3 June 2021
Vital Metals Limited (ASX: VML) (“Vital Metals” or “the Company”) is pleased to provide an update on activities at its Nechalacho rare earths project in Northwest Territories, Canada, where production is on track to commence via ore sorting in June 2021.
Once in production, Vital Metals will be the first rare earths producer in Canada and only the second in North America. Vital Metals will send ore from Nechalacho to Saskatoon later in 2021 for cracking and leaching.
Vital Metals’ Managing Director Geoff Atkins said: “It has been extremely busy at Nechalacho during May as we make final preparations ahead of commencing ore sorting in June. With mining underway, we are focused on ensuring the ore sorter is installed and commissioned for operation. We are pleased to receive support from the Canadian Northern Economic Development Agency which validates our strategy to create a low impact rare earth production facility in the NWT that will generate significant Indigenous and Northern economic and employment benefits and establish the NWT as Canada’s first producer of these critical minerals that enable the green economy. CanNor’s support for adapting and adopting sensor-based ore sorting technology for the extraction of rare earths will result in a much smaller environmental footprint than would otherwise be the case”
Mining contractor Nahanni Construction Ltd completed the first blast at Nechalacho’s North T Zone in early May following its mobilisation to site.
Project development activities undertaken during May included:
Mining Operations:
Sorter Operations:
See release for: Figures 1 and 2 - Excavating the ore sorter location; Loading cobble to bring to ore sorter pad Figure 3 and 4 – Geotec mat for ore sorter; Bridge construction commences at Nechalacho Figure 5 and 6 – Ore sorter frame located in position and ore sorter awaiting placement Figure 7 - Loading till from north-east side of North T pit Figure 9 and 10 – Removal of overburden to rock; Drilling underway in preparation for first blast of ore. Figure 8 – Loading overburden
Key milestones forecast for June 2021:
Vital Metal’s Canadian subsidiary, Cheetah Resources Corp. (“Cheetah”), has signed a funding agreement with the Canadian Northern Economic Development Agency (“CanNor”) for C$1.26 million.
Cheetah will use the funding to demonstrate the environmental, technical, and economic advantages of single step sensor-based sorting of rare earth ore to produce a value added mixed rare earth concentrate in the NWT. The concentrate will be shipped to Vital Metals’ processing plant in Saskatoon where it will be processed into a mixed rare earth precipitate for primarily for export to Norway.
Compared to other REE beneficiation processes, this scalable mechanically based process significantly reduces the environmental footprint. It uses much less diesel, little or no water, involves no additives or chemicals and eliminates tailings ponds that typically accompany metal mining. Cheetah is developing production capacity to concentrate REE ore for export from the NWT for downstream processing. Following construction, it is estimated that the project will create 22 jobs and expand and maintain seven others during the demonstration phase.
The Canadian Northern Economic Development Agency (CanNor) is the Government of Canada’s Regional Economic Development Agency for the Territories. CanNor works with Northerners and Indigenous peoples, communities, businesses, organizations, other federal departments, and other orders of government to help build diversified and dynamic economies that foster long-term sustainability and economic prosperity across the Canadian territories – Nunavut, Northwest Territories, and Yukon.
Terms of the CanNor Repayable Contribution are as follows: