Altona Rare Earths Share Discussion Threads

[veldt] 09/3/2011 21:52

Very interesting tables TARGETRIGHTON. Thanks for posting them. I am going to find some funds from somewhere to add to my small holding in GWG. It all makes for a very compelling case for profits in the future IMHO.

[targetrighton] 09/3/2011 00:42

SOME TABLES TO BE VIEWED IN YOUR SPARE TIME

[targetrighton] 07/3/2011 04:39

Something with your early Morning Coffee

[tomoslewis] 04/3/2011 20:28

Rare earth mineralization confirmed at Sierra Rutile mine (AIM listed SRX) from yesterday's return. Looks like an interesting prospect as an early uk listed producer.



-- Rare earths mineralization confirmed by independent laboratory at grades of 2.2% in existing HTT stream

-- Rare earth mineralization contained in a by-product stream of existing and ongoing rutile production, which has already been mined and partially processed

-- Study commenced to evaluate processing requirements to further separate and recover rare earths

Sierra Rutile Limited announces that SGS Lakefield Research Limited ("SGS") has confirmed the existence of rare earth oxides ("REOs") at a grade of 2.2% in Sierra Rutile's high-tension tailings ("HTT") stream. As part of the Company's recently announced strategic review update, significant rare earth mineralisation was identified and, following SGS' independent assessment, the Company is now exploring opportunities to refine and market these REO by-products.

The distribution of REOs in the HTTs is attractive and contains high concentrations of neodymium, lanthanum and praseodymium. HTTs are produced from Sierra Rutile's existing dry processing plant and, as such, the REOs are not in the ground, but in a by-product stream from Sierra Rutile's existing production of rutile and ilmenite. The HTTs are the same source from which Sierra Rutile already recovers its zircon by-product by re-processing it through the dry processing plant.

Sierra Rutile will now commence a study into how best to separate and recover the REOs from the HTTs. This will consider both the optimization of Sierra Rutile's existing dry processing plant and the potential addition of further processing facilities to realize the value of the REO in the HTTs. Sierra Rutile will also analyse its existing stockpiles of HTTs from historical production to determine the availability of REOs in these stockpiles. The Company will announce the results of the study and analysis in due course.

John Sisay, Chief Executive Officer of Sierra Rutile, commented, "The independent confirmation of rare earth mineralization in the tailings stream is a positive step and we now have clarity on the type and extent of these minerals. Sierra Rutile is assessing the feasibility of future rare earth production given the relatively attractive cost position of processing rare earths which are already extracted and significantly refined as part of our normal rutile separation process. The market dynamics and long-term fundamentals of the REO industry are attractive and we have therefore taken the decision to proceed with further studies."

Sierra Rutile's existing operations generate approximately one tonne of HTTs for every two tonnes of rutile produced. The Company's 2010 rutile production of 68,000 tonnes produced approximately 34,000 tonnes of HTT last year.

Samples from 14 locations in the HTT stream were analysed by SGS. Locations were chosen based on processing methods, the conductivity and radioactivity of processed material, and the chemical properties of REOs.

The distribution of REOs compare well to the deposits of non-Chinese rare earths companies (the "Comparator Group", as defined below) (refer to Figure 1). None of the Comparator Group companies are in commercial production at this stage.


SRX sample tailings Rare Earth
Figure 2 - value of processed Comparator
Value of REOs in tailings REO (US$/kg) (3) Group (US$/kg)
---------------------------------- ---------------------- ----------------

Light Rare Earths
Lanthanum 20.5. 19.2
Cerium. 44.4. 36.8
Praesoodymium. 6.5. 6.1
Neodymium. 28.1. 23.4
Samariumv. 2.3. 2.3

Heavy Rare Earths
Europium 0.6. 2.7
Gadolinium. 0.6. 1.6
Terbium. 0.3. 2.1
Dysprosium. 0.6. 6.6
Holmium. 0.0. 0.1
Erbium. 0.1. 0.4
Ytterbium. 0.2. 0.9
Lutetium. Testing in Process 0.4

