Leading Edge Materials Commences Preliminary Economic Assessment Study on the Norra Karr Ree-Project
Leading Edge Materials Commences
Preliminary Economic Assessment Study on
the Norra Karr Ree-Project
VANCOUVER, BC
,
Aug. 27, 2020
/CNW/ -
Leading Edge Materials Corp.
("
Leading Edge
Materials
" or the "
Company
") (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) has
commissioned SRK Consulting (UK) Limited ("SRK") to produce a Preliminary Economic Assessment
study (the "PEA") on the Norra Karr heavy rare earth element project (the "Project") to include the
additional potential of by-product revenues and associated reduced environmental footprint.
In 2015 a Pre-Feasibility Study (the "PFS") was completed on the Project which only presented rare
earth elements ("REE") as an economic product
1
. However, a range of opportunities were identified
to convert much of the discarded mined materials into products for sale, with the advantage of also
lowering the environmental footprint of the Project.
The Norra Karr deposit is a nepheline syenite intrusion and in addition to REE is also enriched in
zirconium, hafnium and niobium. The mineral eudialyte is the principal host for all these metals.
Swedish mining company Boliden AB held Norra Karr the Project in the 1970s and 80s with a view to
produce nepheline, feldspar and zirconium. In contrast, in the 2015 PFS, REE was the only material
extracted as a product with the rest of the mined material ending up as waste.
Leading Edge Materials commissioned an internal review report from SRK (the "SRK Report") to
prepare a gap analysis and initial assessment of the merit and benefits to the Project to also
produce a by-product of nepheline syenite which is an industrial mineral used in the ceramics, glass
and functional filler markets. The final report prepared by SRK confirms that a potential nepheline
syenite product exists at Norra Karr. Based on metallurgical testwork included in the PFS and
subsequent testwork, the SRK Report concludes that conservatively half the nepheline syenite could
potentially comprise a saleable product. Importantly, the SRK Report identifies that by doing so may
be able to reduce at least 33% of the total overall waste material for the Project which in turn may
possibly greatly reduce capital and operating costs associated with waste management for the
Project.
Encouraged by the findings in the SRK Report, Leading Edge Materials has commissioned SRK to
produce a Preliminary Economic Assessment study for the Project. Main objectives of the PEA are
to include a nepheline syenite product in the mineral resource, review advancements in processing
alternatives to potentially extract more valuable materials such as zirconium, hafnium and niobium in
addition to a potential improve recovery of REE, and lastly to undertake a trade-off study between
on- and off-site processing. The ambition with these main objectives is to maximize resource
efficiency and minimize environmental footprint of the Project. The latter demonstrated by the below
simplified and illustrative table as provided in the SRK Report.
____________________________
1
See report "Prefeasibility Study – NI 43-101 – Technical report for the Norra Kärr Rare Earth Element Deposit" dated 13th January 2015 available at
www.sedar.ca
Table: Alternative tailings storage requirements
Processing
Magnetic
Solid waste remaining on site
[% total mineralized material]
Total waste
alternative
Nepheline feldspar
concentrate
Waste A
Nepheline
feldspar
Waste B
Leach
residue
Waste C
Neutralized
residue
[% total mineralized
material]
Option 1
[as previous study]
All remains on site
Leaching on site
65%
25%
7%
97%
Option 2
Shipped off site
65%
-
-
65%
Option 3
Assume half sold off
site
Leaching on site
33%
25%
7%
65%
Option 4
Shipped off site
33%
-
-
33%
Filip Kozlowski
, CEO states
"The potential for by-product revenues and reduced environmental
footprint for the Norra Karr project was already identified in the 2015 Pre-Feasibility Study. In this
Preliminary Economic Assessment we now have the opportunity to incorporate subsequent test-
work and process advancements into a new improved design of the project and taking a holistic
view on what is sustainable both economically and environmentally. Norra Karr is one of the most
significant heavy rare earth projects globally and is unusually enriched in some of the materials
critical for the production of permanent magnets, such as dysprosium and terbium. Importantly,
compared with other REE deposits, Norra Karr demonstrates some of the lowest grades of the
radioactive elements uranium and thorium which normally is a problem during processing. As
western governments are increasingly taking action to reduce dependency on
China
for the supply
of permanent magnets Norra Karr provides a unique opportunity for the European Union to source
these critical materials within its borders under world leading sustainability standards. It is our
responsibility to develop the Norra Karr project together with all stakeholders in such a way that
these ambitions and goals can be realized for the benefit of European industry."
