VANCOUVER, BC–(Marketwired – August 25, 2015) – Medallion Resources Ltd (TSX VENTURE: MDL) (OTC PINK: MLLOF) (“Medallion” or the “Company”), today announced that the recent bench-scale metallurgical testing of its rare-earth extraction process has produced a calcium phosphate by-product.
Phosphate typically makes up 24-29% of the mineral monazite, which is the feedstock for the Company’s rare-earth extraction process. The phosphate is liberated and made available during the extraction process and converted to calcium phosphate. This by-product, once in production, could represent an additional revenue stream for the Company.
Calcium phosphate is a commonly-used animal feed supplement providing an added source of calcium and phosphorus to strengthen bones and improve nervous system function, and feed digestibility. The global market for feed phosphates was estimated to be over $4.6 billion in 2013. Current prices for calcium phosphate in North America are about $400 per tonne.
“Our rare-earth extraction flow sheet makes available the phosphate component of the monazite feedstock as we produce a refinery-ready, rare-earth concentrate,” said Don Lay, President & CEO. “A side benefit is that we can also produce a high-quality calcium phosphate, which we expect will find a ready market near our proposed plant. Although this phosphate by-product is unlikely to be a significant revenue driver for our project, all sources contributing to our project’s economics are important.”
Earlier this month, the Company announced the results of its bench-scale metallurgical tests. These tests indicated that its caustic-process approach, fed with by-product monazite sand from a major heavy-mineral-sands producer, yielded a high-purity rare-earth concentrate. This concentrate is expected to be suitable for input into standard commercial rare-earth refineries or separation plants. Sample concentrate product will soon be provided to interested refineries for testing.
William H Bird, PhD, PGeo, who is the Company’s Chief Technical Advisor and Qualified Person, oversaw the metallurgical tests (see Company news release August 12, 2015) and approves of the technical information contained in this news release.
About Medallion Resources
Medallion Resources is focused on the opportunity for low-cost, near-term, rare-earth production by exploiting the mineral monazite. Monazite is a rare-earth phosphate that is available as a by-product from existing mining and mineral-sands sources, principally in the Indian Ocean basin. Rare earths are used in critical components for virtually all computing and mobile electronic products, as well as wind turbines, electric and hybrid vehicles, and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral processing and the safe management of waste materials. More about Medallion (TSX-V: MDL; OTC: MLLOF; Frankfurt: MRD) can be found at medallionresources.com.
Medallion management takes full responsibility for content and has prepared this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as statements relating to results and implications of extraction processing tests, potential marketability of a phosphate by-product and estimates and statements that describe Medallion’s future production and financing plans, objectives or goals, including words to the effect that Medallion or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks inherent in completing laboratory-scale processing tests and applying the results to full-scale production, risks of finding markets for industrial chemical concentrates and other risks outlined in the Company’s management discussion and analysis of financial results. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential business, acquisitions or development plans. Also, in order to proceed with Medallion’s plans, additional funding will be necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion’s plans.
President & CEO