Rare earth project in Ungava moves closer

The Strange Lake rare earths mining project in the remote Ungava region of northeastern Quebec has passed a key milestone.

Owner-operator Quest Rare Minerals Inc. said Wednesday a preliminary feasibility study has confirmed that the Strange Lake mine and hydrometallurgical processing plant located between Quebec City and Montreal could become a major supplier of top-grade heavy rare earth minerals to the electronics, battery, magnet, auto parts and wind turbine manufacturing industries.

The project will require investment of well over $1 billion and the final go-ahead will depend on the results of a full feasibility study, successful permitting and financing and global market prices. China is the biggest producer and consumer.

Strange Lake ore has already been tested in a minipilot plant producing 100 kilograms daily and Quest now plans a full-sized pilot plant in Lakefield, Ont., due to start up next year.

The ore would be trucked from the mine to a Labrador port and then shipped via the St. Lawrence to the processing plant between Montreal and Quebec City. Most of the ore is classified as “heavy” rare earths, rather than “light,” carrying premium prices.

“This project has the potential to become a significant long-term supplier of high-value rare earth products,” said Quest’s CEO David Cashin, a well-known geologist and mine builder. “Since putting several properties together in 2008, we’ve brought Strange Lake to the stage of a substantial mineral development project.”

Quest has begun forward selling negotiations with potential buyers of some products and the favourable pre-feasibility study will accelerate this process, he added. Quest will also be talking to potential partners ready to back the project. Mine construction could start in 2016 and first shipments of processed products is set for 2018. Annual production would be 41,500 tonnes.