Medallion Resources Limited (CVE:MDL) (OTCMKTS:MLLOF) continues to advance its plans to produce magnet metals and has hired international engineer Stantec to find a site in the US for its rare-earth element (REE) extraction plant.
The firm aims to produce rare-earth elements through the processing of monazite tailing streams using feedstock sourced from the southeast of the US.
The plant’s output will be rich in Neodymium and Praseodymium (NdPr), which are essential for the magnets that power the motors in electric vehicles (EVs), defense applications, and other clean technologies.
"Based on recent announcements from the US Department of Defense on funding programs for rare-earth separation and magnet stockpiling as well as automakers’ desires for non-Chinese sources of NdPr, we’re taking this important step toward production,” said Medallion's president and CEO Don Lay.
"The military requirement for NdPr is highly strategic and looks to only add to the looming NdPr shortages forecast by industry analysts, given EV market growth.”
Medallion highlighted that the proposed plant in the USA had a small footprint and capital costs that were a "fraction" of traditional REE mining and processing facilities.
"This provides a quick pathway to production of rare-earth products for domestic markets," it added.
An excellent feedstock
Notably, upgraded monazite sand makes an excellent rare earth element feedstock, says Medallion, because it has a high input feed grade of 55-60% rare-earth oxide (REO) equivalent compared to 2-10% REO equivalent in a typical hard-rock rare earth deposit.
Monazite sand is available as a by-product of the heavy-minerals sand (HMS) industry, with sources in the United States, South America, Africa, Australia, and Southeast Asia.
Medallion has established relationships with many HMS firms to coordinate upgrading potential, volumes and timing of available material.
Shares in Toronto were unchanged at C$0.085.
Contact the author at [email protected]