SCY.TO - Multiple fronts.

Updated: Nov 5


Scandium International Mining Corp. (SCY.TO) is focused on developing its Nyngan Scandium Project, located in NSW, Australia, into the world's first scandium-only producing mine. The Company filed a NI 43-101 technical report in May 2016, titled "Feasibility Study - Nyngan Scandium Project". The project has received all key approvals, including a development consent and a mining lease, necessary to proceed with project construction.


SCY.TO is also currently soliciting copper industry interest in using ion-exchange technology to extract unrecovered critical metals from existing mine process streams. This program fast-track the concept to make battery-grade nickel and cobalt products, scandium master-alloy product, and other critical metals, from North American sources. SCY.TO is also pursuing high-purity alumina opportunities,in conjunction with CMR and/or as a stand-alone project.


Coverage was initiated on May 2017, with notes issued on September 2017, February 2018, August 2018, February 2018. September 2019. June 2020. and February 2021.

New Releases


May 20 - Receives Two Patent Grants Relating to Scandium Recovery and Scandium Master Alloy Manufacturing:


Both of these patent grants are directly applicable to processes and projects the Company is currently engaged in, with the intent to produce scandium products for use in both aluminum alloys and other technical applications.


A third master alloy patent application remains under review by the US patent office, titled "Direct Scandium Alloying," which employs a novel approach to fusing ground scandium oxide together with halides (fluorides) and chloride salts in a casting, which can be directly introduced into an aluminum or magnesium melt to manufacture final alloys.


May 27 - Files for Patent Protection on High Purity Alumina Manufacturing Process: Filed a final patent application with the US Patent Office earlier this month, pertaining to the manufacture of high purity alumina products ("HPA").


This application represents a final submission for review and consideration of an award of acceptance and grant.


July 7 -Announces Voting Results from Annual General Meeting of Shareholders


June 28 - Scandium International and Nevada Gold Mines Sign LOI to Pursue Critical Metals Recovery at Phoenix Mine: Letter of Intent ("LOI") to initiate a joint technical and economic feasibility program at NGM's Phoenix Mine.


i) LOI signed between SCY and NGM, defining a development program for CMR. ii) Program designed to confirm technical feasibility and economic recovery of critical metals from heap leach solutions at Phoenix Mine. iii) LOI outlines a multi-step development program, totaling US$2.7M spend, and 15 months to complete, including an on-site pilot plant. iv) LOI further outlines 50:50 JV partnership, if parties agree to construct an onsite recovery circuit to produce a series of metal concentrates. v) The refinery circuit would be located off-site from the Phoenix Mine and 100% owned and operated by SCY and vi) Metals targets include nickel, cobalt, scandium and zinc, possibly others.


Summary


Patents

Two patents were granted in the last eight months.


Extraction of Scandium Values from Copper Leach Solutions - Patent Number 10,988,828: a) Defines methods for recovering scandium from copper mine acidic solutions. b) Tailored specifically to oxide copper heap leach solvent extraction (SX) raffinates. c) Specifically employs ion-exchange technologies, pre or post copper recovery.


Scandium Master Alloy Production - Patent Number 10,988,830: a) Defines methods for manufacturing aluminum-scandium master alloy (2%). b) Identifies a two-flux system, containing a fluoride and an alkali metal chloride. c) Allows for a rare earth element oxide addition, if desired. d) Further allows for other critical metal additions to master alloys, where those are demanded as metal additions in the final aluminum alloy.


Both of these patent grants are directly applicable to processes and projects the Company is currently engaged in, with the intent to produce scandium products for use in both aluminum alloys and other technical applications.


In addition, a patent application for High Purity Alumina Manufacturing Process was filed.


"...intent to pursue a business in high purity alumina, and to employ the designs and methods contained in the patent application to manufacture HPA, for application in both the LED lighting industry and the lithium-ion battery industry.


Critical Metal Recovery (CMR) Partnership.

Roughly a year after announcing its CMR initiative, the company finally secured an LOI with Nevada Gold Mines.


The purpose of this joint development program is to confirm the economic and technical viability of a critical metals recovery ("CMR") project at the mine site. The LOI defines a detailed US$2.7 million spend program which includes bench test work, pilot plant testing, and feasibility study design work.


The program is anticipated to require 15 months to complete. With program completion, the partners intend to take an investment decision on construction and operation of a plant facility to recover critical metals from mine solutions.


Financing

All of the financing activities were from exercising of options. As per recent MD&A (Aug 11 2021):


Cash inflows from financing activities of $227,064 reflect that there were options exercised in the current six month period when compared to the period ended June 30,2020, in which there were no private placements or options exercised.


Cash position decreased during the six ­month period by $10,914 to $159,370 (December 31, 2020 $170,284) due mainly to the sale of a royalty in 2020 which was offset by the exercising of options in 2021.


The last private placement was (March 2019) at $0.18 cents for $1.06M with Rothschild Asset Management.


In short

Four releases were issued in the last eight months and valuation fluctuated between $0.15 and $0.25 cents.


The grant of two patents (Scandium Extraction from Copper Leach AND Scandium Master Alloy Productions), as well as, the patent application for High Purity Alumina Manufacturing Process were definite achievements.


Nonetheless, SCY.TO signing the LOI with Nevada Gold Mines was the highlight of the period.


The purpose of this joint development program is to confirm the economic and technical viability of a critical metals recovery (“CMR”) project at the mine site. The total development program is budgeted at $2.7 million, with the first stage budget being $500,000. NGM and the Company will each pay 50% of the budgeted cost.


Thus far (four months after the announcement), no update have been provided. Based on the last MD&A, it appears that funding for this initiative could exclusively come from the exercise of options.



It appears that SCY.TO is still very much in the early stage of the CMR effort with Nevada Gold (August 11, 2021 MD&A):


Of note, the Final Investment Decision (FID) is slated for "beginning in 2021" which is likely a typo for "2022". In the event of a successful conclusion of the Phoenix CMR Program, the construction of the recovery facility is slated for late 2022 with product availability for sale in 2023. This is in fact a year away.


A recent publication cites an interesting insight: The supply of Sc and REE in the following years will be from wastes.



The aim of this work is to evaluate the possibilities of scandium recovery routes focusing on sustainable and cleaner production. Insights into the extraction processes of scandium in light of clean technologies have been lacking, such as CO2 emission, energy consumption, sustainable management of resources, economic growth, scientific innovation, safe work, sustainable production patterns, and hazardous chemicals pollution and contamination.


Certainly, several issues must be solved, as to how far recycling is priceless than extractive processing from natural resources. It is well known that the separation of metals on recycling processing may be more expansive than from natural, due to the number of impurities found in these sources. In other words, a technical feasibility study must be taken into account. It is the key to sustainability: join the environment with the economic aspects


PS. Scandium International Nyngan Project is also cited in the article.


It's clear that Scandium International is on a "critical" path in the last four months. The LOI with Nevada Gold Mines will enable it an opportunity to demonstrate that its technology can recover critical metals (including Scandium).


The project is envisioned as an ion-exchange recovery system, capturing critical metals that are currently recirculating in heap leach copper solutions at Phoenix, specifically targeting nickel, cobalt, scandium, zinc and potentially other metals that prove to be economically recoverable.


If SCY.TO is successful in demonstrating that its process is superior to the status quo and has an economic value, it will increase the likelihood that it can replicate the effort. This also could ultimately also facilitate funding for Nyngan.


The Phoenix CMR Project does indeed represent a sustainable opportunity for SCY.TO on multiple fronts.



DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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