from circa 20 years ago.

Whist reviewing the historical tenure reports related to the Pacific Express project, the geology team found extensive legacy metallurgical studies based on test-work from three laboratories that utilised different techniques and generated varying results.

The test-work aimed to identify preliminary physical separation methods for ore to materially increase the head grade which, in turn, would reduce the volume of material to be processed while enriching the mineral fed into the proposed processing plants to extract scandium, cobalt and nickel.

It also aimed to vary chemical extraction methods to pin-point which technique resulted in recovering the highest proportions of scandium, cobalt and nickel, to enhance efficiency and maximise recovery.

Of course, as with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

All up, four rounds of metallurgical tests were conducted. The key finding were summarised as follows:

Houston Mitchell prospect samples (within Pacific Express project)

  • Testing completed on a high-grade sample (60ppm Sc) to assess the recovery of scandium with encouraging early recovery results of up to 70%.
  • Based on these results, the view from the metallurgy report at the time was the Houston Mitchell prospect had the potential to be developed into a standalone scandium deposit.
  • MRR’s geology team are currently evaluating occurrences of scandium-rich material. This potentially could result in scandium-rich mineral resources being defined separately to nickel-cobalt ones which dominate throughout the tenure.
  • Further, the geology team have observed that scandium is enriched nearer to surface, while cobalt-nickel mineralisation is deeper within the laterite.
  • Moving forward, the geology team aim to identify potential stand-alone scandium mineralised zones, which may partially or completely overlie deeper cobalt-nickel mineralised zones in the laterite.

Hurll’s Hill prospect samples (outside Pacific Express project)

  • Possibility of increasing the head grade up to 4,500ppm cobalt by screening to separate by sizing the upper limonitic zone and rejecting the marginal ore to waste. MRR’s geology team consider prospects identified within the tenure to have the potential to be similarly upgraded though future exploration and bulk sampling.
  • Chemical extractions of metals varied vertically and ranged up to 96% for cobalt and 94% for nickel.
  • A technical observation from the time is that Hurll’s Hill has significant potential to be developed into a major scandium, cobalt, and nickel laterite project.
  • Pre-selected targets within the Pacific Express project have similar geology to Hurll’s Hill, which indicate there is potential exploration upside to evaluate the prospects with modern exploration and assay methods.

Next Investors Image

The next step at the Houston Mitchell prospect is for external consultants to thoroughly review all legacy metallurgical data and test-work then summarise key findings. This project knowledge can materially aid fast-tracking future mining studies.

Any incremental metallurgical testing will now apply modern testing techniques to ensure maximum metal recovery from future lateritic exploration and/or bulk samples to boost confidence a potential viable standalone scandium deposit can be developed.

MRR will also begin modelling legacy data to ascertain if a Mineral Resource can be estimated for scandium-cobalt-nickel and reported to the JORC (2012) code.

MRR Executive Director, Simon Durack said: “Clearly, the due diligence team have uncovered a prospective game-changer for the Pacific Express project, with legacy metallurgical test-work verifying the potential to develop a standalone scandium deposit. Moreover, it is pleasing to note Boeing’s early interest in scandium alloys, as the future take-up rate from the aviation industry is set to grow materially over the next two decades. While the Board looks forward to receiving the geology team’s final report and recommendation, the legacy metallurgical evidence clearly confirms there is material exploration upside for the Pacific Express project.”

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.