Communicators

ASX: HYM

18 November 2021

-          Rare earth concentrates flotation test work identified a 97% overall recovery of rare earth minerals from a heavy mineral concentrate, providing the potential for a higher grade rare earth product than could be achieved without flotation

-          The successful flotation of rare earth minerals as a preliminary processing stage provides the potential for significant benefits to a future mineral separation plant design, including:

-          Design simplification compared to the separation of rare earth minerals at later processing stages

-          Reduction of potential contamination of downstream products, including titanium and zircon

-          Importantly, extraction of the highly valuable rare earths as a preliminary processing stage confirms the potential for significant optionality for product strategy and plant development, including phased capital development

-          The results were consistent with prior testwork, with Nd+Pr making up 21.3% of rare earths, and the highly valuable Tb+Dy making up 1.9% of rare earths

-          At current spot pricing, the potential basket price of the rare earth oxide products is ~US$50,000/t

-          The latest results continue to highlight the potential for west Tennessee to be a major source of conventional and sustainable rare earth minerals, and for Hyperion to be a major player in the U.S. rare earth supply chain

Anastasios (Taso) Arima, CEO and Managing Director said:

“The flotation test work results are a significant event in the development of Hyperion’s minerals business. The successful separation and high recovery of rare earth elements at the front end of the process via a simple flotation and upgrade circuit confirms the potential for significant optionality in Hyperion’s product marketing strategy.

Test work highlighting the simple separation of a rare earth concentrate product stream at the front end allows for significant optionality potential in process flow sheet design.

These results and the recent announcement of our maiden Mineral Resource Estimate continue to showcase the outstanding potential for Hyperion to develop a major source of critical mineral supply in this major untapped region in west Tennessee.”

This announcement has been authorized for release by the CEO and Managing Director.

For further information and enquiries please contact:

info@hyperionmetals.us

+1 704 461 8000

Hyperion Metals Limited (ASX: HYM) is pleased to announce that flotation testwork undertaken on rare earth mineral concentrates from the Titan Project highlights straightforward metallurgical characteristics and very high recoveries, indicating the potential for a processing route for rare earths extraction incorporating a simple upfront flotation and upgrade circuit.

REE concentrate flotation testwork program

The flotation testwork achieved an overall 97% recovery of rare earth minerals in the final rare earth concentrate, providing the potential for a higher grade rare earth product than could be achieved without flotation. Total rare earth oxides in the final rare earth concentrate made up a total of 57.4% of the minerals, which is broadly comparable to the test work undertaken in August 2021 with material sourced from the Benton deposit, which achieved total rare earth oxides of 58.7%. Within the rare earth fraction, Nd+Pr makes up 21.3% of rare earths, and the highly valuable Tb+Dy make up 1.9% of rare earths.

The testwork program consisted of a 1 tonne bulk sample from the Camden deposit being sent to Mineral Technologies for processing.  A heavy mineral concentrate (“HMC”) was generated using conventional feed preparation and wet gravity separation, with primarily spirals and a wet shaking table used for final stage upgrade. The HMC was processed through froth flotation to float the rare earth minerals from the other constituents, creating a rare earth stream and a HMC stream.

The rare earth stream was further upgraded on a wet shaking table to increase the concentration of a final rare earth mineral concentrate, with the HMC stream upgraded on a wet shaking table prior to being processed through a conventional mineral separation program, which is expected to be complete around the end of November.

Assays were conducted by Bureau Veritas in Perth, Australia, with standard XRF mineral sand assays used plus laser ablation / ICPMS for determination of individual rare earths.

Figure 1: Rare earth (LHS) and HMC (RHS) streams from wet shaking table tests after flotation

Potential low cost process options

The successful flotation of rare earth minerals as a preliminary processing stage provides the potential for significant benefits to a future mineral separation plant design, including design simplification compared to the separation of rare earth minerals at later processing stages, as well as the reduction of potential contamination of downstream products, including titanium and zircon.

Importantly, extraction of the highly valuable rare earths as a preliminary processing stage allows significant optionality for product strategy and plant development, including phased capital development.

Hyperion has worked with its engineers and consultants to evaluate various potential processing flow sheet options to be assessed as part of its ongoing scoping study, with consideration given to total capex, construction complexity, payback period and value in use of products. The potential options include:

1. Rare earth flotation only

-          Least amount of processing equipment and potential for lowest capital

-          Potential products – a rare earth concentrate and a heavy mineral concentrate rich in titanium and zircon

2. Rare earth flotation and electrostatic / magnetic separation

-          Additional processing equipment inducing magnetic separation

-          Potential products – a rare earth concentrate, rutile and ilmenite products and a zircon concentrate

3. Rare earth flotation, electrostatic / magnetic separation and zircon wet circuit

-          Additional processing equipment inducing magnetic separation and zircon upgrading

-          Potential products – a rare earth concentrate, rutile and ilmenite products and an upgraded zircon concentrate

4. Rare earth flotation, electrostatic / magnetic separation, zircon wet circuit and zircon dry circuit

-          Greatest amount of processing equipment and potential for highest capital

-          Potential products – a rare earth concentrate, rutile and ilmenite products and a premium zircon product

Figure 2: Potential procssing flow sheet options, including simple and conventional process to produce salable products

Hyperion’s rare earth testwork results also highlight the potential to produce a high-value rare earth co-product from a simple concentration and separation process and confirms the importance of the Titan Project as having the potential to rapidly become an important supplier of rare earths in the U.S. - and the only major U.S. supplier of heavy rare earths - critical to the nation’s defense capabilities.

