An emerging Rare Earth Strategy

TUC’s Stromberg heavy rare earth prospect, located on the NT’s Fish River Station, is one of the first deposits of this type found in the region. Last year, in another first for the area, TUC also discovered high grade rare earth mineralisation at their Quantum Prospect, located just next door on the Douglas Station. Now boasting two complementary rare earth projects, TUC may be on the right track to develop into a fully-fledged rare earth company with the complete spectra of rare earths.

Stromberg was initially drilled in 2009, and uranium was discovered, back when TUC Resources was known as Territory Uranium Company. This year, TUC noted some geological parallels with other rare earth prospects in the NT and Stromberg drill chips were re-sampled, with very positive results. High amounts of very valuable and high demand heavy rare earths, such as Dysprosium (Dy) and Yttrium (Y) make Stromberg an important prospect. Additionally, the deposit is a shallow, flat-lying, weathered tabular body. This means that drilling and potential development can progress more rapidly, and lends positive economics to any future mining operation. Importantly, the rare earths at Stromberg are at least partially hosted within Xenotime, a mineral well-known and in high demand on the rare earth market, for its easy, low cost processing and excellent recovery potential. TUC also hope to be able to extract the uranium mineralisation as a saleable by-product. Metallurgical test work is in progress to determine achievable rare earth concentration grades and extraction methods.

The Stromberg Prospect has significant potential, as it may be able to supply a meaningful portion of the heavy rare earth market, helped along by its early indications of a low cost operation. Combined with the additional prospectivity that TUC are investigating in the district, the Company could possibly make an even bigger difference. TUC are currently investigating ways to fast-track the project to take a ‘First Mover Advantage’ with respect to supplying some of the World’s’ Dysprosium needs.

Now, a flurry of activity dominates this remote hilltop in the NT, as the team keeps busy to extend the rapidly growing exploration picture. Only 5km to the northeast, another anomaly just like it (Scaramanga), awaits detailed exploration.  With this large exploration upside, TUC are working on highlighting district potential, developing land access agreements, and of course, moving the current drill program towards resource definition stage and perhaps even pre-feasibility. With multiple phases of metallurgical and exploration drilling planned over the next season, it is sure to be an exciting year ahead for TUC, as we continue to develop as a serious contender in the heavy rare earth space.

With this recent success at Stomberg, TUC is currently following a strategy of attracting cornerstone investment from Rare Earth Industry Leaders into the Company.  TUC considers early alignment with a major industry player as a valuable advantage, due to the downstream processing and marketing requirements associated with these metals.  TUC expects to follow the model set by some of its peers, whose HREE endowment has led to early investment activity by major industry groups keen to secure possible future supply lines of these short supply resources.

Rare earth phosphors used in clolured LED lights (image sourced from a popular web search engine)

 

Last Modified Date : Wednesday, 01 February 2012