RE: The Gold Report ......Stans energy------------ Thanks for the article, I copied and pasted the part about Stans
Nice to hear some recognition from an "expert"
TCMR: Let's get into some other processing developments. Stans Energy Corp. (HRE:TSX.V), with the Russian Research Institute of Chemical Technology, has successfully tested a process for extracting thorium, radium and fluorine from REE concentrates at Stans' Kutessay II mine in Kyrgyzstan. What could this mean to a relatively small company like Stans?
GH: On its face, this is encouraging news, but I would need to see an associated independent technical report to be able to properly evaluate the developments. Stans has also acquired a processing facility that will eventually handle the concentrate from Kutessay II, if it can be verified and scaled up. The key is adding value to the material and not just stopping at a concentrate. In this respect I think that Stans is spot on—not looking to do more than just sell a HREE concentrate leaves a lot of money on the table.
TCMR: Stans also announced that it has produced 99.9% pure dysprosium and terbium and 99% gadolinium metal at the Kashka REE processing plant. A lot of companies have produced the oxides, but few have produced the actual metals. Does that increase Stans' likelihood of getting project financing?
GH: If a company can demonstrate that it has a process that's economic and scalable, then sure, that can help its outlook when it comes to raising the money to do the final engineering and construction. Companies typically need to have offtake agreements or other commitments from customers and end-users in this sector to raise the kind of money that's going to be needed. Being able to produce either an oxide or a metal to purity levels that are of interest to end-users is no doubt a positive thing—if it can scale.
Stans is one of the very few companies (if not the only one) that has produced HREE metals outside of China, as part of its piloting work. You don't always want to produce a metal though. Metals, REE metals in particular, are very reactive. One of the reasons that companies frequently stop at the oxide, or some other compound, is so that there is a stable form of the material to send to the end-user or customer, who can then convert it into the metal form, or even an alloy, rather than storing it and having it corrode or oxidize over time. You have to manage these materials and they have a finite shelf life.
TCMR: Even when these metals are employed in various applications, whether they be magnets or whatever, they're actually changing as they're in use?
GH: That's actually a more complex question than you might think, but let me give you a short answer. When you make a permanent magnet based on, for example, neodymium, you're actually making an alloy—i.e. a chemical compound that contains different metals. The precursor for such an alloy needs neodymium, iron and boron, as well as dysprosium, cobalt and some other trace elements. You'd melt those together and produce an alloy, with a very specific ratio of those particular elements to each other. Once the neodymium and the dysprosium are in that magnet, they're acting as part of a distinct chemical phase, one of a number present in the magnet, each with a specific job to do.
TCMR: These other elements in that alloy are stabilizing REEs?
GH: That can be a secondary effect, but really we should think about it in terms of the presence of the REEs helping to enhance the natural magnetic properties of the iron present.
TCMR: If the metals are somewhat unstable, why would Stans go to those lengths to develop the metals?
GH: If a company can produce metals to a particular specification and an end-user is willing to buy those metals on that basis, that's a perfectly fine approach to take. The question concerns the practicality of handling those materials, especially as you go to higher starting purity levels. There's a lot of energy required to convert an oxide to a pure metal, particularly with the REEs. It's balancing the ability to store something on a shelf for a long period of time—and even as an oxide, you may still see some deterioration of the material in less than strictly controlled conditions—and flexibility with respect to inventory and stockpiling at the industrial level. This is the cost and the hassle of turning that oxide into a metal that's ready for use, when you need it.