REG - Rainbow Rare Earths - Initial Results from Uberaba confirm Rare Earths

Rainbow Rare EarthsAnnouncement

07/09/2023 07:00

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RNS Number : 6205L  Rainbow Rare Earths Limited  07 September 2023

7 September 2023

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

Initial Results from Uberaba phosphogypsum stack confirms Rare Earths
Opportunity

Rainbow Rare Earths is pleased to announce the assay results of the samples
from the Uberaba phosphogypsum stack in Brazil that is the subject of the
recently announced memorandum of understanding ("MOU") between Rainbow and The
Mosaic Company ("Mosaic").

Highlights

·    Initial assay analysis from samples indicates an average grade of
0.58% total rare earth oxides ("TREO"), higher than the 0.44% TREO for the
Phalaborwa project.

·    The Uberaba basket contains all four of the most economically
important rare earths, Neodymium and Praseodymium ("NdPr"), Dysprosium ("Dy")
and Terbium ("Tb"), with NdPr representing ca. 25% of the basket; NdPr
represents ca. 29% of the basket at Phalaborwa.

Rainbow assayed gypsum samples from different areas of the Mosaic stack, which
were sent to SGS Laboratories ("SGS") in Toronto for testing. These initial
results, considered positive, confirm that the Uberaba phosphogypsum stack has
similar characteristics to Phalaborwa given that both stacks are based upon a
hard rock carbonatite phosphate deposit.

Rainbow is encouraged by these results and is therefore planning additional
test work at SGS around the mineralogy to identify the rare earth phases and
facilitate the development of a process test programme.

Following the development of the process flowsheet, the next step entails
producing a preliminary economic assessment of this opportunity to extract
rare earths.

George Bennett, CEO of Rainbow, commented: "These positive initial assay
results confirm that Uberaba represents a major opportunity for Rainbow to be
able to develop an economic project along the lines of Phalaborwa, due to the
similar nature of both gypsum resources. The Uberaba phosphogypsum stack is
expected to be considerably larger in size than Phalaborwa and it is exciting
that initial results indicate it could have a higher rare earth basket price,
due to the higher NdPr content.  We expect that a significant portion of the
process flowsheet and intellectual property developed for Phalaborwa can be
applied to rare earth extraction at Uberaba."

 

For further information, please contact:

 

 Rainbow Rare Earths Ltd   Company  George Bennett     +27 82 652 8526

                                    Pete Gardner
                                    Cathy Malins (IR)  +44 7876 796 629

                                                       cathym@rainbowrareearths.com (mailto:cathym@rainbowrareearths.com)
 Berenberg                 Broker   Matthew Armitt     +44 (0) 20 3207 7800

                                    Jennifer Lee
 Tavistock Communications  PR/IR    Charles Vivian     +44 (0) 20 7920 3150

                                    Tara Vivian-Neal   rainbowrareearths@tavistock.co.uk

 

 

Notes to Editors:

About Rainbow:

Rainbow Rare Earths aims to be a forerunner in the establishment of an
independent and ethical supply chain of the rare earth elements that are
driving the green energy transition. It is doing this successfully via the
identification and development of secondary rare earth deposits that can be
brought into production quicker and at a lower cost than traditional hard rock
mining projects, with a focus on the permanent magnet rare earth elements
neodymium and praseodymium, dysprosium and terbium.

The Company is focused on the development of the Phalaborwa Rare Earths
Project in South Africa and the earlier stage Uberaba Project in Brazil. Both
projects entail the recovery of rare earths from phosphogypsum stacks that
occur as the by-product of phosphoric acid production, with the original
source rock for both deposits being a hardrock carbonatite. Rainbow will use a
proprietary separation technique developed by and in conjunction with its
partner K-Technologies, Inc., which simplifies the process of producing
separated rare earth oxides (versus traditional solvent extraction), leading
to cost benefits, as well as being more environmentally friendly.

The Phalaborwa Preliminary Economic Assessment has confirmed strong base line
economics for the project, which has a base case NPV(10) of US$627 million 1 
(#_ftn1) , an average EBITDA operating margin of 75% and a payback period of
< two years. Pilot plant operations commenced in 2023, with the project
expected to reach commercial production in 2026, just five years after work
began on the project by Rainbow.

More information on the company is available at www.rainbowrareearths.com
(http://www.rainbowrareearths.com/) .

 

 1  (#_ftnref1) Net present value using a 10% forward discount rate

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