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Investor Presentaiton

IRON CLAY MONAZITE BASTNAESITE MINERAL Clay versus Hard Rock REE Summary of leaching technologies in primary rare earth elements production PROCESS/STEPS REE YEILD REMARKS STATUS 1. Hydrochlorid acid (HCI) leaching to remove non REE carbonate 85-90% II. Calcination of esidue to form rare earth oxide The oldest way to producte bastnaesite concentrates. Outdated 1. Digestion with nitric acid (HNO) or sulphiric acid (H,SO) 1. Roast at 620°C to drive of carbon dioxide (CO2) II. 30% HCI leach I. Alkine conversion rare-earth metal- fluoride REF, to rare-earth hydroxide RE(OH), II. 30% HCL leach 1. Sulphiric acid roast II. Sodium chloride solution leach III. Precipitation as sodium double sulphates 1. Digestion in hot sulphiric acid (H_SO) 98% •Acid choice depends on further processing: solvent extraction to nitric acid (HNO) precipitation to sulphiric acid (H,SO) Outdated • Cerium+Ill oxidises to cerium+IV during roasting will not leach REE fluorides Outdated • Residue is marketable •Process can be preceded with hydrochlorid acid leach to extract REE In use carbonates before alkaline conversion. Precipitates are converted to chlorides for further purification with solvent extraction. In use •Process conditions determine what is leached: only light REE or light + heavy Outdated REE+thorium • Cerium cannot be leached if manganese is present 1. Digestion in hot 60-70% sodium hydroxide II. Washing residue with hot water 98% III. Leach with mineral acid of choice •Thorium is leached together with REE Trisodium phosphate (Na_PO) is In use marketable by-product 1. Heat under reducing and sulphidising Requires no fine grinding atmosphere with calcium chloride (CaCl,) and calcium carbonate (CaCO,) 89% II. Leach with 3% HCI •Thorium does not leach, remains in residue as thorium dioxide (Tho₂) No manganese problem In use I. Salt leach with ammonium sulphate (NH),SO, 80-90% Targets physisorbed REE through cation exchange In use I. Leach with saltwater 40% •Inefficient but cheap process Research & development Advantages of clay deposits Project location Geographic distribution of resources and production Element composition Rare earth element assemblage and concentration Extraction intensity Relative operating costs Exploration dynamics Cost and time Mine development Capital expense Clay REE Dominated by Asia, specifically China and Myanmar Both light (Nd and Pr) and heavy (Tb and Dy) rare earth elements typically exist Low Inexpensive aircore drilling into soft sedimentary material for swift exploration Low Shallow deposits, progressive mining and rehabilitation Hard Rock REE Mainly China, also projects in Australia and the U.S. of America Predominately light rare earth elements (Nd, Pr) High Costly, hard rock diamond drilling required for slower, expensive exploration High Large open pit with large operating fleet and costly closure Processing Style and environmental impact Simple, proven, low acid metallurgy with inert tailings and solvent recycling Complex metallurgy, high temperatures and pressures, strong acids and often radioactive tailings •Dissolves entire clay 1. Acid leach with strong acid (pH<1) 100% Not used Source od6metals.com.au •Incurs significant additional costs Source: Peelman et al., 2014. www.desertmetals.com.au m
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