Location - New South Wales (NSW), Australia
Ownership - 50% Earn-in Right
Partner - Jervois Mining Limited (ASX Listing: JRV)
Project Highlights:- Unique, scandium-only development project,
- NI 43-101 measured & indicated scandium resource,
- Planned 28,000 kg p.a. production, for oxide product (Sc2O3), with mill plant on-site,
- Surface property owned by JRV (partner), local infrastructure excellent,
- Environmental (EIS) work progressing without issue,
- Metallurgical test work completed by Hazen Research (Golden, Colorado), and
- NI 43-101 economic feasibility study underway currently by SNC-Lavalin (Brisbane, Australia).
Mining at the site is anticipated to be done by conventional truck & shovel method. The resource is a typical tertiary laterite, composed of limonites and saprolites. The top 15 metres is alluvial material, and the next 50 metres is the limonite-saprolite host for scandium. The resource indicates a very low strip ratio, and it is expected that the plant will be satisfied by a partial-year mining schedule during the dry summer season (contractor campaign mining).
The processing and refining plant details are still being finalized. Previous metallurgical test work has shown recoveries of 70% are possible, with conventional processing techniques effective on laterites (acid leaching, SX). Completed test work includes a series of continuous pilot plant scale steps seeking improved recoveries, better product grades and lower acid consumption rates for better economics and environmental outcomes. This work will be applied by SNC-Lavalin in the upcoming economic and capital cost estimates.
Markets. The global scandium market is estimated at 10,000 kg p.a. today (10 tonnes), although it is believed that more product of varying quality levels actually trades and is not captured in the estimates. A market of 10 tonnes of Sc2O3 would have a value of approximately $30M, based on a $3,000/kg average price. The primary markets for scandium oxide are for use in aluminum alloys, and as a stabilizing agent in solid oxide fuel cells (SOFC's). Both markets are expected to grow to many times this current level of 'apparent' demand, once a reliable and sizeable source of scandium product is available. Current scandium markets are fully supply constrained-no sufficient supply source has ever been available that would allow scandium-based markets to develop to their potential.
For a more detailed review of EMC's Nyngan Scandium Project, click here.
Property and Geologic Description
The Nyngan scandium resource is located approximately 500 kilometers northwest of Sydney, Australia. The property consists of two exploration licenses (part of EL 6009 and all of EL 6096). The licenses, the mineral rights and the surface rights are controlled by Jervois, and the property encompass over 9,000 hectares. The property is accessible via a 25 km sealed road from the town of Nyngan.
The scandium resource is hosted within the lateritic zone of the Gilgai Intrusion, one of several Alaskan-type mafic and ultramafic bodies which intrude Cambrian-Ordovician metasediments collectively called the Girilambone Group. The laterite zone, locally up to 40 meters thick, is layered with hematitic clay at the surface followed by limonitic clay, saprolitic clay, weathered bedrock and finally fresh bedrock. The scandium mineralization is concentrated within the hematitic, limonitic, and saprolitic zones with values up to 495 ppm scandium over 12 meters.
Project History
The first systematic exploration in the Gilgai region was conducted by Selection Trust in the late 1970's, followed in the 1980's by North Broken Hill. The companies were looking for gold and tin, respectively, and did not have encouraging results.
In the late 1980's, Lachlan Resources N.L., as manager of the "Platsearch Group" explored the area for platinum group metals (PGM). Lachlan conducted airborne and ground magnetic surveys to locate and delineate the intrusive "Alaskan-style" ultramafic complexes considered to be prospective for PGE mineralization. Subsequent broad-spaced RAB drilling identified platinum targets, and follow-up close-spaced RAB drilling (134 holes & 6,779 meters) and diamond drilling (2 holes & 500 meters) produced assay results showing peak values of 1.53 g/t Pt. Some pyroxinite bedrock samples showed scandium levels of over 100 ppm. Lachlan dropped the properties in the mid 1990's, which were subsequently picked up by Anaconda. Anaconda focused on nickel/cobalt enrichment in laterites, completed considerable ground magnetic traversing, drilled 54 RC holes (2302 meters) and dropped the ground in 2001.
