Locksley Resources Limited is excited to announce that REE field exploration at the Mojave Project is scheduled to commence in the coming days.
Highlights:
• Exploration field activities are planned to commence at the Mojave Project within the coming days
• Multiple REE targets have been identified within the Mojave Project
• Significant outcropping REE’s rock samples have been identified with TREO results up to 9.49%2
• The Mojave Project lies 1.4km to the north-east of the Mountain Pass Mine, the largest REE mine in the US and the largest producer of high-grade rare-earth materials in the western hemisphere, delivering approximately 15% of the global rare earth supply2
Locksley Resources Limited (ASX:LKY) (“Locksley” or “the Company”) is partnering with US based experts to assist Locksley in advancing to the next stage of field exploration activities at the Mojave Project in California.
On ground field work is expected to commence at the Mojave Project, within the coming days. The Mojave Project comprises of 201 mineral claims and is situated within 1.4km of the Mountain Pass Mine, the only producing Rare Earth Mine in the USA and one of the richest rare earth element deposits in the world.
The Mountain Pass Mine boasts an average rare earth content of 7%1 and is one of the highest grade REE mines in the world. Mountain Pass Mine is the largest producer of high-grade rare-earth materials in the western hemisphere, delivering approximately 15% of the global rare earth supply.2
Locksley Resources Limited Managing Director, Steve Woodham stated:
“The expansion of Locksley Resources into the Rare Earth Elements sector is a highly anticipated step forward for the Company. The surging global demand in the renewable sector especially within the EV, quantum computing, material sciences and medical applications market is unprecedented.
Having boots on the ground via a highly skilled exploration team with multiple REE targets within eyesight of the world’s richest Rare Earth deposits in the western hemisphere, is exceptional.
Having the prospect to expand on existing strong targets, with further multiple high grade carbonatite veins, highlights the importance of the imminent exploration program at the Mojave Project.
The Directors are certainly looking forward to reporting the findings to the shareholders, in this highly prospective region of REE”.
Locksley representatives will have boots on ground at the Mojave Project within the coming days, with the intention of conducting field mapping of identified outcropping REE mineralisation on the El Campo Prospect and reconnaissance across the Mojave Project north and south blocks. The El Campo Prospect has an already identified mineralised breccia with surface rock chip samples assaying up to 9.49%2 TREO and in close proximity to the Mountain Pass Mine.
Figure 1: EL CAMPO PROSPECT – Rockchip geochemistry on aerial photography
The Mojave Project consists of three areas: The North Block is comprised of 164 claims totalling 14.9km², South Block comprising of 32 claims totalling 3.5km², and the El Campo Prospect comprising of 5 claims totalling 0.34km².
Figure 2: MOJAVE PROJECT – Location of the Mojave Project Blocks in south-eastern California, USA
REE GLOBAL SUPPLY & DEMAND
The total demand for Rare Earth Oxides (REOs) is expected to increase from 208,250 metric tons in 2019 to a forecasted 304,678 metric tons by 2025.3 73% of REE are used in mature industries and the remaining 27% are used in the production of permanent magnets, which are essential components in EVs.4
Global sales of electric vehicles (EVs) continued to be strong. A total of 10.5 million new (both EV and hybrid) EV’s were delivered during 2022, with an increase of +55% compared to 2021.5 EV sales in the USA and Canada increased by 48% year-on-year while EV sales in China increased by +82% year-on-year.6
China has the highest reserves of rare earth minerals at 44 million MT. The country was also the world’s largest, rare-earth producer in 2022, putting out 210,000 MT. The US reported the second highest output of REE in 2022 at 43,000 MT and takes the sixth top spot in global REE reserves at 2.3 million MT.
Australia was the third largest REE mining country in 2022 with 18,000 MT of REE production and has the fifth largest reserves of REE in the world at 4.2 million MT. Vietnam has the world’s second highest REE reserves at 22 million MT and is the world’s fourth highest REE producer during 2022, totalling 4,300 MT of REE production. Brazil, Russia and India have encouraging reserves with Brazil and Russia having the third largest REE global reserves at 21 million MT although are not major producers of REE during 2022.7
THE FUTURE OF REE
REE are likely to remain an important part of our future, from quantum computing and material sciences to medical applications and advances in green technology.8 The growth of wind farms will continue to drive demand for neodymium and dysprosium used in wind turbine motors and the move from internal combustion cars to EVs will also increase demand for permanent magnets. The International Energy Agency (IEA) forecasts the EV fleet will grow from 3.1 million in 2017 to 125 million in 2030. Given that an electric vehicle requires between 1 kg to 2 kg of permanent magnets, the REE market is set to expand massively over the next decade.9 Global demand for neodymium is expected to grow 48% by 2050, exceeding the projected supply by 250% by 2030, and the need for praseodymium could exceed supply by 175%.10
The Board of Directors of Locksley Resources Limited authorised the release of this announcement.
1. Mountain Pass Mine website https://mpmaterials.com/what-we-do/ - visited July 7, 2023
2. LKY Announcement – 15 June 2023
3. Garside, M. (2021, April 27). Rare earth oxide demand worldwide from 2017 to 2025. Statista. Retrieved June 20, 2023, from https://www.statista.com/statistics/1114638global-rare-earth-oxide-demand/
4. (2023, February 1). Global Rare Earth Metals Market Outlook Report 2022: A $15.47 Billion Market by 2030 - Increase in Demand for Semiconductors Bodes well for the Sector. Cision PR Newswire. Retrieved June 20, 2023, from https://www.prnewswire.com/news-releases/global-rare-earth-metals-market-outlook-report-2022-a-15-47billion-market-by-2030---increase-in-demand-for-semiconductors-bodes-well-for-the-sector-301736562.html
5. n.d.). Global EV Sales for 2022. The Electric Vehicle World Sales Database. Retrieved June 19, 2023, from https://www.ev-volumes.com/
6. (2019, January 29). Electric vehicles and rare earths. Edison. Retrieved June 19, 2023, from https://www.edisongroup.com/insight/electric-vehicles-and-rareearths/23277/
7. Kelly, L. (2023, February 20). Rare Earths Reserves: Top 8 Countries (Updated 2023). Investing News Network. Retrieved June 19, 2023, from https://investingnews.com/daily/resource-investing/critical-metals-investing/rare-earth-investingrare-earth-reserves-country/
8. (n.d.). The Future of Rare Earth Elements. Science History Institute - Museum and Library. Retrieved June 19, 2023, from https://sciencehistory.org/education/classroom-activities/role-playing-games/case-of-rare-earth-elements/history-future/#:~text=The%20Future%20of%20Rare%20Earth%20Elements&text=The%20growth%20of%20wind%20farms,rare%20earth%20magnets%20and%20batteries
9. 2019, January 29). Electric vehicles and rare earths. Edison. Retrieved June 19, 2023, from https://www.edisongroup.com/insight/electric-vehicles-and-rare-earths/23277/
10. Cho, R. (2023, April 5). The Energy Transition Will Need More Rare Earth Elements. Can We Secure Them Sustainably? Columbia Climate School - Climate, Earth, and Society. Retrieved June 20, 2023, from https://news.climate.columbia.edu/2023/04/05/the-energy-transition-will-need-more-rare-earth-elements-can-we-secure-them-sustainably/#:~:text=Demand%20is%20growing&text=Global%20demand%20for%20neodymium%20is,exceed%20supply%20by%20175%20percent.
Contact details:
Debra Clarke
0432 337 286