Rare earth elements

Rare earth elements are used in many applications including battery alloys, catalysts, ceramics and metal alloys. However, it is the increasing demand for rare earths used in high strength permanent magnets found in power dense electric motors used in electric vehicles and wind turbines that makes up the majority of global consumption, accounting for ~90% of the global market by value in 2019 and expected to grow rapidly along with growth in EV and wind turbine production.

In particular, the heavy rare earths dysprosium and terbium are essential for the production of DyNdFeB (dysprosium neodymium iron- boron) magnets used in clean energy, military and high technology solutions.  There is only minor production of dysprosium and terbium outside of China, and no material production within the USA, and the potential production of these heavy rare earths within the USA is strategic and highly valuable to the country’s leading defense, EV and clean energy sectors. 

The significant proportions of Nd+Pr and Tb+Dy identified within Hyperion’s monazite and xenotime sample highlights the potential for a highly valuable rare earth product. Rare earth pricing has increased significantly from an already high base in the last few months, largely driven by significant supply shortages in nations such as Myanmar. At current spot pricing, the potential basket price of Hyperion’s product at the separated oxide stage is approximately US$50/kg, or US$50,000/tonne.

Table 1: Rare earth basket and basket price comparison between August 2021 and November 2021 test work programs[i]

About Hyperion Metals

Hyperion’s mission is to be the leading developer of zero carbon, sustainable, critical material supply chains for advanced American industries including space, aerospace, electric vehicles and 3D printing.

Hyperion holds a 100% interest in the Titan Project, covering approximately 11,000 acres of titanium, rare earth minerals, high grade silica sand and zircon rich mineral sands properties in Tennessee, USA.

Hyperion has secured an option to acquire Blacksand Technology, LLC, which holds the rights to produce low carbon titanium metal and spherical powers using the breakthrough HAMR & GSD technologies. The HAMR & GSD technologies were invented by Dr. Z. Zak Fang and his team at the University of Utah with government funding from ARPA-E.

The HAMR technology has demonstrated the potential to produce titanium powders with low-to-zero carbon intensity, significantly lower energy consumption, significantly lower cost and at product qualities which exceed current industry standards. The GSD technology is a thermochemical process combining low-cost feedstock material with high yield production and can produce spherical titanium and titanium alloy powders at a fraction of the cost of comparable commercial powders.

Hyperion also has signed an MOU to establish a partnership with Energy Fuels (NYSE:UUUU) that aims to build an integrated, all-American rare earths supply chain. The MOU will evaluate the potential supply of rare earth minerals from Hyperion’s Titan Project to Energy Fuels for value added processing at Energy Fuels’ White Mesa Mill.  Rare earths are highly valued as critical materials for magnet production essential for wind turbines, EVs, consumer electronics and military applications.

Forward Looking Statements

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, and achievements to differ materially from any future results, performance, or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements, or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

Competent Persons Statement – JORC Code 2012

The information in this announcement that relates to Exploration Results is based on information compiled and/or reviewed by Mr. Adam Karst, P.G. Mr. Karst is an independent consultant to Hyperion Metals Limited. Mr. Karst is a Registered Member of the Society of Mining, Metallurgy and Exploration (SME) which is a Recognized Overseas Professional Organization (ROPO) as well as a Professional Geologist in the state of Tennessee. Mr. Karst has sufficient experience which is relevant to the style and type of mineralization present at the Titan Project area and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the 2012 JORC Code). Mr. Karst consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources is extracted from Hyperion’s ASX Announcement dated October 6, 2021 (“Original ASX Announcement”) which is available to view at Hyperion’s website at www.hyperionmetals.us. Hyperion confirms that a) it is not aware of any new information or data that materially affects the information included in the Original ASX Announcement; b) all material assumptions included in the Original ASX Announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the Original ASX Announcement. The Mineral Resource Estimate (“MRE”) for the Titan Project comprises 431Mt @ 2.2% THM, containing 9.5Mt THM at a 0.4% cut-off, including 241Mt @ 2.2% classified in the Indicated resource category and 190Mt @ 2.2% classified in the Inferred resource category.

[i] Source: Metal.com