Sunrise Energy Metals (ASX:SRL) is nearing completion of a Feasibility Study investigating the potential to produce a high-purity scandium oxide product in Australia.
The company this week doubled the contained scandium metal within its Syerston Scandium Project in central-west New South Wales.
Following a step out drilling campaign, the resource has increased to 19,007 tonnes of contained scandium at an average grade of 414 grams per tonne. Over 90% is also now in the higher confidence measured and indicated categories.
The contained metal in the higher-grade zones has grown 160% to 1,155 tonnes of contained scandium at an average grade of 665g/t. Over 99% of that resource is now in the measured and indicated categories.
Speaking exclusively to Mining.com.au, CEO Sam Riggall says the high-grade component of the resource will form the basis of a reserve estimate and mine plan, with work currently underway.
“Obviously the grade will be very, very attractive for the cost position of the project,” he says.
“The objective of building a primary scandium mine is to eventually drive costs low enough to encourage scandium adoption in a whole range of markets.”
This includes aluminium alloys, high performance and ultra-strength alloys, fuel cells and semiconductors.
“This resource allows this single project to produce enough scandium for the entire world at today’s production rates, but we expect demand to grow substantially over the next few years,” Riggall says.
“That’s why the big base is important.”
Scandium demand is growing at a fast pace because by adding as little as 0.5% to aluminium, manufacturers can create lightweight, high strength, corrosion resistant materials for the aerospace, defence, automotive and sporting goods industries.
Scandium is also integral to solid oxide fuel cells, a clean energy technology used for power generation, electronics to improve semiconductor performance and advanced communication technologies including 5G.
According to the New South Wales Government, total world scandium production was less than 40 tonnes in 2022. Demand, meanwhile, is tipped to surpass 110 tonnes a year by 2026.
Over 90% of global demand comes from the US, for both civilian and defence applications. The majority of the supply, however, is controlled by China, which halted exports of the commodity in April this year.
Sunrise Energy Co-Chairman Robert Friedland says the Syerston Scandium Project will bolster the supply of one of the most important rare earth metals at a time when supply disruptions are becoming the norm.
Australia currently has no scandium production or processing, but there are a number of projects being progressed in New South Wales.
Riggall says Syerston is the world’s largest and highest-grade primary scandium deposit.
Mineralisation extends from surface to 35m depth, which provides options for expandable, low-cost mining and rapid development, according to Sunrise Energy.
Riggall tells this news service the scope of the Syerston Project will cover both mining and processing.
“We will produce a high-purity scandium oxide as the final product,” he says.
“We will also take that material or part of that production to the United States and convert that into scandium metal as well. We’re working with partners in the US on that metalisation facility.”
The Syerston Project is covered by a granted mining licence and Sunrise Energy has secured water rights and project development consent, as well as submitted an application for renewable energy supply.
The Feasibility Study is slated for completion by the end of September and will support Sunrise Energy’s ongoing financing and offtake talks.
Write to Angela East at Mining.com.au
Images: Sunrise Energy Metals
