Cobar’s Rare Earths Case: Low-Cost Processing at Salazar Strengthened

West Cobar Metals is making significant strides at its Salazar critical minerals project in Western Australia, with recent metallurgical testwork bolstering the case for a low-cost heap leach processing pathway. This promising development could pave the way for the project’s progression towards production, leveraging its substantial rare earth and critical mineral endowment.

Strengthening the Case for Heap Leaching

The core of West Cobar’s recent metallurgical efforts has focused on validating the suitability of heap leaching for the Salazar deposit. Preliminary testing has yielded encouraging results, confirming that the ore exhibits favourable characteristics for this processing method. Specifically, agglomeration and percolation trials have demonstrated the potential for efficient material handling and liquid movement, crucial elements for successful heap leach operations.

Furthermore, the use of sulphuric acid as a leaching agent has proven highly effective in extracting rare earth elements (REEs). This is a significant finding, as sulphuric acid is generally considered a more cost-effective and environmentally manageable reagent compared to alternatives like hydrochloric acid. The metallurgical testwork has shown that sulphuric acid leaching can achieve comparable, and in some instances, improved REE recoveries.

Key Metallurgical Findings

The metallurgical program is meticulously designed to refine a process flowsheet that will serve as the foundation for an upcoming scoping study. This study is intended to thoroughly assess the economic viability of bringing the Salazar project online. West Cobar Metals has highlighted that the current metallurgical data provides a robust basis for further optimisation and potential scale-up of the proposed processing route.

Key outcomes from the initial testwork include:

• Strong Rare Earth Recoveries: Baseline leach tests, utilising sulphuric acid, have demonstrated impressive total rare earth element (TREE) and yttrium extraction rates of up to 69% under the tested conditions.
• Sulphuric Acid Efficacy: The use of sulphuric acid has been confirmed as a viable and potentially more economical alternative to hydrochloric acid for leaching rare earths, achieving high extraction levels.

Matt Szwedzicki, Managing Director of West Cobar Metals, expressed optimism about these developments. “The progressive metallurgical results represent a significant step toward establishing a scalable development pathway for the Salazar project,” he stated. “The confirmation that sulphuric acid can achieve high rare earth recoveries in leaching has the potential to support a lower capital intensity development pathway and represents a significant step forward.”

Strategic Significance of the Salazar Project

The Salazar project is not just about processing; it’s about the strategic value of the minerals it contains. The deposit boasts a large and shallow mineral system, rich in a diverse suite of valuable commodities. These include:

• Rare Earth Elements (REEs): The project hosts a substantial rare earths resource of 230 million tonnes, grading 1178 parts per million total rare earth oxides (TREO).
• High-Value Heavy Rare Earths: Critically, the Mineral Resource Estimate (MRE) shows a significant proportion of high-value magnet heavy rare earths, specifically dysprosium (Dy) and terbium (Tb). These elements constitute 24.3% of the total REE basket composition. Dy and Tb are indispensable in the manufacturing of high-performance magnets used in electric vehicles, wind turbines, and advanced electronics.
• Scandium: Salazar also holds potential for generating high-grade scandium as a valuable co-product. Scandium finds critical applications in lightweight aluminium alloys for the aerospace and defence industries.
• Gallium: The project may also yield gallium, a vital element for the production of semiconductors and advanced electronic components.

Aligning with Global Demand

West Cobar Metals believes that the high concentration of heavy rare earths at Salazar positions the project favourably to meet the growing global demand for secure and traceable supply chains for magnet rare earths, particularly those sourced from outside China. The elevated presence of dysprosium and terbium is expected to command premium pricing, further enhancing the project’s economic potential.

Based on recent market prices from the Shanghai Metal Market, West Cobar estimates that dysprosium and terbium contribute approximately 25% of the project’s overall basket value.

“The enrichment in heavy rare earths dysprosium and terbium, which contribute disproportionately to rare earth value, significantly enhances project value and positions Salazar as a potentially strategic supply asset within global critical minerals markets,” Szwedzicki elaborated.

Next Steps and Future Outlook

With the metallurgical testwork providing a solid foundation, the immediate focus will be on commencing the scoping study. This study will be instrumental in evaluating the project’s economic feasibility and guiding future development decisions. The ongoing metallurgical optimisation work will continue to refine the process, aiming to maximise recoveries and minimise costs, further strengthening the proposition for a low-CAPEX heap leach operation at Salazar. The project’s diverse mineralogy and strategic positioning in critical commodities suggest a promising future as a key contributor to global supply chains.