{"id":25277,"date":"2022-09-06T10:13:17","date_gmt":"2022-09-06T09:13:17","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=25277"},"modified":"2022-09-06T10:13:17","modified_gmt":"2022-09-06T09:13:17","slug":"why-resources-magnesium-oxide-secures-critical-minerals-supply","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/why-resources-magnesium-oxide-secures-critical-minerals-supply\/25277\/","title":{"rendered":"WHY Resources’ high-grade magnesium oxide secures critical minerals supply chain"},"content":{"rendered":"

Barry Baim, Corporate Secretary and Director of West High Yield<\/a> (W.H.Y.) Resources Ltd, explains how the company is helping to meet net zero targets through development at its Record Ridge magnesium property in Canada.<\/h2>\n

Geopolitical, environmental, social, governance (ESG) and global reserve depletion are all factors that are likely to be the main sources of risk in critical mineral supply over the coming decades. West High Yield (W.H.Y.) Resources Ltd. is an advanced-stage mining exploration and development company focused on the acquisition, exploration, and development of critical mineral resource properties in Canada, with a primary objective to develop its Record Ridge magnesium, silica, and nickel deposit using green processing techniques to minimise waste and CO2<\/sub>\u00a0emissions.<\/p>\n

10,590,000 Metric Tonnes Measured & Indicated (M&I) contained magnesium based on completed NI 43-101 by SRK Consulting Engineers of Denver Colorado.<\/p>\n

The mine permit application was submitted on 14 February 2019, and the application was amended on 15 February 2022, with the permit expected to be granted in 2022. The world-class Record Ridge Magnesium asset is one of the highest grades that can produce pharmaceutical\/food grades of over 99% purity magnesium oxide (MgO), along with nickel, iron, and silica credits.<\/p>\n

Updated optimisation PFS-2 completed in 2021 highlighted robust project economics with an after-tax NPV of 10% of over C$1.3m and IRR of 68% based on $3,000\/tonne MgO over a 170-year mine life with an upfront capital requirement of C$300m. The company\u2019s short-term plan is the development of a demonstration plant at a budget of $15-20m, with potential 75% federal\/provincial funding and 25% company funding, being commissioned in 10-12 months.<\/p>\n

Record Ridge magnesium property<\/h3>\n

Recognising the ESG importance and contribution to global decarbonisation, WHY Resources is focused on the development of its 100% owned Record Ridge (RR) Magnesium Property, as well as bringing into production one of the world\u2019s largest, greenest deposits of high-grade magnesium.<\/p>\n

Located 2km north of Washington State in Rossland, British Columbia, Canada, the RR property includes a 7.5km2<\/sup> outcrop of nature\u2019s greenest building blocks. WHY\u2019s world-class magnesium asset is of the highest grade that can produce pharmaceutical\/food grades of over 99% purity magnesium oxide (MgO), along with nickel, iron, and silica credits. Existing infrastructure includes roadways, power, water, local workforce, and proximate CP Rail Hub, enabling WHY to efficiently and economically fill North America\u2019s global demand for eco-friendly materials for generations to come.<\/p>\n

Benefits of magnesium oxide<\/h3>\n

Since completing the positive preliminary economic assessment (PEA NI 43-101) in 2013, demand for MgO has risen significantly. MgO is a critical mineral that is important in the physiological wellbeing and sustainable future of mankind, as well as a key input in the advancements of green industrial manufacturing of enhanced products such as pharmaceutical-grade magnesium, crop nutrient, aerospace\/automotive components, and potential magnesium EV batteries.<\/p>\n

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Current global annual market for all Mg products exceeds 29 million MT. The North American magnesium compounds markets are highly dependent on imports, which represent over 50% of the demand (USGS, 2017). In fact, American production of caustic and refractory magnesia is declining, and, consequently, imports are expected to be on the rise. This presents an attractive situation for WHY as a prospective North American producer.<\/p>\n

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\u00a9 iStock\/Who_I_am<\/figcaption><\/figure>\n

As a result of the US supply shortfall relative to demand, magnesium has been classified as a critical mineral\/metal to be stockpiled in order to reduce dependence on imports. The role of magnesium in the sectors of pharma health and wellness, agriculture, construction, energy metals, the integral role in the evolution of vehicle manufacturing, and potential sustainable long-life, high energy-density, rechargeable Mg batteries cannot be understated.<\/p>\n

The primary product to be produced from the mine ore using the company\u2019s proprietary process is magnesium oxide. As a result of its 99% plus purity, the processed MgO can be used in any of the following industry\/product verticals listed in order of priority for sale:<\/p>\n