Episode 187 of Coffee with Samso is with Guy Le Page, Non-Executive Director of Mount Ridley Mines Limited (ASX: MRD). Mount Ridley is now at the business end of the Rare Earth journey.   Mount Ridley Mines is now focusing on the flow chart of the REE business. This is the money end, can you make the processing part cash flow positive?   When I had my first Coffee with Samso with Guy Le Page, in July 2022 (Mount Ridley Mines Limited (ASX:MRD) - A Rare Earth Story.), it became evident that the company had a strong focus on optimising its flow chart. The company was confident in its ability to achieve the desired tonnage and grade, but its primary emphasis was on the final stage.   In my view, one of the major benefits for companies like Mount Ridley is their project's location in the Esperance region. Numerous discussions have highlighted the region as the ideal site for the government to establish a Rare Earth Hub.   Check out the conversation in this Coffee with Samso and, as I always encourage, DYOR.       Chapters   00:00 Start 00:20 Introduction 01:10 Updates on the Mia Project 02:45 Beneficiation Results 03:55 Leach Test Results 04:59 Is Mia the main focus of Mount Ridley? 06:01 Mia prospect air-core drilling 06:37 Discussion about the soft REE market 09:05 Q&A from the public 09:19 Is MRD still going to list on the Frankfurt Exchange? 09:46 What is MRD’s strategic roadmap beyond 2023? 10:59 How is MRD taking a position for success amongst Esperance peers? 11:59 Is using HCL costly? And what about government grants? 13:03 Has MRD determined the controls in the clay-hosted REE project? 15:24 Prediction of the path of the REE market as we move forward 17:01 What makes MRD stand out? 18:20 Discussion about the REE market 20:17 Conclusion     Samso's Conclusion   When investing in the Clay Rare Earth sector, it is crucial to consider the economic viability of the processing flow sheet, and, while the industry has yet to determine its profitability, this does not mean it won't become a viable option. However, it is important to acknowledge that the industry is still in its early stages, and there will be a steep learning curve filled with uncertainty.   The industry has successfully identified the process of leaching out the Rare Earth Elements (REE), but the economic outcome in terms of profitability remains uncertain. The REE sector, including both hard rock and "Clay/ionic/alluvial" types, has gained attention in investment circles due to recent geopolitical developments.   China's dominance in this sector is widely recognised and understood. The previous discussion on REE in the investment community was short-lived in 2010, as the market experienced rapid fluctuations. However, the current rise of the REE sector has shown more resilience, having been present for a couple of years, largely due to the new "cold war" with China.   Balancing the REE sector will require time, and investors in this sector must cultivate patience, akin to the patience required for fishing. It is frustrating to continually emphasize that mining projects are measured in terms of years to decades, while investors, particularly new ones, expect quick results within weeks or months.   Unfortunately, such quick results are unlikely to occur. Regarding Mount Ridley, they have a solid strategy, and recent results indicate a viable business. However, the investment community needs to learn to be patient and learn to "PARK" their money.

In Episode 186 of Coffee with Samso, Dr Mike Jones, the Managing Director of Impact Minerals Limited (ASX: IPT), educates us on the ins and outs of the HPA business.   The HPA (High Purity Alumina) story for Impact Minerals is now all about the economic process of making HPA. There are no longer any questions on the tonnage or the grade. In simple terms, the company is at the business end of the mineral resource sector.   Impact Minerals to acquire advanced HPS project in Western Australia         One of the key aspects of understanding Impact Minerals is to have a clear view of the company's business. Impact is in the business of HPA and what that means is that it needs to deliver High Purity Alumina in the 3N or 4N level (Figure 1).     Figure 1: The HPA business detailing the different products and the potential income. (Source: Impact Minerals Limited).   When considering companies like Impact Minerals, the initial association is often with mineral exploration. However, it is important to view Impact from a fresh perspective. In this episode, Dr. Mike Jones discusses the company's current focus on the Pre-Feasibility Study (PFS) phase, which aims to determine the profitability of the Lake Hope HPA project. This shift in focus highlights Impact's commitment to reaching a stage of financial success, distinguishing it from the negative reputation often associated with mineral exploration companies.     Samso's Conclusion   Impact Minerals is a company that often goes unnoticed despite its promising projects. Currently, they are actively promoting the Lake Hope project, which has been discussed extensively by Mike during the past two Coffee with Samso sessions. It is evident that the Lake Hope HPA project holds significant value for the company.   Impact Minerals Limited (ASX: IPT) - A Low Cost HPA story in Western Australia.   It is worth mentioning that Impact Minerals' Broken Hill project was among the six projects worldwide selected for the prestigious BHP Xplor program. On 17th of January 2023, the company issued a release providing further details about their participation in the BHP Xplor program. BHP Xplor, an accelerator program introduced by BHP in August 2022, is designed to help provide participants with the opportunity to accelerate their growth and the potential to establish a long-term partnership with BHP and its global network of partners. Impact received up to US$500,000 in cash payments from BHP over the next six months and gained access to a network of internal and external experts to help guide development in the technical, business, and operational aspects of the company.   This means that the management of Impact demonstrated credibility by successfully participating in and gaining acceptance for the Broken Hill project. This is a significant achievement, as only six recipients were chosen for this program, indicating a high level of quality.   While the market trader may perceive Impact Minerals' market capitalisation of 34.37M as high, there is an underlying value that will yield positive results in the future. The Arkun project, which we discussed in a recent episode of Coffee with Samso, is located in a jurisdiction occupied by Tier-1 resource companies like Anglo-American. This provides strong evidence of its prospectivity (Figure 2).       