Norra Karr is one of the world's principal heavy REE resources, with an unusual enrichment in the
most critical REEs that are essential for high strength permanent magnets (dysprosium (Dy), terbium
(Tb), neodymium (Nd) and praseodymium (Pr). Permanent magnets are directly linked and critical to
the energy transition due to their applications in electric motors and wind power. Located in southern
Sweden
approximately 300km SW of
Stockholm
close to extensive existing infrastructure, Norra
Karr is the only heavy REE deposit of note within the European Union (see ERECON project, 2015)
and provides the EU with the long-term opportunity to reduce reliance on imported REE.
Mr.
Mark Saxon
, B.Sc. Hons (Geology), a Fellow of the Australasian Institute of Mining and
Metallurgy, technical advisor to the Company and a qualified person under National Instrument 43-
101, has reviewed and approved of the scientific and technical disclosure in this news release.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Filip Kozlowski
, CEO
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical
raw material projects located in the European Union. Critical raw materials are determined as such
by the European Union based on their economic importance and supply risk. They are directly linked
to high growth technologies such as lithium-ion batteries and permanent magnets for electric motors
and wind power that underpin the sustainability transition of society. The portfolio of projects
includes the 100% owned Woxna Graphite mine (
Sweden
), Norra Karr HREE project (
Sweden
),
Bergby lithium project (
Sweden
) and the 51% owned Bihor Sud Nickel Cobalt exploration alliance
(
Romania
).
Additional Information
Relevant supporting documentation and the Company's consolidated financial statements and related
management's discussion and analysis are available on the Company's website at
www.leadingedgematerials.com
or under its profile on SEDAR at
www.sedar.com
The information was submitted for publication through the agency of the contact person set out
above, on
August 27, 2020
, at
4:00 AM
Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol "LEM", OTCQB under the symbol
"LEMIF" and Nasdaq First North Stockholm under the symbol "LEMSE". Mangold Fondkommission
AB is the Company's Certified Adviser on Nasdaq First North and may be contacted via email
or by phone +46 (0) 8 5030 1550.
Reader Advisory
This news release may contain statements which constitute "forward-looking information" under
applicable Canadian securities laws, including statements regarding the existence of a potential
nepheline syenite product at Norra Karr and that half of the nepheline syenite could potentially
comprise a saleable product; the potential to reduce at least 33% of the total overall waste material
for the Project which in turn may possibly greatly reduce capital and operating costs associated
with waste management for the Project; as well as plans, intentions, beliefs and current
expectations of the Company, its directors, or its officers with respect to the future business
activities of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate",
"believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its
management, are intended to identify such forward-looking information. Investors are cautioned
that any such forward-looking information is not a guarantee of future business activities and
involves risks and uncertainties, and that the Company's future business activities may differ
materially from those in the forward-looking information as a result of various factors, including,
but not limited to, fluctuations in market prices, successes of the operations of the Company,
continued availability of capital and financing and general economic, market or business
conditions. There can be no assurances that such information will prove accurate and, therefore,
readers are advised to rely on their own evaluation of such uncertainties. The Company does not
assume any obligation to update any forward-looking information except as required under the
applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of
this news release.
SOURCE
Leading Edge Materials
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%SEDAR: 00031410E
For further information:
please contact the Company at: 1.604.685.9316,
[email protected], www.leadingedgematerials.com
CO: Leading Edge Materials
CNW 07:00e 27-AUG-20