Red Metal begins large-scale heap leach tests at QLD rare earths project

Six-metre column trials aim to de-risk low-cost processing for multi-billion-tonne Sybella deposit

By LineZotpaper
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Red Metal has commenced six-metre column leach tests to simulate a commercial-scale heap leach at its Sybella rare earths project in Queensland, a step the company says is critical to de-risking a low-cost processing route for its huge resource. The program follows a successful two-metre trial and forms part of a prefeasibility study due early next year.

Red Metal has launched a significant phase of metallurgical testwork at its Sybella rare earths project in Queensland, starting six-metre-tall column leach tests designed to replicate the conditions of a full-scale commercial heap leach operation.

The tests are being run on slightly weathered rock and transitional ore from the project's Kary Zone deposit, 20 kilometres south of Mount Isa. The company plans to load crushed ore into 150-millimetre-diameter columns standing six metres high. In heap leaching, a chemical solution is trickled through the crushed ore to dissolve the valuable metals, which are then collected for recovery.

Red Metal managing director Rob Rutherford described the work as an important step toward validation. “This important next step far more closely replicates the compaction, percolation and acid distribution behaviour we expect inside a full-scale commercial heap leach,” he said.

The new program builds on an earlier two-metre column test program that the company said delivered neodymium extraction of up to 76 per cent and praseodymium extraction of up to 78 per cent from transitional ore. The prize for Red Metal is a low-cost processing route for what it describes as a geologically unique and potentially globally significant deposit. The company has defined a 4.795-billion-tonne inferred resource at Sybella, where the scale and potential for zero-strip mining make bulk-tonnage processing methods such as heap leaching an attractive option.

In a concurrent program, the company has also started two-metre column tests to assess a coarser crush size. Management says proving a coarser grind can still deliver strong recoveries could be a game-changer for the project's economics, lowering crushing costs and potentially allowing higher stacking heights on leach pads. Results from both the six-metre and the coarser-crush two-metre tests are expected to be reported as they become available. The work forms part of an ongoing prefeasibility study targeted for completion early next year.

Red Metal is also pursuing a “Big Copper” exploration strategy, targeting iron-oxide-copper-gold discoveries in Queensland's north-west. The company recently lodged 17 new tenement applications around its Gulf and Three Ways projects and is planning two fully-funded drill holes, with the Gulf hole partly funded by a $200,000 Queensland Government grant.

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Analysis

Why This Matters

  • The Sybella project is one of the largest rare earths deposits globally. Successfully demonstrating a low-cost heap leaching method could help position it as a major future supplier of neodymium and praseodymium, critical minerals used in magnets for electric vehicles, wind turbines and defence systems.
  • Heap leaching is a relatively low-cost bulk-tonnage method. If proven viable at this scale, it could make economic sense to develop a resource that would be uneconomical to process through conventional hard-rock mining.
  • The results of these column leach tests will directly inform the project's prefeasibility study and influence the company's ability to attract project financing.

Background

Red Metal's Sybella deposit is located in Queensland's North West Minerals Province. The company has outlined a 4.795-billion-tonne inferred resource at the project, which some resources commentators have compared in scale to the giant Escondida copper mine in Chile. The deposit's geological characteristics suggest it could be suited to heap leaching, avoiding the need for costly strip mining and milling. The company is currently conducting a prefeasibility study on the project. Separately, Red Metal is actively exploring for copper in the same region, having expanded its tenement holdings and secured a state government grant for drilling.

Key Perspectives

  • Red Metal (Developer): The company has positioned the column leach tests as a crucial de-risking milestone. It is pursuing a low-cost processing route to make the giant resource economically viable. The managing director has stated that the scaling from two-metre to six-metre columns more closely replicates full-scale commercial conditions.
  • Industry Observers: The project's sheer scale makes it globally notable. Success would represent a significant new source of rare earths outside of China, which currently dominates global supply chains for these critical minerals.
  • Skeptics: The transition from pilot-scale column tests to a multi-billion-tonne commercial heap leach operation involves considerable technical and environmental challenges. Reagent consumption, recovery rates over time, and the long-term physical stability of the leach pad are key questions that must be proven before the project can advance. The project remains in the prefeasibility stage.

What to Watch

  • Results from the six-metre column tests and the coarser-crush two-metre tests as they are reported.
  • Completion of the prefeasibility study, currently targeted for early next year.
  • Red Metal's progress on its planned copper drilling at the Gulf and Three Ways projects.

Sources

Checked

11 claims in this story checked against 1 source: 9 supported.

Show each claim
  1. Partly supportedRed Metal has begun large-scale heap-leach tests at its Queensland rare-earths project.Brisbane Times - Latest News: “Red Metal has commenced six-metre-tall column leach tests to simulate a commercial-scale heap leach for its giant Sybella rare earths project in Queensland.”
  2. Partly supportedThe six-metre program is a critical step that the company says will de-risk a low-cost processing route.Brisbane Times - Latest News: “The program marks a significant de-risking milestone for the project”
  3. SupportedThe six-metre column tests are designed to simulate a commercial-scale heap leach at Sybella in Queensland.Brisbane Times - Latest News: “Red Metal has commenced six-metre-tall column leach tests to simulate a commercial-scale heap leach for its giant Sybella rare earths project in Queensland.”
  4. SupportedThe tests use slightly weathered rock and transitional ore from the Kary Zone, about 20 kilometres south of Mount Isa.Brisbane Times - Latest News: “The new tests are being run on slightly weathered rock and transitional ore from Sybella’s Kary Zone deposit, which sits just 20km south of the major mining hub of Mount Isa.”
  5. SupportedRob Rutherford said: “This important next step far more closely replicates the compaction, percolation and acid distribution behaviour we expect inside a full-scale commercial heap leach.”Brisbane Times - Latest News: “Red Metal managing director Rob Rutherford said: “This important next step far more closely replicates the compaction, percolation and acid distribution behaviour we expect inside a full-scale commercial heap leach.””
  6. SupportedAn earlier two-metre column program delivered neodymium extraction of up to 76 per cent and praseodymium extraction of up to 78 per cent from transitional ore.Brisbane Times - Latest News: “The final validation is expected to build on Red Metal’s previously successful two-metre column program that delivered impressive neodymium extraction of up to 76 per cent and praseodymium extraction of up to 78 per cent from transitional ore.”
  7. SupportedRed Metal has defined a 4.795-billion-tonne inferred resource at Sybella.Brisbane Times - Latest News: “The company has already defined a monster 4.795-billion-tonne inferred resource at Sybella”
  8. SupportedThe company has started two-metre column tests to assess a coarser crush size, and results from those and the six-metre tests are expected as they become available.Brisbane Times - Latest News: “In a concurrent program, the company has also started a series of two-metre column tests to assess a coarser -30mm crush size. ... Management says it will report results from both the six-metre and the coarser-crush two-metre tests as they become available.”
  9. SupportedThe work is part of a prefeasibility study targeted for completion early next year.Brisbane Times - Latest News: “The work forms part of an ongoing prefeasibility study (PFS), targeted for completion early next year.”
  10. SupportedRed Metal recently lodged 17 new tenement applications around its Gulf and Three Ways projects.Brisbane Times - Latest News: “The company recently expanded its copper hunt, lodging 17 new tenement applications around its Gulf and Three Ways projects”
  11. SupportedThe Gulf drill hole is partly funded by a $200,000 Queensland Government grant.Brisbane Times - Latest News: “with the Gulf hole partly funded by a $200,000 Queensland Government grant.”

Zotpaper

Written by Harper Lane on the Business & markets desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub.

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