Wicheeda rare earths suitable for commercial processing, Ucore says

Ucore Rare Metals (TSXV: UCU; US-OTC: UURAF) has deemed a 26-tonne sample of mixed rare earth carbonate (MREC) from the Wicheeda mine as suitable for processing on a commercial scale using its RapidSX technology. The sample was tested at Ucore’s RapidSX commercialization and demonstration facility in Kingston, Ont.

The mine, located 80 km north of Prince George, B.C., is owned by Defense Metals (TSXV: DEFN) and is at the prefeasibility stage. Wicheeda hosts 34.2 million measured and indicated tonnes grading 2.02% total rare earth oxides (TREO) and contains 699,000 tonnes TREO. It also has 11.1 million inferred tonnes at 1.02% TREO, for 113,000 tonnes TREO.

“Our testing of the MREC product was well-received confirmation that the Defense Metals’ Wicheeda project is a source of material that can become a fundamental economic and technical component to Ucore’s plan of developing multiple SMC’s [strategic metals complexes] across North America – each with the ability to process a multitude of light and heavy mixed rare earth carbonates and oxides from a vast assortment of original mineralizations,” Mike Schrider, Ucore’s vice president and COO said in a news release on Monday.

The positive sample results follow Ucore’s successful commissioning of its Kingston plant last December. Ucore is also working on developing its first commercial, 7,500-tonne-per-year strategic metals complex in Louisiana. Ucore received in November a $4.3-million grant from the Canadian government for the development of the RapidSX technology, as well as a US$4-million grant last June from the U.S. Department of Defense, aimed at producing the heavy REE magnet materials, terbium and dysprosium.

Commercial production of rare earth carbonate from Wicheeda would make it the only rare earths mine in the country, after Vital Metals (ASX: VML; US-OTC: VTMXF) last year paused operations at its Nechalacho mine in the Northwest Territories and declared bankruptcy for its processing subsidiary in Saskatchewan amid cost concerns. 

Defense CEO Craig Taylor said the Wicheeda project is vital in reducing North American dependence on non-Western sources of rare earths, which are used in permanent magnets and other technologies needed for the green energy transition.

“We look forward to continued progress toward collaborative opportunities with processing partners and strategic partners, such as Ucore, across the developing North American rare earth supply chain,” Taylor said. 

Ucore shares traded at 75¢ apiece on Tuesday morning, valuing the company at $46.3 million. Its shares traded in a 52-week range of 57¢ and $1.27. 

Shares in Defense Metals were up 6.9% to 23¢ each, giving the company a market capitalization of $59.4 million. Its shares traded between 15¢ and 27¢ over the past year.