I’ve just gotten back from the Quest Rare Minerals (TSX: QRM | NYSE MKT: QRM) mini pilot plant site last week. I started considering what had stood out for me on this tour and the answer was simple: formidable metal recoveries. In addition to an impressive infrastructure that I had only seen before at ANSTO, Quest offered a tour of a mini pilot plant that utilizes a tried and tested extraction process.
There seems to be some kind of an anomaly in the mineralogy that works with the metallurgical engineers and increases the mineral recovery, reducing the cost of extraction according to a presentation made by Quest’s Senior Process Metallurgist Yemi Oyediran and Process Metallurgist Mike Robart. They stressed variables such as the recycling of acid and other cost effective attributes; my conclusion was that there was a significant commitment by the team towards maximizing the cost recovery rate.
I asked Peter Cashin, President and CEO of Quest Rare Minerals to comment on Quest’s recovery rate and to explain how they could achieve 80%+ results. Peter explained that “Quest’s Team of metallurgists and metallurgical engineers have succeeded in developing a cost-effective process design, which efficiently recovers the value oxides from the Strange Lake Rare Earth-Zirconium-Niobium deposit. The unusually high metal recoveries (80+%), when compared to our peers, were obtained at low process temperatures as indicated by our extensive deposit research work at McGill University. That work concluded that the heavy rare earth minerals present in the B-Zone deposit formed at geologically low temperatures associated with a strong alteration event which converted what appears to have initially been a light rare earth deposit into one which became highly enriched (45% to 50%) in the heavy and critical rare earths (Nb, Eu, Dy, Tb, Y). In metallurgy, formation temperatures of the economic minerals usually dictates the temperature required to bring them back into solution so that they can be recovered.”
For those of you unfamiliar with Quest Rare Minerals, Quest’s Strange Lake Development Project is situated in one of the world’s best mining locations in the world – Quebec. Allowing the company to access areas with what I 
have been told is one of the largest-known heavy rare earth elements deposits in the world, this scenario helps place the Strange Lake project in a favorable position to meet long term industry needs. Given its simple, low-cost open-pit operations and Quest’s superior performance levels in critical/rare earth extraction productivity relative to its peer group, the Strange Lake Development Project is positioned to perform strongly.
This potential is being confirmed by laboratory metallurgy recoveries, which continue to beat analyst expectations and peer reports. The recoveries are encouraging and the efficiency of this output sets the stage for uninterrupted operations as Quest’s pilot mill programs start to take shape. This general performance bodes well for the long term outlook and continued progress in the Misery Lake Rare Earth Project too, which has expanded its scope of exploration to include programs for prospecting, geological mapping, and regional till-geochemical sampling. Quest’s ultimate goal is to meet the market’s increased demand for high-tech applications, and the combination of these two projects puts the company in a position to satisfy those increased needs.
The front-end metallurgical development that has been completed at Quest’s pilot plant is based heavily on the results of feed comminution tests and mineralogy studies. This work requires repeated bond work indices tests and detailed QEMSCAN analyses in 
order to determine the mineralogical composition of extracted ore samples. These samples are divided by chronological region and dual concentration methods are used to reduce the amount of material passing to the thermal sulphation roasting stage.
As a means for aiding Quest’s current extractions projects, gravity and magnetic separation tests are conducted along with the plant’s floatation test programs. The primary objectives of these projects aim for confirmation of bench scale results under continuous conditions. This helps when assessing the validity of each process and the early results of these tests appear to suggest high rates of efficiency in the bench scale work. The conclusions that can be drawn from these early tests support the outlook for the company’s current projects and help strengthen Quest’s ability to meet the increases in demand expected for such products as permanent magnets, phosphors and pigments.
When looking to build on these successes, the newest bench-scale programs aim to improve Quest’s Niobium, Uranium-Thorium, and Yttrium recovery circuits. As Quest launches its larger pilot programs, the company will be able to define individual Yttrium separation processes. This will allow for refinements in Quest’s extraction methods and enable the company to build on its already impressive extraction rates.
Well, no one has commented on this article yet while other Rare Element related posts are hopping with comments. The bottom must be in for Quest. Seriously, I am a shareholder of Quest. With all of the money printing going on, you would think that they would have no problems getting funding to build out their mine/plant.
Other than Tasman & Lynas, I believe Quest is the best heavy rare earth miner out there. Other than the locale, it has everything going for it. This in my opinion is a definite long term hold and good buy right now at a buck.
qrm is a great buy right now. qrm needs better publicity because investors dont realize what a great investment this is. check the facts and specs people. 80 mile pipeline is expensive though but still probably the best field of heavies that will be in demand.
Jerry – I have to say that I am a full fledged supporter of Quest. This is undoubtedly one of the best values on the market right now, and there are many…as a VC I met with on Tuesday told me — it’s the one’s with money in the banks that I prioritize, he said. Quest has money in the bank, outstanding leadership and is certainly in the top 5 players leading the rare earth race to production…and, they are in Quebec. I tell you, Quebec is unquestionably one of the absolutely most mining friendly places in the world. Thanks for reading ProEdgeWire.
Did the VC say how much money in the bank, and relative to funding needs going forward?
Quest will have to raise considerable funds in order to build out its operation. I think it’s safe to say that the chances of Quest getting the needed funding are less than 100%. As for how much less than 100% and what it’ll have to “give up” in order to get the funding?
The U.S. Federal Reserve purchases (prints money) $45 billion in MBS and another $40 billion in U.S. Treasury bills/bonds PER MONTH. Quest’s build out was estimated at $1 billion.
I was just listening to a podcast that said that 85 million wasn’t enough. We need a huge print or foreign sources injecting money into the U.S.
Just to clarify, my point was that the U.S. Federal Reserves prints $85 billion per month while Quest needs around $1 billion (based estimates that I have read) to build out their mine/plant. This $1 billion is peanuts compared to the $85 billion (per month).
Their mines seem pretty far north. Does anyone know how they can get the goods out and how long can they operate before winter sets in? I can’t seem to find any of that info.
My understanding is that they plan to ship the stuff from the Labrador coast.
Thanks Gilbert.
Market does not seem to share the enthusiasm with QRM dropping 23% in the 7 trading days since the article, and making a new 3.5 year low in the process.
Belief in the “Rare” Earth story appears paper thin ATM.