High grade ionic absorption clay magnetic rare earths mineralization found in Verde’s historical drill holes

Verde will explore ways to generate shareholder value from this opportunity while remaining committed to its focus on fertilizers

SINGAPORE, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce that 4,708 hectares of its mineral concessions are prospective for Magnetic Rare Earths (“MRE”) mineralization. MREs, which in Verde’s find include Praseodymium (“Pr”), Neodymium (“Nd”), Dysprosium (“Dy”), and Therbium (“Tb”), are in high demand due to their critical role in the energy transition. These elements are essential components in the production of high-performance magnets used in electric vehicles, wind turbines, and other green technologies, positioning Verde as a strategic player in supporting the global shift towards renewable energy solutions.

“We are thrilled by the potential we have uncovered in the Magnetic Rare Earth elements and are committed to conducting thorough work to fully understand their scope and application. Verde remains focused on its fertilizer business and will investigate alternatives to generate shareholder value from those concessions,” confirmed Cristiano Veloso, Verde’s Founder and CEO.

Verde has initiated the re-assaying of select historical drill holes within a geological formation previously explored for phosphate. This strategic decision aligns with evolving market dynamics in the rare earth elements (“REE”) sector, driving Verde to reevaluate historical exploration data with a new focus on potential REE mineralization. As global demand for REEs intensifies, particularly due to their essential role in renewable energy technologies, Verde aims to further investigate the presence of high-value magnetic rare earths within its concessions.

The Company reanalyzed 15 drill holes in the mineralized zone of the Nau de Guerra Target and results included1:

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1 Oxide Conversion Factors: the conversion factors for rare earth oxides represent the multiplier used to convert the elements into their oxide forms. The conversion factors are as follows: Cerium Oxide (CeO₂) = 1.2284; Dysprosium Oxide (Dy₂O₃) = 1.1477; Erbium Oxide (Er₂O₃) = 1.1435; Europium Oxide (Eu₂O₃) = 1.1579; Gadolinium Oxide (Gd₂O₃) = 1.1526; Holmium Oxide (Ho₂O₃) = 1.1455; Lanthanum Oxide (La₂O₃) = 1.1728; Lutetium Oxide (Lu₂O₃) = 1.1372; Neodymium Oxide (Nd₂O₃) = 1.1664; Praseodymium Oxide (Pr₆O₁₁) = 1.2082; Samarium Oxide (Sm₂O₃) = 1.1596; Terbium Oxide (Tb₄O₇) = 1.1762; Thulium Oxide (Tm₂O₃) = 1.1421; Yttrium Oxide (Y₂O₃) = 1.2699; Ytterbium Oxide (Yb₂O₃) = 1.1387.

2 Total Rare Earth Oxides (TREO) refers to the sum of the oxides of rare earth elements, which include: Lanthanum Oxide (La₂O₃), Cerium Oxide (CeO₂), Praseodymium Oxide (Pr₆O₁₁), Neodymium Oxide (Nd₂O₃), Samarium Oxide (Sm₂O₃), Europium Oxide (Eu₂O₃), Gadolinium Oxide (Gd₂O₃), Terbium Oxide (Tb₄O₇), Dysprosium Oxide (Dy₂O₃), Holmium Oxide (Ho₂O₃), Erbium Oxide (Er₂O₃), Thulium Oxide (Tm₂O₃), Ytterbium Oxide (Yb₂O₃), Lutetium Oxide (Lu₂O₃), and Yttrium Oxide (Y₂O₃).

3 Magnetic Rare Earth Oxides (MREO) refers to the sum of the oxides of rare earth elements with magnetic properties, which include: Praseodymium Oxide (Pr₆O₁₁), Neodymium Oxide (Nd₂O₃), Terbium Oxide (Tb₄O₇), and Dysprosium Oxide (Dy₂O₃).

Those results were noteworthy for the following reasons:

1. high grade TREO
2. very high grade MRE
3. mineralization proximity to surface with minimal overburden
4. excellent location close to Verde’s existing operations

Upon its preliminary success, the Company decided to assess if ionic absorption clay mineralization was present. Ionic absorption clay rare earths deposits are the gold standard of REEs mining. These deposits have the industry’s lowest OPEX and CAPEX. Verde sent samples to SGS lab, and the results confirmed the presence of ionic absorption clay mineralization, yet non-optimized recovery as detailed below:

Non-optimized results for Magnetic REO

Ionic absorption clay mineralization is confirmed when metallurgical recovery is achieved through ammonium sulfate leaching tests, involving low-temperature, atmospheric-pressure leaching followed by the selective precipitation of REE, ensuring efficient extraction with minimal impurities. In Verde’s case, samples were leached using a 0.5 M ammonium sulfate solution at pH 4 for 30 minutes under ambient conditions, demonstrating the effectiveness of this method.

Once ionic absorption clay mineralization is confirmed it is also crucial to explore leaching contaminants which would potentially increase costs. Again, results were very positive with extremely low concentration of any contaminants as below: