Rare-Earth Element Prices Rise as Medallion Resources Approaches Key Technical Milestone

About this update from Gamma Resources Ltd.

VANCOUVER, British Columbia, Dec. 10, 2020 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN) – “Medallion” or the “Company”), provides an industry update ahead of reporting the techno-economic assessment results for its proposed US rare-earth element (REE) extraction plant, expected in Q1 2021. Driven by high growth forecasts for electric vehicles (EVs), wind energy and electronics that require substantial volumes of high strength REE permanent magnets, the price of magnetic REEs have moved rapidly upwards in recent months. The price for neodymium (Nd) and praseodymium (Pr), together called “NdPr”, has risen almost 50% this year to $65/kg after averaging $41/kg for the last decade. As all major automakers have committed to rolling out new EV and hybrid models, Swiss Investment bank UBS recently forecast NdPr pricing to move to $100/kg by 2025. Medallion’s proposed plant, using its proprietary Medallion Monazite Process, is expected to produce approximately 3,500 tonnes per year of rare-earth products. This would include approximately 800 tonnes per year of the important magnet metals NdPr, the key input to the powerful and lightweight traction motors that propel EVs such as Tesla and Nio Limited. All modern vehicle designs depend on lightweight motors to provide increased efficiency, achieved in part by incorporation of REE magnets. EVs and hybrid vehicles that demand longer battery range are particularly weight sensitive, and consequently typically utilize 100-150% more REE magnets than internal combustion engine (ICE) vehicles. With most EVs requiring an additional 1 kg of NdPr vs. ICE vehicles, Medallion’s forecast NdPr output could supply magnets for 400,000 EVs per year. “With current and projected pricing of NdPr we expect the economics from our independent techno-economic assessment to look very positive,” said Mark Saxon, Medallion President & CEO. “We welcome approaches by prospective business partners as we progress towards final design and engineering.” Rare-earth elements are again attracting interest in the investment community as MP Materials Inc., which owns and operates Mountain Pass, went public November 18, 2020. With over 270 employees, MP Materials is the only operating REE mining and processing site in North America, and today ships a mineral concentrate to Shenghe Resources Holding in China ...

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