Aclara Announces Update ON Its Rare Earths Separation Project
ACLARA ANNOUNCES UPDATE ON ITS RARE EARTHS SEPARATION PROJECT
TORONTO, ON, October 15, 2024 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased
to announce the completion of a conceptual engineering study for its rare earths (“REE”) separation project,
currently being developed by its U.S. -based subsidiary, Aclara Technologies . Th e separation flowsheet
concept, based on solvent extraction , was developed in collaboration with the Saskatchewan Research
Council. This concept provided the foundation for Hatch to complete a Class 5 -AACE CAPEX and OPEX
estimate, while also incorporating robust environmental features such as significant waste reduction and
zero liquid discharge . The initial results are highly encouraging, and positions Aclara to become the first
vertically integrated heavy rare earths company outside of Asia.
Technical Study Highlights
• Separation of Key REE: Considers the separation of its mixed rare earth carbonates (“MREC”) to be
produced by the Company’s Carina Project and the Penco Module to obtain high-purity didymium1
(NdPr), dysprosium (Dy) and terbium (Tb).
• Proven Technology: The flowsheet process employs solvent extraction technology with hydrochloric
acid chemistry.
• High Purity: Achieves over 99.5% purity for all separated REE.
• Strong Metallurgical Recoveries: Expected metallurgical recoveries of 94% for NdPr, 92% for Dy and
91% for Tb.
• Environmental Features: Incorporates full water recirculation achieving no liquid discharge.
• Unoptimized CAPEX and OPEX: Initial CAPEX is estimated at US$ 354 million, which includes US$ 244
million for the solvent extraction plant and US$ 110 million to significantly reduce waste and achieve
zero liquid discharges. OPEX is estimated at US$ 12 per kg of rare earth oxides (REO).
• Synergies with Circular Mineral Harvesting Process: The development of the separation project has
uncovered significant synergies with Aclara’s proprietary circular mineral harvesting process, leading to
several new initiatives aimed at (i) reducing CAPEX and OPEX at both mine and separation stages, (ii)
minimizing waste management costs, and (iii) maximizing the quality of MREC output from the Carina
Project and Penco Module.
Next Steps
The Company has begun advancing the following activities as part of the next stage of development of its
separation project:
• Trade-off Chemistry: Conducting a trade -off study comparing the base case of hydrochloric acid
chemistry to a nitrate-based chemistry for the separation flowsheet process.
• Location Study: Conducting a detailed analysis within the U.S. to identify an optimal site for the
contemplated industrial separation facility, with the goal of maximizing efficiency and minimizing cost
and development timeline.
• Metallurgical Testing and Optimization: Executing bench scale and mini -pilot testing to optimize the
1 Didymium is a mixture of the elements praseodymium and neodymium (NdPr).
contemplated separation flowsheet, CAPEX and OPEX. Based on these results, the Company will assess
the implementation of an integrated piloting campaign and the development of a Class 3-AACE CAPEX
and OPEX engineering study.
Aclara’s COO, Barry Murphy, commented:
“We are encouraged and excited by the initial results from our REE separation project, which highlight our
commitment to vertically integrate while maintaining our high ESG standards across the value chain. As we
transition to the optimization phase of the project, we have been positively surprised by the numerous synergies
between our circular mineral harvesting process and our separation process. These synergies aim to optimize
CAPEX and OPEX by reducing steps and simplifying the integrated flowsheet, effe ctively resulting in more
competitive costs and expediting the time to market. At Aclara we remain committed to becoming a reliable and
responsible long-term supplier of heavy rare earths, providing the critical minerals that our planet urgently needs
in its race against climate change.”
Aclara´s Vertical Integration Strategy
The decision to integrate vertically responds to the need for creating a geopolitically independent supply chain
for permanent magnets, a much-needed performance enhancer for the motors of electric vehicles, wind
turbines, robotics and other applications associated with global decarbonization.
MREC Production
Aclara’s patented circular mineral harvesting technology for extracting heavy rare earths from ionic clays is
unique. Its proprietary process offers several environmentally attractive features, including a low carbon
footprint, very high levels of water recirculation (>95%) and adherence to circular economy principles. It does
not involve blasting, crushing, or milling, nor does it generate solid or liquid waste, thus eliminating the need
for a tailings dam. The ionic clay feedstock is amenable to leaching with a common fertilizer, namely
ammonium sulfate, which is fully compatible with the Company´s commitment to revegetate its impacted
areas.
Individual Oxides Production
Aclara Technologies is expected to source high purity MREC from Aclara’s Penco Module in Chile and Carina
Project in Brazil. These carbonates would then be separated into pure individual REO in the separation facility.
Rare Earths Alloys Production
In parallel, Aclara has started to develop its metals and alloys capabilities through a joint venture with CAP
S.A., the Company’s strategic partner in Chile. Aclara’s goal is to be able to connect all aspects of the
production of clean rare earths up to the point where they meet the specification demanded by permanent
magnet manufacturers.
About Aclara
Aclara Resources Inc. (TSX: ARA) is a development-stage company that focuses on heavy rare earth mineral
resources hosted in Ion -Adsorption Clay deposits. The Company’s rare earth mineral resource development
projects include the Penco Module in the Bio-Bio Region of Chile and the Carina Module in the State of Goiás,
Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. Circular mineral
harvesting does not involve blasting, crushing, or milling, and therefore does not generate tailings and
eliminates the need for a tailing’s storage facility. The extraction process developed by Aclara minimizes
water consumption through high levels of water recirculation made possible by the inclusion of a water
treatment facility within its patented process design. The ionic clay feedstock is amenable to leaching with a
common fertilizer main reagent, ammonium sulfate. In addition to the development of the Penco Module and
the Carina Module, the Company will continue to identify and evaluate opportunities to increase future
production of heavy rare earths through greenfield exploration programs and the development of additional
projects within the Company's current concessions in Brazil, Chile, and Peru.
Aclara has decided to vertically integrate its rare earths concentrate production towards the manufacturing
of rare earths alloys. The Company has established a U.S. -based subsidiary, Aclara Technologies Inc., which
will focus on developing technologies for rare earth separation, metals, and alloys. Additionally, the Company
is advancing its metals and alloys business through a joint venture with CAP S.A., leveraging CAP’s extensive
expertise in metal refining and special ferro-alloyed steels.
Forward-Looking Statements
This news release contains “forward -looking information” within the meaning of applicable securities
legislation, which reflects the Company’s current expectations regarding future events, including statements
with regard to the Company’s corporate strateg y; expectations as to activities conducted in connection with
its separation project, the Carina Project and Penco Module, timelines for completion and the success, effect
or outcomes resulting therefrom; the development of a separation facility and the related studies in relation
thereto; the Company’s vertical integration strategy; and plans as to expenditures, inve stments, and use of
capital and financial resources in the near and long term. Forward-looking information is based on a number
of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the
Company’s control. Such risks and uncertainties include, but are not limited to, the factors discussed under
“Risk Factors” in the Company’s annual information form dated as of March 22, 2024 filed on the Company’s
SEDAR profile. Actual results and timing could differ materially from those projected herein. Unless otherwise
noted or the context otherwise indicates, the forward -looking information contained in this news release is
provided as of the date of this news release and the Company does not undertake any obligation to update
such forward-looking information, whether as a result of new information, future events or otherwise, except
as expressly required under applicable securities laws.
For further information, please contact:
Ramon Barua
Chief Executive Officer