REG - Neometals Ltd - Precious Metals Due Diligence Update

NeometalsAnnouncement

04/06/2024 07:00

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RNS Number : 0096R  Neometals Ltd  04 June 2024

This announcement contains inside information

 

04 June 2024

Neometals Ltd

("Neometals" or "the Company")

Precious Metals Due Diligence Update

Highlights:

1.     Initial six-week pilot-scale metallurgical test work program to
selectively recover precious metals from   purchased third-party waste
streams yielded encouraging yet highly variable results;

2.     Approximately 4.28 tonnes of two purchased feedstocks processed in
10 campaigns totalling 24 batches of 120-245kg to verify and validate the
process across range of scenarios;

3.     Commenced second phase of test work on preferred feedstock, reagent
regime and recovery technique to confirm repeatability of results from initial
test work, completion in June and results expected July.

Sustainable process technology developer, Neometals Ltd (ASX: NMT & AIM:
NMT) ("Neometals" or "the Company"), is pleased to give an update on the
initial metallurgical test work program ("Phase 1 Trial") completed in the
Precious Metals Recovery LLC ("PMR") pilot plant located in Colorado, USA.

Neometals has entered an option, expiring 31 August 2024 ("Option" and "Option
Agreement"), to acquire an 80% equity interest of US business PMR (see
announcement here (https://wcsecure.weblink.com.au/pdf/NMT/02810683.pdf) ).
 PMR owns and operates a pilot plant (Figures 1 & 2) demonstrating its
proprietary hydrometallurgical process ("PMR Technology") to selectively
recover precious metals from certain industrial waste streams.

During March and April 2024, Neometals technical team observed the testing of
approximately 4.28 tonnes of feedstocks purchased from two third-party waste
management companies. The program comprised 24 individual batches of either
120 or 245 kg of feed material. Two batches were discarded due to operational
issues and 22 proceeded through the entire process. In total 11 batches
processed to recover palladium, 9 to recover gold and 2 to recover both gold
and palladium sequentially.

There was significant variability of recovered metal from different feedstocks
that were processed under various chemical regimes and metal recovery
techniques.  Some campaigns demonstrated positive metal recovery for gold and
palladium while some failed to recover either metal. This initial test work
programme allowed the identification of the best reagent regime and feedstock
that will be tested further in the second, confirmatory trials.

Eight batches of 245kg of PMR's preferred feedstock and preferred reagent
regimes indicated an average of 3.75 ounces of palladium recovered on per
tonne of feedstock basis. Three batches tested alternate feedstock and/or
lower quality reagent regimes failed to recover any palladium. Four batches of
120kg using PMR's preferred feedstock/reagent regimes indicated average of 3.8
ounces of gold recovered per tonne of feedstock. Five batches tested an
alternate feedstock and/or varied reagent regime and failed to recover gold.
Two tests to recovering both palladium and gold in same batch failed to
recover either metal (included in reporting above).

The preferred feedstock, reagent regime and recovery technique are currently
being tested for repeatability ("Phase 2 Trial") for discrete gold and
palladium recovery. The recovered metals from each individual batch are being
smelted and split before dispatch to separate precious metals refineries in
the US. The Phase 2 Trial is planned for completion in June with results
expected in July 2024.

Next Steps

The results of the Phase 2 Trial will be used as the basis for preparing an
operating and financial model to consider the investment case along with
further legal and financial due diligence.

For clarity, Neometals has made no decision to proceed with exercising the
Option and its decision to exercise the Option or not remains subject to the
outcome of ongoing due diligence on PMR and its business (including the PMR
Technology).

Neometals will continue to update the market regarding progress on the key
milestones.

Figure 1 - PMR Pilot Plant Leaching/Filtration Circuits

 

Figure 2 - PMR Pilot Plant Reagent Mixing/Recovery Circuits

 

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

 

-ENDS-

For more information, please contact:

 

 Neometals Ltd
 Chris Reed, Managing Director & Chief Executive Officer       +61 8 9322 1182
 Jeremy McManus, General Manager - IP & IR                     +61 8 9322 1182

 Cavendish Capital Markets Ltd - NOMAD & Broker
 Neil McDonald                                                +44 (0)131 220 9771
 Peter Lynch                                                  +44 (0)131 220 9772
 Adam Rae                                                     +44 (0)131 220 9778

 

About Neometals

Neometals facilitates sustainable critical material supply chains and reduces
the environmental burden of traditional mining in the global transition to a
circular economy.

The Company is commercialising a portfolio of sustainable processing solutions
that recycle and recover critical materials from high-value waste streams.

·    Neometals' core focus is its patented, Lithium-ion Battery ("LiB")
Recycling technology (50% NMT), being commercialised in a 50:50 incorporated
JV (Primobius GmbH) with 150-year-old German plant builder, SMS group GmbH.
Primobius is supplying Mercedes-Benz a 2,500tpa recycling plant and operates
its own LiB Disposal Service in Germany. Primobius' first 21,000tpa commercial
plant will be offered to Stelco under an existing technology licence for North
America.

Neometals is developing two advanced battery materials technologies for
commercialisation under low-risk, low-capex technology licensing business
models:

·      Lithium Chemicals (70% NMT) - Patented ELi™ electrolysis
process, co-owned 30% by Mineral Resources Ltd, to produce battery quality
lithium hydroxide from brine and/or hard-rock feedstocks at lowest quartile
operating costs. Pilot scale test work and Engineering Cost Study update
planned for completion in DecQ 2024; and

·      Vanadium Recovery (100% NMT) - Patent pending hydrometallurgical
process to produce high-purity vanadium pentoxide from steelmaking by-product
("Slag") at lowest-quartile operating cost and carbon footprint.

 

Additionally, Neometals is conducting due diligence on acquiring a proprietary
process and pilot plant to produce precious metals from waste.

For further information visit www.neometals.com.au
(http://www.neometals.com.au/)

Cautionary Statement

In relation to the disclosure of the recovered metals, the Company cautions
that a combination of internal hand-held XRF measurement and external
laboratory analysis by refinery out-turns have been used to calculate
recovered metal. Furthermore, these results are from feedstocks purchased from
third-parties unrelated to the vendor and Neometals makes no assertion that
these results are reliable indicators of future performance.

 

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