While China dominates the critical rare earths market, two companies plan to work together on potential North American supply and processing. Commerce Resources TSXV:CCE and Ucore Rare Metals TSXV:UCU have signed a memorandum of understanding to conduct metallurgical tests on material from Commerce’s Ashram REE deposit in northern Quebec. Characterized by relatively simple mineralogy and a favourable distribution of magnet feed elements, Ashram is currently moving towards pre-feasibility.
The MOU would integrate Ashram material into Ucore’s SuperLig-One molecular recognition technology facility in Utah. A joint venture of Ucore and IBC Advanced Technologies, the MRT process involves selective separation.
The tests would determine the suitability of Ashram concentrate for a Strategic Metals Complex that Ucore plans to build in Utah to process REEs and platinum group metals. Following the tests, Commerce and Ucore would consider long-term supply and offtake agreements.
Metallurgical tests at a Colorado facility have already produced an Ashram concentrate surpassing 45% rare earth oxides at approximately 75% recovery.
Ashram’s “high-quality and high-grade mineral concentrate … looks to be a very promising candidate for processing via an MRT separation circuit,” commented Ucore president/CEO Jim McKenzie. “The Ashram deposit is large tonnage, good grade, hosts a well-balanced REE distribution with an enrichment in the magnet feed REEs and, perhaps most importantly, is highly accessible. In combination with the SMC, Ashram promises to be a key link in a self-contained North American REE supply chain.”
The news comes as U.S. Congress considers a bill to support domestic supplies and processing for minerals vital to defence, including rare earths. A number of recent reports from the U.S. Geological Survey have highlighted that country’s dependency on possibly insecure foreign sources.
Commerce president Chris Grove added, “Security of supply is vitally important and, with our simple mineralogy and successful use of standard processing, we look forward with Ucore to realizing the goal of an independent North American REE supply chain.”
Another recent MOU signed by Commerce would have independent power producer TUGLIQ Energy study the potential for wind-generated electricity on the Ashram project.
Last week Commerce closed a private placement of $942,630, which followed a February financing that raised $1.72 million including $1 million from Ressources Québec, a subsidiary of the provincial government corporation Investissement Québec.