✦ What's with all the talk about REE (Rare Earth Elements) in the industry? Edward Mead, Technical Director of White Cliff Minerals Limited (ASX:WCN) shares about the company's projects.
So what is the REE story all about?
At its most basic terms, the Rare Earth Story is all about Neodymium and Praseodymium.
It's the search for these two elements that is making the REE sector so buoyant.
Thing is, many junior explorers are all talking about REE. The way Noel Ong, CEO of Samso sees it, the REE Story is about Strategy.
Evolution of the REE sector
The REE sector was and continues to be a sector dominated by China. In the past, it was clear that the global industries welcomed globalisation. It was good to share the work around. Then the world experienced COVID, and saw China getting stronger and nationalism started to loom even larger.
China has a lot of the REE and they make the products that use these metals.
What we are seeing now is that this dominance is not going down well. The world is not comfortable with the emergence of China as the next "Power Brothers".
At the beginning of the pandemic, people thought the world could perhaps find alternative markets. Two years on, this appears to be playing itself out.
REE in Australia
Why does REE continue to be in such demand?
It really is about the permanent magnets. In Western Australia especially, there is the geological advantage of having a lot of these metals and having them in the right jurisdiction. There is a strong possibility that an industry could be created in Australia for Australians.
Looking at the flow of business in the Lithium sector with the building of the Tianqi Lithium Hydroxide plant in Kwinana, there is optimism that a downstream industry could be created that will supplement the mining of lithium and the REEs.
Whether this could lead to other metals or not, time will tell.
What is hopeful is governments are now more involved. They have moved beyond merely listening to having conversations and giving companies time to express their wishes.
And what is the White Cliff Story all about then?
We can start by focusing on two main projects of White Cliff Minerals Ltd - the Yinnetharra (Figure 1) and Hines Hill (Figure 2) project.
Yinnetharra Project
The Yinnetharra Li/REE project consists of two tenement applications, E09/2628 and E09/2641 (Figure 2), within the Gascoyne lithium region, located about 100km northeast of Gascoyne Junction and 85km south of Hastings Rare Earths (ASX:HAS) world-class Yangibana rare earths project.
At the Yinnetharra project, their recent rock chip sample (3,912 ppm TREO with 26% MREO) is clearly indicating mineralisation. It may only be a rock chip but that is a great indication that there is a cooking mechanism in place. You do not need to look very far to realise that this region is now known for REE mineralisation.
The Yinnetharra project is in a very hotly contested region of the Gascoyne Province where you have Hastings Technology Metals Limited (ASX: HAS) (Figure 3) building a plant to support their REE resource.
Hines Hill Project
The Hines Hill REE project consists of one tenement granted tenement (E70/5875) within the Yilgarn region, located 20km west of Merredin and along the Great Eastern Highway. The project area is underlain by granites of the Yilgarn craton, with multiple SW/NE trending dykes transecting the license.
The project area contains two large aeromagnetic anomalies which may be indicative of carbonatite intrusives. In addition, sampling by the GSWA in the Yilgarn craton defined a strong REE anomaly in the vicinity of the aeromagnetic anomalies. It is therefore believed that the project area may host previously unknown carbonatite intrusives with REE mineralisation potential.
White Cliff's Strong Points
White Cliff stands out with their location and the understanding that logistics, the ability to exit, is clear. Their two projects are greenfield but they are located geologically where they have not been walked over. Also, the early signs from drilling and rock chip sampling have been encouraging.
The White Cliff story is set to continue developing its own story.
The Gascoyne province was largely unknown with some gold and base metal exploration in the past. Today, it is a hype of activity for Rare Earths. There have been some significant discoveries recently so the proof of mineralisation is now completed.
Mineral exploration takes time, and we can keep an eye open to see how White Cliff will develop its exploration story from here. It has a low market capitalisation and that will keep the punters happy.
Conclusion
With the general market coming back over the last six months, it is a good time to take a closer look at stories like White Cliff. A tip for investors to take note of when they DYOR (Do Your Own Research) - as a shareholder, it´s all about the story and management.
White Cliff, from the investing point of view, has great projects with potential. The REE sector is not an easy one and if the downstream process continues to develop, there could be a shift in controls of the REE market.
It's clear we're in the transition of a global industrial shift where the world needs efficiency in less emission technologies. The components of the REE sector is the main player.
Keep getting curious about all the different projects that are in the industry. They all have their own stories. Think about your risk appetite and patience, and research to know where to best invest.
PODCAST
Chapters:
00:00 Start
00:20 Introduction
01:23 Edward Mead
02:25 About the recent announcement
05:23 Why was the Yinnietharra area overlooked?
09:43 How should investors position for the REE Sector?
14:54 Hines Hill
16:54 What are the upsides for Hines Hill?
19:20 Can the rare earths conversation be sustained?
22:42 View on the market for 2023
27:20 News flow
29:07 Why White Cliff Minerals?
29:49 Conclusion
About Edward Mead
Technical Director
White Cliff Minerals Limited
Mr. Edward (Ed) Mead is a geologist with over 20 years of experience in gold and base metals exploration, mine development and mine production. Ed has also worked in the oil and gas industry on offshore drilling platforms. Other commodities that he has significant experience with and can be considered to be a competent person in are iron ore, magnetite, coal, manganese, lithium, potash and uranium.
Geological areas in Western Australia that he has worked in include: the West Pilbara for base metals and gold; the East Pilbara for manganese and gold; the Yilgarn for gold; the Kimberley for base metals, gold and uranium; and the Murchison for base metals, uranium and gold.
He has a BSc in geology from Canterbury University in New Zealand and is a member of the Australian Institute of Mining and Metallurgy.
About White Cliff Minerals Limited
White Cliff Minerals Limited is a mineral exploration company trading on the Australian Securities Exchange under the ticker code WCN. The Company is currently focusing its exploration on the Reedy South Gold Project near the Cue mining centre in Western Australia, and is pursuing a dual strategy to advance its prospective gold and nickel-cobalt projects in Western Australia.
Contact White Cliff Minerals Limited
White Cliff Minerals
ABN: 22 126 299 125
Level8, 99 St Georges Tce,
Perth, Western Australia 6000
PO Box 5638, St Georges Tce, Perth WA 6831
Phone: (08) 94864036
Fax: (08) 9486 4799
Email: info@wcminerals.com.au
Disclaimer
This article is sponsored content.
ASX companies engage Samso and Brilliant-Online to share their commentary on the progress of their companies and projects. The author, owners of Samso and Brilliant-Online and associated entities may or may not hold shares of these companies.
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. - Samso
About the Author
Noel Ong, CEO of Samso tells compelling stories by engaging business leaders to reveal insights beneficial to the investment community.
Contact Samso
Samso helps executives tell ASX stories that pique interest.
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