At the end of July, DM began preparing the drilling site and hopes to start expanding its reserves in 2021.
The Weiqida rare earth mine, located 80 kilometers northeast of Prince George Island, has a presumed ore resource of 4.89 million tons with a light rare earth (LREO) grade of 3.02%; an estimated ore resource of 12.1 million tons and a LREO grade of 2.90%.
In January, the company commissioned the Saskatchewan Research Institute (SRC,Saskatchewan Research Council)) to complete a study on the applicability of X-ray transmission separation using Wechida ores.
"We provide ore raw materials, concentrate is processed at SRC's production facilities, and transport from Prince George to Saskatchewan does not need to cross the border," said Taylor, CEO of DM.
Although the market share of light rare earths used in the defense industry is small, its importance lies in the critical application of rare earths in some military equipment, such as jet engines, missile guidance systems, anti-missile defense systems, satellites and lasers.
Mount pass Materials (MP Materials Corp) is the only rare earth mine in the United States at Mount pass Mine in California, but its concentrate is shipped to China for processing. Australia's Vithal Metals Company (Vital Metals), Canada's first rare earth producer, is expanding its operations through mineral rights acquisitions in Quebec with its project at the Nichalacho (Nechalacho) mine in the Northwest.
On Tuesday, a Republican member of the U.S. House of Representatives introduced a bill to provide tax credits for companies that produce rare earth permanent magnets in the United States. It is the latest move by the US to implement a key mining strategy aimed at ensuring a safe supply of lithium, rare earths and other minerals for electric vehicles, weapons and electronics.
The CEO of DM pointed out that rare earths are widely used in the military, and the United States has been soberly aware of the reality and has begun to take measures to build a domestic supply chain.
Wichita plans to produce rare earth elements for the defense industry, including neodymium, praseodymium, cerium and lanthanum. The (IEA) of the International Energy Agency predicts that the penetration of electric vehicles will increase tenfold by 2030. As a result, Taylor expects a shortage of neodymium and praseodymium.
In 2019, DM applied to be the preferred supplier under the Defense production Act (DPA). Last year, DPA released a technology market research report that clarified DM's position in the light rare earth supply chain.
According to the report, Weiqida rare earth ore resources are estimated to be 11.37 million tons, with a REO grade of 2.5%. A rough study on this basis shows that a mine with 2000 tons of ore per day and 740000 tons of ore processed annually can be built, and the life of the mine is expected to be 15 years.
Taylor insisted on the importance of Wechida rare earth resources for military applications, noting that "we want investment from the Department of Defense and the Department of Energy, but that is not enough." According to relevant data, 920 pounds of rare earth material is needed for each stealth Fmuri 35 attack fighter. Each Alibok DDG-51 destroyer costs 5200 pounds and an SSN-774 Virginia-class submarine needs 9200 pounds.
Weiqida plans to drill 2000 to 5000 meters in 2021, focusing on exploring the extension of rare earth mineralized dolomite-carbonate rocks to the north, and further delineating the existing speculated resources in the middle and northwest of the deposit.