Figure 2: The Arkun project and its neighbours. (Source: Impact Minerals Limited)     The Lake Hope project is currently in the "Feasibility" stage, and the initial excitement surrounding it has diminished in the market. However, this does not undermine the value that Impact Minerals is creating for its shareholders.   There are two aspects of Impact Minerals that I appreciate. Firstly, the Lake Hope project is undeniably the company's flagship at the moment. Secondly, there is potential for significant growth from the Arkun and Broken Hill projects.   Tune in to Mike's thoughts here.   Chapters:   00:00 Start 00:20 Introduction 01:20 Updates from IPT 02:16 Economical parameters that make an HPA project viable 05:56 All about High Purity Alumina 07:54 The Cost Curve Analysis 11:23 Discussion about entry into the HPA market 12:43 The HPA space after the commodity market softening 14:07 The market for HPA 16:04 The Arkun Project 20:51 The Forward Plan 24:52 Is Lake Hope is still the Perfect Orebody? 25:33 How should investors view Impact? 26:55 Why should investors believe that Impact will deliver the end story? 29:00 With the current interest rate trend, is it a good time for companies like Impact Minerals? 30:55 Why should investors invest in Impact Minerals? 31:48 Conclusion

Coffee with Samso Episode 183 is all the Brothers Rare Earth Discovery.   The discovery of a high grade clay Rare Earth project by Venture Minerals Limited (ASX:VMS) in the Golden Grove district needs to be noticed. The depth of intercept and the high grade is up amongst the top tier projects in Western Australia. Venture's Maiden Drilling program confirms High Grade clay hosted REE Discovery at the Brothers Project           The REE Journey begins for Venture Minerals Limited ?   In April 2023, the Venture Minerals announced the introduction of the Iron Duke REE project into the Brothers project on a Rooster Talk - Venture Minerals Limited (ASX: VMS) - Building a Rare Earth Portfolio in Western Australia. The REE story for the company was a slow build up over the last 18 months. Venture set to commence drilling at the Iron Duke High Grade REE Project           Chapters:   00:00 Start 00:20 Introduction 00:57 High Grade clay hosted REE discovery at the Brothers Project 02:00 Reason for high grade 07:01 Direction of the Big Brothers Project 09:46 Is the Big Brothers Project the focus for VMS? 11:02 Discussion on metallurgy 11:57 How should investors look at VMS? 15:38 News flow 18:17 Why VMS? 21:13 Conclusion     Rare Earth Market Status   One of the first indicator of the fortunes of the Rare Earth exploration sector is the rise or fall of the REE market pricing. As we all concurrently, the market is looking at a bearish price sentiment which has created anxiety for many investors. One cannot argue that the bear is out of hibernation.   What many the supporters of the bear is forgetting is that this market has been created out of a geopolitical situation. The current changing focus of world politics, in my opinion has made metals such as REE attractive. The future needs of the REE components are going to add to the demand in the market.   AS all investors know, the long term is where money is made. This is a well know fact and again, investors forget that the mining game is all about the long term. The mining sector is measure in decades and not months nor years. There are mines that have happened in years, such as Nova Bollinger (Ni) and DeGrussa (Copper), but they are few and very far in between.   What makes Venture Minerals a good bet?   What Venture Minerals does best is to create diversified projects which continue to create value when it seems insurmountable to find value. I have said this many times about when I first had a Coffee with Samso with Andrew Radonjic and finding the value in the numerous projects.   Why and how can do continue to do this? This is where experienced management comes to the front of the game. The value in the Brothers project is prime example. How did they come up with a project that looked liked an outlier but with drilling, it is now possibly standing out to be a contender in the Rare Earth race.     The Decarbonisation Problem.   The world is intent on achieving a state where there is clean energy use but the journey is going to be long and hard. The whole concept of achieving that level is not being helped with the persistent sectors of the population believing that restricting mining is going to be the solution.   There is no going back to the old ways of "Non-Decarbonisation" thinking. This is something that is established. I had a coffee with someone in South Australia and he was proudly telling me about the way the state has gone to renewable energy.   The process of creating a world of less "dirty energy" is now no longer news. This is an expected path.   Samso's Conclusion   Andrew Radonjic has pulled another rabbit out of his hat. The Brothers project is one that I certainly did think had a great chance for some glory. In our last Coffee with Samso, we discussed that the historical drilling would make this project very interesting. Venture to JV into Neighbouring REE project hosting drill intersections up to 49 metres @ 1,313 ppm TREO   The two drill holes that was announced was into bedrock which would have suggested that there could be more to come. The recent release has made that thought come true.   Does this make the Brothers project a stand out? I dont think one can say that now as there is still the issue of the metallurgical question. What I have learnt is that they will come back and show that it will leach. How much acid.,...etc. will be the main topic of conversation.   Is this something that will carry Venture Minerals back to its glory days when it was a darling for retail investors, I think not immediately. I like the numbers that have come up but I think the market is saturated with a lot of REE stories.   The markets needs to understand what kind of project is going to make the grade and what will not. The initial Ionic vs. Non-Ionic debate is now a thing of the past as we have discussed many times, there is more to the discussion than the Acid content.   What I know now is that there are several projects that have something different that I believe make them unique. For Venture Minerals, it is their location (proximity to the new Lynas story), the grade and the depth of mineralisation. They are not in the typical REE areas and there are no potential land issues.   All these factors, in my opinion, makes Venture different.