VANCOUVER, Nov. 5, 2015 /CNW/ - (TSXV: SMY)
Search Minerals Inc. ("Search" or the
"Company") is pleased to announce it will receive research
and development ("R&D") funding
totaling C$1,250,000 from the Research & Development
Corporation Newfoundland and Labrador ("RDC") and from the Atlantic
Canada Opportunities Agency ("ACOA") to assist in
the construction and operation of a pilot plant for the
testing of Search's metallurgical process (the
"Project"). Search will receive C$750,000 towards
the project from RDC and will receive a C$500,000 conditionally repayable contribution
from ACOA. The Company will contribute an
additional C$650,000 in working capital. The total
Project cost is approximately C$
1,900,000.
Greg Andrews, President/CEO
comments, "We are very pleased to have the support of both RDC and
ACOA to provide C$ 1.25M R&D
funding for this C$ 1.9M
project. Our successful collaboration with RDC and ACOA in
2014, led to the metallurgy breakthrough, whereby grinding,
flotation, gravity and magnetic separation were eliminated from the
simplified process flow sheet. This larger scale
integrated pilot plant operation will provide Search with the
critical engineering data to advance the process through to
commercialization. The test will also provide Search with
sufficient mixed REO oxide to provide to potential partners to test
the downstream separation process into individual rare earth
elements. Our goal is to be able to provide a low-cost,
consistent mixed REO oxide product, which would be used to create a
stable and consistent final rare earth metal product. Search
is able to finance its' contribution with proceeds from the recent
sale of the Strange Lake claims, and the Starved Acid Leach
Technology with minimum dilution to our shareholders. "
The design capacity of the pilot plant is set at 10 kg/h.
For a 14 day pilot operation, a 7 tonne sample will be provided
from the 40 tonne bulk sample material from the High Grade Core of
the Foxtrot deposit in November 2014.
(See Search News Release – November 19,
2014 - Search Minerals extracts bulk sample to test
new Foxtrot metallurgical process)The estimated Project
commencement date is November 2015
with a completion date of July
2016.
On the successful conclusion of the Pilot Plant study, Search
will have reached the following milestones:
- The validation that the Search metallurgical flowsheet is able
to produce a mixed rare earth oxide on a large scale, which is
suitable for further separation by a refinery.
- The Project will provide further engineering design data to
support the development of a Bankable Feasibility Study to advance
the Foxtrot resource to support a production decision.
- The ability to provide a rare earth separation facility with a
consistent mixed rare earth oxide for further separation into
individual rare earth metals.
Search will engage the services of SGS Canada Inc.
("SGS") for the construction and operation of the pilot
plant
About Search
Search is a TSX Venture Exchange listed company focused on
creating value through finding and developing "critical rare earth
element ("CREE")" mineral assets in Labrador. CREEs (Nd, Eu, Tb, Dy, Y) have
growing demand, constrained or restricted supply and are commonly
used in innovative technologies.
Search is the discoverer of the Port Hope Simpson CREE District,
a highly prospective CREE belt located in southeast Labrador, where the Company controls a belt 70
km long and up to 8 km wide. Search owns 100% of the advanced CREE
resource called the Foxtrot Project ("Foxtrot"), and a
recently announced Foxtrot-like prospect called "Deepwater Fox". In
addition, the Company has identified more than 20 other
Foxtrot-like prospects in the District. The primary focus of Search
is to continue to advance the Foxtrot resource, while evaluating
other Foxtrot-like prospects. Several of the Foxtrot-like prospects
require exploration drilling programs and may provide additional
resources to a central processing facility that would be situated
within the District.
In addition, Search holds a number of other CREE mineral
prospects in Labrador in its
portfolio, including claims in the Red Wine Complex, and in the
Henley Harbour area.
Search is led by a management team and board of directors with
proven track records in the mining industry. The Company also has
experienced geological and metallurgical teams led by Dr.
Randy Miller and Dr. David Dreisinger, respectively.
All material information on the Company may be found on its
website at www.searchminerals.ca and on SEDAR at
www.sedar.com.
About the Atlantic Canada Opportunities Agency:
ACOA works to create opportunities for economic growth
in Atlantic Canada by helping businesses become more
competitive, innovative and productive, by working with diverse
communities to develop and diversify local economies, and by
championing the strengths of Atlantic Canada. Together, with
Atlantic Canadians, ACOA is building a stronger economy.
About the Research & Development
Corporation, Newfoundland & Labrador:
RDC is a provincial Crown corporation responsible for improving
Newfoundland and Labrador's research and development
performance. RDC works with research and development stakeholders
including business, academia and government agencies and
departments to make strategic investments in highly qualified
people, R&D infrastructure and innovative research. Additional
information about RDC can be found at: www.rdc.org
About SGS
SGS is the world's leading inspection, verification, testing and
certification company. SGS is recognized as the global benchmark
for quality and integrity. With more than 80,000 employees, SGS
operates a network of over 1,650 offices and laboratories around
the world.
Around the world, SGS offers a wide range of integrated services
for the hard rock, energy minerals and fertilizer sectors including
sustainable geochemical analysis, resource calculation, mineralogy,
metallurgical testing and consulting, engineering services,
advanced systems, water treatment and trade services. For
further information regarding these and other SGS services, please
visit www.sgs.com/mining.
Neither the 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.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation that are not
historical facts. These forward looking statements relate to future
events or the Company's future performance, business prospects or
opportunities, including but not limited to the receipt by Search
of the RDC and ACOA funding, the completion of the Project and the
success of the Project. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties and other factors
which may cause actual results and future events to differ
materially from those expressed or implied by such forward-looking
statements. Such factors include, but are not limited to: general
business, economic and social uncertainties; litigation,
legislative, environmental and other judicial, regulatory,
political and competitive developments; and those additional risks
set out in Search's public documents filed on SEDAR at
www.sedar.com. Although Search believes that the assumptions and
factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by law,
Search disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Search Minerals Inc.