Brazilian Rare Earths Ltd (ASX: BRE) shares are catching the eye on Wednesday with a strong gain.
In morning trade, the ASX rare earths stock is up by a sizeable 10% to $4.29.
This compares favourably to the performance of the benchmark ASX 200 index today. At the time of writing, it is down 0.15%.
Why is this ASX rare earths stock jumping?
The catalyst for this strong gain has been the release of exceptional results from a sensor-based ore sorting test work program.
According to the release, the test work confirms its suitability for Monte Alto's beneficiation process flowsheet.
The independent test program successfully demonstrated the enrichment of run-of-mine rare earth mineralisation from Monte Alto to a product that is ready for direct hydrometallurgical rare earth extraction.
Importantly, it believes this can unlock significant economic benefits compared to traditional chemical flotation or bulk processing methods. It notes that by efficiently removing gangue materials, multi-sensor ore sorting has the potential to increase effective run-of-mine grade by a factor of 1.3x–1.7x, lower capital and operating costs, and reduce environmental and permitting risks.
Commenting on the news, the ASX rare earths stock's managing director and CEO, Bernardo da Veiga, said:
These exceptional ore sorting results from run-of-mine Monte Alto feedstock have exceeded all our expectations. They demonstrate that sensor-based concentration can significantly enhance project economics with +95% yields at lower capital and operating costs, whilst simultaneously reducing environmental footprint through lower energy, minimal water and no reagents.
Our metallurgical programs are designed to maximise the value of Monte Alto's ultra-high grade rare earth, uranium, scandium, niobium, and tantalum mineralisation. These ore sorting results build on our previous metallurgical programs with the Australian Nuclear Science and Technology Organisation (ANSTO) and provide a pathway for world-leading mineral-to-product yields.
He then adds:
Rare earth projects are typically characterised by low head grades and complex, high-cost processing flowsheets. Monte Alto's ultra-high grades can deliver a beneficiated product at grades that are suitable for direct hydrometallurgical processing. BRE will now progress flowsheet design, targeting a multi-sensor system capable of processing 100% of Monte Alto's run-of-mine material at +95% yields.
Following today's move higher, the Brazilian Rare Earths share price has now risen by 95% since this time last year and more than doubled in value since mid-August.
