Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF) released an updated mineral resource and ore reserves estimate for its Western Australia-based Mount Weld rare earths deposit on Monday (August 5).
The update shows a significant increase in tonnage and contained total rare earth oxides (TREO) compared to the company’s previous mineral resource and ore reserves estimate, which was released in 2018.
The improvement is the result of 84,000 metres of drilling completed since the earlier estimate was published. The new estimate shows an increase of 92 percent in the mineral resource and a 63 percent rise in ore reserves.
Mount Weld’s mineral resource now stands at 106.6 million tonnes at 4.12 percent TREO, while ore reserves have increased to 32 million tonnes at 6.44 percent TREO, including a 92 percent lift in contained dysprosium oxide.
Dysprosium is a key ingredient in the rare earth permanent magnets used in high-tech electronics and electric vehicles.
“This updated statement provides a 20-year life of mine at 12,000 tonnes per annum NdPr finished product production capacity, providing confidence to our customers that we can meet their needs for responsibly produced rare earth materials today and tomorrow,” said Amanda Lacaze, managing director and CEO of Lynas.
China dominates the rare earths sector, and Lynas describes itself as the only significant producer of separated rare earth materials outside the Asian nation. It says Mount Weld is one of the world’s most valuable rare earths deposits.
During the quarter ended on June 30, the company produced 2,188 tonnes of TREO and 1,504 tonnes of NdPr. Those amounts were lower than both the previous period and the year-ago period due to maintenance at Lynas Malaysia.
Meanwhile, sales revenue came to AU$136.6 million and sales receipts were AU$117.5 million, numbers that Lynas said reflect a low average price for NdPr during the quarter. The company is carefully timing sales to manage volatility.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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