Update: Ucore To Generate A 99%+ HREE Concentrate Using Mole
Summary
- Ucore recently announced that it is using molecular recognition technology in order to produce a high grade HREE concentrate from Bokan ore.
- This fits my thesis that Ucore is derisking the Bokan Project by developing an economic processing technique for exploiting the HREEs within.
- While this is a significant development, keep in mind that the company still needs to separate out the individual REE oxides before the Bokan Project can be deemed economical.
Ucore Rare Metals (OTCQX:UURAF) announced that it has recovered a high grade - 99%+ - HREE concentrate using molecular recognition technology (aka "MRT").
Investors will recall that in a recent discussion with management I discussed Ucore's intent to use a technology called "solid phase extraction" (aka "SPE"). Given that these are two different technologies, I spoke briefly with CEO Jim McKenzie, COO Ken Collison, and VP of Corporate Development Mark MacDonald in order to clarify the significance of this announcement and to get insight into the difference between MRT and SPE technologies.
The two technologies are similar in that they are both nano-scale technologies that attempt to "trap" the REEs in order to isolate them for exploitation. However, MRT utilizes bonding at the extra-molecular level, whereas SPE is intra-molecular.
Management arrived at the idea to use MRT technology given its research into SPE technology, and it believes that MRT will be simpler and more economical than SPE for extracting a high grade HREE concentrate from a pregnant leach solution.
Speaking more generally, at this point Ucore has gotten to the point where it can get from ore in the ground to a high grade HREE concentrate. Investors are encouraged to read the above cited article I wrote last month in order to get an idea of the entire process to date. I would also encourage investors to look at Ken Collison's recent presentation (11/12) in which he explains the process using visuals.
Investors need to keep in mind that Ucore has not yet fully developed a way to extract individual REEs from the HREE concentrate, and with that in mind there is still an uphill battle. Also consider that REE prices continue to trend lower. With that being said, of the more advanced HREE junior miners, Ucore has been an outperformer with shares up ~5% for the year. Only Northern Uranium (OTC:NOURF) - which is more advanced and more expensive than Ucore - has outperformed unless we start looking at far more speculative names in the space.
I continue to believe that Ucore is one of the more compelling REE companies, and it has shown tremendous support at ~$0.20/share. Nevertheless, this is a highly speculative sector and it requires an enormous amount of due diligence, patience, and risk tolerance.