Search is focusing on 5 of these critical rare earth elements which have constricted supply and increased demand: Dysprosium (Dy), Neodymium (Nd), Terbium (Tb), Europium (Eu), and Yttrium (Y). Permanent Magnets for electric motors (wind turbines, hybrid and electric vehicles); Catalysts for emissions, phosphors for energy efficient lighting, electronic devices, x-ray machines, aerospace and defense. New technology – magnetic refrigeration (gasless).
Search has a District in SE Labrador Canada which is 70km x 8km. It currently hosts the FOXTROT projecy – a 14 year mine (8 yr open pit – 6 yr underground). Two other prospects have channel sampling: Deepwater Fox has up to 15% higher grades and could be up to 3 times larger than FOXTROT . Fox Meadow our third discovery is very similar to Foxtrot in terms of grade and dimension. There are up to 20 other potential prospects to explore in the District.
Considering these discoveries are road accessible, essentially tidewater and remarkably consistent geologically with FOXTROT, we believe that the opportunity could extend well beyond the 14-year mine life contemplated in the FOXTROT PEA.
Search has a low capital cost project ($152M with $ 33M contingency) which is scalable to meet future development in the district.
The Search opportunity also includes a proprietary metallurgical process which will eliminate the need for costly grinding and the use of traditional bubble flotation extraction. This simpler process is expected to provide three significant advantages:
This process has a patent pending and we believe it could be licensed to other producers.
Foxtrot has a 14 year mine life – other prospects would add years to the mine life of the District. Net Revenue for Life of Mine at Foxtrot Only is $ 1.7B.
While we have yet to drill the Deepwater Fox and Fox Meadow discoveries, surface assays at FOXTROT have held up in the drilling results at depth. We believe the same will hold true for these other two FOXTROT-like deposits as they are both in the same geological sequence. Or belief is that FOXTROT is one of many.
Relationships with all levels of government have been open and transparent and are described by arties as excellent. Search has been partially funded by the Federal and Provincial governments to validate the metallurgy process, and governments are being extremely helpful with our roadmap leading up to environmental assessment. The governments are currently providing $ 1.25M towards the current $1.9M pilot plant, which is nearing completion.
Our proprietary process produces a dry stackable residue as opposed to wet tailings which we believe offers a safer, more manageable and acceptable environmental footprint. We are able to measure the contents of that residue as we do our pilot plant testing addressing environmental concerns well ahead of construction.
Search engaged with the local aboriginal interest early in the exploration stage (2012), and have a very positive working relationship including an exploration agreement.
We have initiated environmental application process which is being led by an experienced firm that has a relationship with local aboriginal peoples. The local aboriginal government is very supportive of the overall project and we see no problems negotiating a fair and reasonable agreement with them.