Other
Yttrium Testing in Process 8.9
Scandium. Testing in Process -

Total. 104.2. 111.5



Grade of tailings (%) 2.2%
Implied value of REO in
SRX sample tailings (US$/tonne) 2,258.9

(3) Prices as at 25 February 2011 from Metals Pages
for all elements except holmium, erbium, ytterbium
and lutetium, for which estimates have been taken

[shavian] 04/3/2011 14:46

Just in from Gareth at TechMetalsReasearch:

In the past couple of weeks or so we've seen a number of news releases from Great Western Minerals, concerning efforts to move their Steenkampskraal rare-earth project forward. After announcing a new exploration program at the site, and the "advanced discussions" concerning the construction of a separation plant in South Africa, the company announced the completion of the purchase of Rare Earth Extraction Co Limited (Rareco), operators of the Steenkampskraal project.

Last month, while in South Africa attending Mining Indaba 2011 in Cape Town, I was able to sit in on an extended update from GWMG and Rareco management on their recent activities, some of which has subsequently been published in the above press releases and reported elsewhere. I also had the chance to visit the Steenkampskraal property itself.

Take a look at my extended article on the updates and site visit, including a photo gallery, via:



Feel free to post a comment or question on the Web page above.

Best wishes

Gareth

[targetrighton] 02/3/2011 19:08

I would like to advise all that don't understand that the 92.57% is as good as 100% percent as GWMG will now move to force the remaining that did not render and they can do it without any issues as it will be court ordered. GWMG will get 100% of the shares.

[targetrighton] 02/3/2011 17:05

GWMG ACQUIRES 92.57% OF RARECO SHARES AS OF FEB. 28TH., 2011

[speedy] 28/2/2011 14:04

Samarium prices are well up despite a supposed excess of supply over demand. It looks like magnet
materials are particularly in demand, and I suppose designs will try to minimise use of expensive
rare earths and favour less costly solutions where they can.

[targetrighton] 27/2/2011 18:13

Excellent bit of DD taken off another forum

From the GWG latest press release

The separation plant, which would process the mixed rare earth chloride, that is planned to be produced at the Steenkampskraal site,into separated Rare Earth oxides, is a core component of GWMG's plans to be a fully integrated Rare Earths producer.

GWMG is evaluating several alternatives. Under each alternative, the Company would also be acquiring separation expertise.

I think separation expertise will come from China.


There wasn't much talk about Molycorp in China other than to hope that if it gets into production Chinese customers will have an opportunity to buy its products. The only non-Chinese rare earth mining venture present was Great Western Minerals Group, (GWG.V)of Canada. Its chairman gave a talk on his "mine to market" strategy,and he told me he was there both because he was invited and in order to continue negotiations for a strategic alliance with a Chinese refiner on an African project the goal of which is to supply GW's UK magnet alloy plant, Less Common Metals, with feedstock metals for its operations from GW's South African venture at Steenkampskraal.



And about thorium

China is very interested in uranium for current use and in thorium for future use in nuclear reactors to produce electricity for civilian use without the need to burn fossil fuels. In addition China seeks uranium for its military programs. China last year instructed its domestic rare earth processing plants to hold all thorium produced as a byproduct for government use. This has always been the requirement in China for any uranium produced anywhere.

I'm certain that the current Chinese minority shareholder in ARAFURA would be willing to buy and export toChina all of the uranium or thorium produced in Australia by ARAFURA (or anyone else) at market price.



And if we add here
China announces thorium reactor energy program

[targetrighton] 27/2/2011 02:02

Where is this going to End

I just did a recalculation of the insitu value of one ton of Steenkampskraal ore at a 70% recovery rate and that has increased by 41% (today's pricing) to $12,774 a tonne of ore which in January 28th., 2011 was at $9,041. Where is this pricing going to stop or is it. This can not continue, something is going to collapse and come down with a big bang. Chinese obviously capitalizing on the opportunity.
Just like my favorite comedian of East Indian descent says in one of his comedy presentations "SOMEBODY GOIN' TO GET HURT"

[nathaniel1913] 23/2/2011 11:31

ashame.. From 1.23 to 70c on no news.. Brutal...

