Movers and shakers of rare earths meet in Toronto
* Robin Bromby
* From: The Australian
* April 12, 2010 12:00AM
theaustralian.com.au
RARE earths were apparently the hot topic at the recent Prospectors & Developers Association of Canada shindig in Toronto, where 21,600 resources types schmoozed one another.
One of the highlights, according to our reliable informant, was a presentation by geologists David Lentz of the University of New Brunswick and Boston-based Anthony Mariano. (Incidentally, Mariano will be in Australia next week, his first visit since 1983, giving several investor briefings on rare earths. We expect brokers and high-net-worth types to be very interested in what he has to say.)
The presentation was highly technical, but it seems to us that the bottom line was that considerable caution needs to be applied to assessing rare earths projects. As Lentz and Mariano point out, even the rarest of rare earth elements are more than 200 times more abundant than gold, they occur mostly as impurities in rock minerals and only a few of such deposits are worth a cracker.
They also made another good point: that projects are more attractive if they contain the heavy rare earths.
You can see this from the prices fetched. These minerals are not openly traded, but the most recent Chinese figures show the difference. Among the "heavy" rare earths, europium (which gives you red on your TV or computer screen) was bringing over $US475/kg; terbium (used in magnets) was worth at least $US340/kg; and dysprosium (magnets and lasers) could bring upwards of $US107/kg.
By contrast, the "light" rare earths are in a different price bracket. Lanthanum (used in re-chargeable batteries) brought under $US6/kg, cerium (used in glass) under $US4/kg, with neodymium (magnets, lasers, glass) fetching around $US14/kg.
A most interesting slide in the presentation shows the proportion of "heavy" rare earths in various of the world's leading deposits outside China. With Mt Weld, owned by Lynas Corp (LYC), it's 3 per cent; at Nolans Bore in the Northern Territory, held by Arafura Resources (ARU), the heavy elements comprise 4 per cent. While smaller than these, in the Dubbo zirconia deposit held by Alkane Resources (ALK) the heavy elements make up 60 per cent of the rare earths.
However, the standout is Kvanefjeld in Greenland, owned by Greenland Minerals & Energy (GGG). The authors of the presentation describe this project as "both large and relatively enriched in high-demand heavy rare earths".
The resource at this deposit is more than twice the size of the next biggest, Mountain Pass in the US (although smaller than Baiyunebo in China) but 14 per cent comprises the heavy elements. In February, GGG reported a resource estimate in Greenland of 4.9 million tonnes of rare earths and 120,000 tonnes of uranium oxide. Its shares have been drifting since the recent high in January of 84.5c, closing on Friday at 48.5c.
We'll also be keeping an eye on the much battered Ram Resources (RMR) -- its last trade was at 4.5c. RMR attracted little attention last month when it picked up a tantalum-niobium project in southern Greenland, with the potential for rare earths credits. This junior could do with a bit of good news after the new management was left to clean up the Peruvian uranium mess.
The other mover on rare earths is Northern Uranium (NTU), which is expanding its interests in this sector by buying ground in the Kimberley region prospective for such elements. |