Jervois Mining Limited, of Melbourne, Australia ("JRV") (ASX Ticker : JRV) was able to obtain the pulps from the Anaconda RC drill program and analyzed them for numerous minerals, including scandium. Those initial assay results confirmed significant scandium enrichment in the Gilgai laterites. JRV secured the available exploration licenses and completed an RC drill program in 2006 (64 RC holes & 2,638 meters) from which Douglas McKenna & Partners produced a JORC compliant resource.
NI 43-101 Resource for Nyngan
In March 2010, EMC filed on SEDAR a NI 43-101 Technical Report on Resources for Nyngan Scandium, signed by Max Rangott , Rangott Mineral Exploration Pty, Limited, of Orange, NSW Australia , as QP. The results of that report, which is also JORC compliant, are as follows:
Nyngan Scandium Project NI 43-101 Resource Estimation |
|||
Resource Category |
Tonnes |
Grade (ppm Sc) |
Overburden Ratio |
Measured |
2,718,000 |
274 |
0.81:1 |
Indicated |
9,294,000 |
258 |
1.40:1 |
Total |
12,012,000 |
261 |
1.10:1 |
Notes: This resource has been prepared to comply with NI 43-101 and JORC Code - Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy. Resource calculation prepared by Douglas McKenna and Partners. The resource calculation is based on a total of 2,638 meters of drilling in 69 drill holes, of which 64 holes were reverse circulation and 5 were air core. The Gilgai laterite resource is covered by a minimum of 15 meters of Quaternary- aged alluvials. The significant resource is not below 65m and the entire resource is amenable to open pit mining. Assays for this program, by ALS Chemex, used the following methods: ME-ICP61s Up to 27 elements 4 acid digest ICPAES PGM - MS23 Pt, Pd, Au 30g FA ICP-MS. QC checks on sampling and assaying quality are satisfactory. In-situ densities: Limonite 1.63 g/cm3, Saprolite 1.41 g/cm3. Scandium resource was calculated by plan polygonal method. The reported mineral resource estimate has been rounded to appropriate significant figures.
Click here for the 43-101 Technical Report for the Nyngan Gilgai Project
EMC/JRV Partnership Description
In February of 2010, the Company entered into a joint venture agreement with Jervois Mining Limited to develop the Nyngan scandium property in New South Wales, Australia. The terms of the JV require EMC to earn in to a 50% position through a two stage work program.
- the first stage required EMC to spend a minimum of A$500,000 on project exploration and metallurgical test work by mid December 2010, and
- the second stage requires the delivery of a feasibility study in the first quarter of 2012, which demonstrates the positive economics of the Nyngan project to the partners.
Metallurgical Test Work on Nyngan Resource
JRV conducted initial test work on Nyngan drill hole material in the laboratories of the Commonwealth Scientific and Research Organization ("CSIRO"). EMC continued bench scale testing with the CSIRO, and refined the processes both at bench scale and continuous pilot plant scale with Hazen Research of Golden, Colorado, during 2010 and 2011. Most of the early bench scale results were actually available in 2010, and were developed by Roberts & Schaeffer, of Salt Lake City, Utah (now part of KBR - Brown & Root) into an initial capital cost estimate for the plant at Nyngan. The results of the Hazen metallurgical work, and the initial design and estimating work from Roberts & Schaeffer, are now being developed into a full project economic study by SNC-Lavalin.
Nyngan Project Development Plan
The project continues to target a production of 28,000 kilograms per year of 97.5% or better scandium oxide product (Sc2O3), for sale to global markets. The primary markets are master alloy producers serving the aluminum alloy industry, and the solid oxide fuel cell businesses (SOFC's), plus considerable material take up for research and high end lighting applications. The partners are expecting to finance and begin construction on a project in 2012, and produce product for markets in 2013.