[bangor] 23/2/2011 09:03

REE stocks in freefall yesterday - TSM down 15% and GWG down 10% and continuing to give back all the recent gains. I haven't looked into what the triggger might be yet. Certainly a volatile sector.

[targetrighton] 20/2/2011 00:00

Good Listen

[shavian] 17/2/2011 07:17

Check out GGG.au. Results in on zone 2. Stongly up in Oz overnight again.

[nathaniel1913] 16/2/2011 21:53

TT.. A relentless sell off.. What do you make of this price action..Have you been watching the dark pool markets.. Being shorted my friend I think.

[shavian] 16/2/2011 07:57

Greenland Minerals up strongly in Oz overnight. Closed at $Au 1.28

[nathaniel1913] 16/2/2011 02:29

The traders have got it in for gwg right now.. Time to top up again.. That some sell off from 1.23 to 89 cents on no news.. Value and class always outs in the end

[targetrighton] 16/2/2011 00:46

pwmiles, the same scenario applies to Rare Element Resources. The heavy rare earth distribution is 3.53%. RES is a light rare deposit (96.47% light rare earth) and at current RE Oxide prices the deposit contains only $301.98 per ton of ore of heavy rare earths with very little dysprosium only 0.50%. Europium, gadolinium, and yttrium make up the balance of the HREEs. One other aspect to RES is that if the prices of light rare earth drop as projected the revenue stream for RES will drop by 50% to 70%, which is very significant..

[pwmiles] 15/2/2011 20:53

Company Name: Rare Element Resources Ltd.
Ticker Symbol: AMEX:REE
WWW Address: www.rareelementresources.com/s/Home.asp
CEO: [not stated]
No. of Employees: 4
Common Issue Type: CS
Business Description: [not stated]

(mcap about 500 M$)

Are these tradable in the UK?

PWM

[targetrighton] 15/2/2011 20:41

bangor, there is a typical example of touting, Molycorp in their entire deposit have a heavy rare earth distribution of only, yes I say only, 0.56% of which there is no dysprosium a finite amount of europium 0.10% a finite amount of gadolinium at 0.20%, yttrium at 0.10% and 0.16% of unidentified. They plan on processing 40,000 tons of TREOs by 2013 which would give them at total of 20.8 tons of heavy rare earths of the 40,000 projected with no dysprosium and they would have to process 430,108 tonnes of ore. With the decline in the light rare earths other than neodymium and samarium, Molycorp revenue will be diminished from $2.8 Billion to less than $1 Billion annually.

