Vital Metals says a study that will set out “the potential size and scalability” of a future rare earths mine east of Yellowknife will appear this quarter.
In a statement this week, Vital said the report – known as a scoping study – would also look at the possibility of mining for niobium at its Nechalacho site.
Vital briefly ran a “demonstration mine” at Nechalacho a few years ago but has since spent time trying to make the case for a much larger operation at a different area of the site known as the Tardiff deposit.
The company says the presence of an attractive amount of niobium could “add substantial value” to the Nechalacho project. The scoping study should set out, in more detail, what that looks like.
“Niobium pentoxide is experiencing increased demand due to its low oxidation point and relatively high melting point,” Vital stated.
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“It is used as an alloy in aeronautic engines, electronic applications (due to its superconducting properties) and as an additive to lithium-ion batteries to enhance battery life.
“Niobium is a key critical mineral, with limited current production sources globally.”
Critical mineral demand is fluctuating in tandem with the United States’ scattergun approach to world trade. An ongoing feud with China, for example, has restricted US access to some Chinese production of critical minerals, which might help Canadian projects get off the ground – though there’s no guarantee that President Donald Trump will maintain his position on China or stop meddling with Canadian trade relations.
(Vital itself had been part of a national security debate when it agreed to sell ore from Nechalacho to a Chinese firm. A Saskatchewan-based Crown corporation later stepped in to buy the product instead.)
Vital says it has formed a consortium with other groups to work with Ottawa “on potential acceleration of the creation of a Canadian-only rare earths supply chain.” That work appears to be in an early stage.
“Vital anticipates updates on government discussions in coming months,” the company stated this week.
