News Releases

July 28, 2010
EMC Receives Report on Capital & Operating Cost Estimates for the Nyngan Scandium JV Project in NSW, Australia

Vancouver, British Columbia - July 28, 2010 - EMC Metals Corp. (the "Company" or "EMC") (TSX: EMC) is pleased to announce that it has received an independent engineering report, titled, "Scandium Recovery From Gilgai Laterite" (the "Report"), outlining the estimated capital and operating costs for a 200 tonne per day ("tpd") facility to extract and recover scandium oxide (Sc2O3) from resources at the Nyngan (Gilgai) scandium deposit. The Report, commissioned by EMC, was prepared by Roberts & Schaefer Co., of Salt lake City, Utah, USA and provides key financial and operating parameters for a preliminary economic assessment ("PEA") on the Nyngan Scandium Project, to be completed before the end of the year. The Nyngan Scandium Project is a joint venture between EMC and Jervois Mining Ltd. ("Jervois") (ASX: JRV), and is located in New South Wales, Australia.

Highlights of the Report are as follows:

  • Capital costs for the laterite processing facility are estimated at US$56 million, including US$15 million for a sulphuric acid plant on site,
  • Processing costs are estimated at less than US$300/kg Sc2O3,
  • The hydrometallurgical plant is designed to process in excess of 200 tpd of resource,
  • Production of Sc2O3 is estimated at 28,000 kilograms per year, and
  • Process assumptions are proprietary, follow earlier work done by METCON Research and the CSIRO of Australia, and include standard and accepted processes for applying  ore preparation, leaching, solvent extraction and product preparation methodologies.

Discussion of Report results:

EMC engaged Roberts & Schaeffer in April 2010 to develop a capital and processing cost estimate for a scandium oxide production facility, based on the laterite scandium resource at Nyngan, controlled in a 50/50 joint venture with Jervois. Scandium grades and rock characteristic assumptions were based on the independent NI 43-101 resource estimate on the project filed on SEDAR in April 2010. The overall scope of the study included provision of the following outputs:

  • A block flow diagram with material balances for the major process streams,
  • An equipment list with cost estimates (+/- 50% accuracy),
  • Process flow diagrams,
  • A facilities site plan and a general arrangement for equipment,
  • An operating cost estimate based on process flows and recoveries, and
  • An estimate of final product output volumes.

Note that mineral resources that are not mineral reserves do not have demonstrated economic viability. These estimates of capital and operating costs are a component of a number of factors required to complete a preliminary assessment of the economic viability of the project, and there is no guarantee that the company will achieve production from the resource at Nyngan. 

The process flow sheets were based on technical reports done for Jervois or EMC on various metallurgical aspects of the resource. These reports were done by METCON Laboratories of Sydney Australia, the Commonwealth Scientific and Industrial Organization (CSIRO) in Australia, or by other research work, proprietary to or sourced by Jervois or EMC. The bulk of the process applied by Roberts & Schaefer in the Report was defined by bench scale as well as small scale pilot plant work results, and a preliminary flow sheet complied by the CSIRO. 

Additional metallurgical work under EMC's supervision has been initiated with Hazen Research, of Denver, Colorado. Hazen Research will conduct a number of metallurgical tests and pursue the viability of several modified processes. This work is supported by a tonnage sample of Nyngan scandium resource material, delivered to the Hazen facility in early July. The Hazen test-work is scheduled for completion prior to year end, and will potentially offer improvements to the capital and operating cost figures derived from previously defined processes in the Roberts & Schaefer Report. These updated results are expected to form the basis of a pre-feasibility study (PFS) in mid-2011.

Mr. George Putnam, CEO of EMC commented as follows:

"We are pleased to see these early capital and operating cost figures from the Roberts & Schaefer work come back as we had envisioned in our initial analyses. This work now gives us the basis from which to make process improvements, concentrate on higher cost areas, and understand where the opportunities are to increase yields and address process losses. This work plan keeps us on track to complete the next phase of metallurgical testing by the end of November. "

About EMC Metals

EMC Metals is focused on application of its in-house and patented mineral recovery technologies to deliver value in specialty metal and rare earth projects. EMC's high priority development opportunity is the Nyngan Scandium Joint Venture with Jervois Mining Ltd. of Melbourne, Australia. The Company released results of it's first National Instrument ("NI") 43-101 resource estimate for the Nyngan Scandium Project in March 2010, announcing a measured and indicated resource of 12 million tonnes, grading 261ppm Sc, based on a cut-off grade of 100ppm Sc (NI43-101 Technical Report on Nyngan Scandium, Jervois Mining Limited, Nyngan, New South Wales, Australia, March 25, 2010). The Company is currently doing metallurgical test-work on the Nyngan resource material, to define and refine flow sheet studies, recovery estimates and capital cost estimates for the project.

EMC also holds two tungsten assets; the Springer Tungsten property in Nevada, USA and the Fostung Tungsten project in Ontario, Canada. Both tungsten assets have NI 43-101 compliant resource estimates, and the full reports are available on the Company website and on SEDAR. The Springer tungsten asset is a fully permitted, established underground mine and milling facility with a 1,200tpd throughput capability to produce a high grade scheelite (WO3) concentrate product. The Springer mine and mill are currently not in operation. The Company also holds the Carlin Vanadium property, near Carlin, Nevada, with a recently released NI 43-101 inferred resource estimate of 25.4 million tonnes, grading 0.5% V2O5, based on a cut-off grade of 0.30%, or 289 million lbs of total contained V2O5 (NI 43-101 Technical Report on Resources, EMC Metals Corp., Carlin Vanadium Project, Carlin, Nevada, April 30, 2010).

Technical information in this news release has been reviewed by Gilles R. Dessureau, M.Sc. P.Geo a Qualified Person for the purposes of NI 43-101. Mr Dessureau is a Professional Geologist employed by EMC Metals.

©2023 Scandium International Mining Corporation
All rights reserved.