[targetrighton] 15/2/2011 20:19

CRITERIA FOR ANALYSIS
DARK CLOUDS ON THE HORIZON
Where should I put my Money before the Storm?
That is the question many investors are contemplating particularly in the Rare Earth Sector. There are literally hundreds of investment opportunities and as always in any sector only a few pay off. Much has been written, presented at road shows, exchanged between executives and discussed on numerous forums.
Yes, we agree that there are Letter News Writers that have touted certain companies and condemned others but there is a motive behind their touting. Some of those touted will not be successful and for obvious reasons and many of the followers of those news writers (so called experts) will eventually realize their dream was a mistake.
It is becoming very clear that that those serious in properly informing investors what to look for in an investment opportunity must take into consideration many factors. We all know what the basic factors are. A scale of 1 to 10 is used in rating each company and from that a metric can be developed grouping of five as survivors.
(1) MANAGEMENT -- How well are they structured and versed in the Rare Earth Sector. Is there personnel with the management team to take the company to the next level and beyond?
(2) INFRASTRUCTURE -- How accessible is the is the property and all the facilities needed to develop the property and continue its production?
(3) POLITICAL ENVIRONMENT -- How friendly and politically stable is the jurisdiction within which the venture will be operating?
(4) MARKETING -- How well has or is the venture marketing their product or are they seeking a market, ie: Off-Take Agreements etc. How is the company being exposed to end users of their products to be produced.
(5) ACCESS TO CAPITAL -- Does the company have the capability in raising the required capital to develop or proceed with the proposed development? How much capital will be required and what is their current share structure and market capitalization. Is further dilution needed or are other means of obtaining capital an option to furthering development, ie joint venturing.
(6) LABOR FORCE -- Is an acceptable level of skilled labour force available within proximity of the development or must they be brought in and trained. Has the company got expertise within the organization to proceed to the production level or must they be recruited. The market for this type of expertise will become very competitive and those companies having that expertise or access to that expertise are definitely going to be at an advantage.
(7) PROPERTIES -- How many properties does the company currently have 100% ownership and joint venture arrangements or has plans on acquiring to compete in the Rare Earth Sector. How advanced in the development of the properties is the company, staking, aerial surveys, drilling, compliance reports (43-101 or Jorg), feasibility studies and commitment to production and construction of facilities.
Not to say that the items I've partially detailed above are not crucial or relevant to the success of the venture, but I must imply that those items detailed below will determine the faith of the venture.
(8) SIZE OF RESERVES --Although this is not the main factor it will determine how successfully the overall chain of supply will be affected by the quantity of rare earth oxides that may be provide from the deposit. How many properties within the portfolio of the company have sizeable reserves. How many have 43-101 or Jorg compliant data . What stages of development are the properties and timelines of development.
(9) GRADES OF THE DEPOSITS -- This is one of the MAIN KEY factors that will spell and determine the faith and how successfully the overall chain of supply will be affected by the company. It has been discussed by analysts and mining executives and it has been determined that any deposit within an overall grade of less than 2% has a slim or none chance of success unless it meets some of the other factors listed below. It has and is still projected that Neodymium (Nd) and Samarium (Sm) along with a number of the Heavy Rare Earths will be in short supply by year 2013/2014 and is projected that China may be importing those particular rare earths by 2014 for their domestic supply. Unless the grade within the deposit is sufficient enough to be able tp produce a substantial supply of these elements the chance of success of that venture is limited.
(10) PERCENTAGE OF DISTRIBUTION -- ANOTHER KEY FACTOR. As stated above certain elements are projected to be in short supply and if the percentage of distribution within the deposits being developed are low or none existent then the success of the company will be affected. No two deposits are alike, varying in grade and percentage distribution of mineralization. The percentage distribution of light rare earths versus heavy rare earths will play a key role in the companies contribution to the entire supply chain. It is also projected that the supply demand for light rare earths, other than Neodymium (Nd) and Samarium (Sm) will decrease substantially (by as much as, currently $50 kg. to $10 kg.) which will have a definitive impact on light rare earth producers.
(11) COST OF PRODUCTION -- Each jurisdiction has its advantages and disadvantages as to the cost in carrying out any enterprise. Within some jurisdictions the operational costs are 50% to 70% less than other jurisdiction. Therefore you must be familiar with sources in obtaining that type of data, which at times is very difficult.
(12) VALUE ADDED CAPABILITIES -- Not many companies within the Rare Earth Sector outside of China have a capability to continue the supply chain from the finished product into the next level of production and marketing. Summarized here is what the chain entails, Link (1) Property Acquisition, Link (2) Exploration and Development, Link (3) Mining and Milling the Ore, Link (4) Production of concentrates, chlorides or carbonates, Link (5) Refine Concentrate into high purity oxides, Link (6) Oxides separated into metals, Link (7) Metals are blended into alloys, Link (8) Alloys used in the manufacture of magnets, batteries and other commodities.
It so happens that the value added capability is the most profitable of all other aspects of the chain. From the high purity link to the alloy producing link between 70% to 80% of profits are realized within a company's bottom line if they have that capability within their portfolio

[bangor] 15/2/2011 09:21

What to look for in a rare earths project

China's stranglehold on the rare earths market and the expected growth in demand has seen a flurry of new investment in the sector, here is a look at what analysts look for in a rare earth project