Medallion Resources (MDL.V) has announced it has provided product spec sheets and small samples of its rare earth concentrate to several potential offtake candidates in the REE industry. Medallion aims to produce REE’s on a sustainable basis by extracting the elements from monazite, a by-product (which is predominantly seen as waste) from mineral sands mines.
Medallion has received some monazite from Iluka Resources (ASX:ILU) (the picture on top of this blog post is sourced from Iluka Resources) and has run some bench-scale test work on the sample to confirm its theory. And yes, it seems to work. Medallion has been able to extract REE’s from the monazite, and as could have been expected, the majority of the recovered REE’s are Dysprosium, Neodymium, Terbium and Praseodymium which are being used in magnets.
Medallion has recently raised an additional C$225,000 at C$0.03 per unit (with a full warrant priced at C$0.20 per share) to conduct further test work up to the moment it has to make a decision to build a pilot plant to conduct additional test work at a much larger scale compared to the bench-scale test work.
We have had extensive discussions with Medallion’s CEO Don Lay in the past few weeks and will commence in-depth coverage shortly because if this technique works on a larger scale (and there’s no reason to assume it wouldn’t), Medallion Resources won’t remain a 3 cent stock for much longer. Of course, the road to commercial production is still quite long, but we will provide a better overview in an upcoming in-depth report.
Disclosure: The author holds a long position in Medallion Resources. Medallion Resources will very likely become a sponsor of this website. Please see our disclaimer for current positions.