Everest Metals Corporation (ASX: EMC) has unveiled its maiden Mineral Resource Estimate (MRE) for the Mt Edon Critical Mineral Project (M59/714) in the Mid-West region of Western Australia of 3.6 million tonnes @ 0.22% Rb2O and 0.07% Li2O (at 0.10% Rb2O cut-off) for more than 7,900 tonnes of contained Rb2O.
“Our initial Mineral Resource Estimate validates the tier-1 scale and grade of the Mt Edon deposit. This highlights only the beginning for the Mt Edon Critical Metals project, with high-grade rubidium mineralisation still open along strike with numerous additional targets on the mining lease to be tested,” Executive Chairman and CEO, Mark Caruso, said.
“Rubidium is a critical mineral which plays a significant and growing role in national security, healthcare and emerging energy applications. Rubidium currently has a small global market, but this has been driven by supply constraints rather than demand.
“Our initial MRE will serve as a foundation for a mining Scoping Study, as the world-class scale and grade prompt us to move rapidly to complete this study in conjunction with ongoing rubidium extraction and purification testwork. We will finalise test work in Q4 CY24 to feed into the Scoping Study, which is due for delivery in Q1 CY25. Planning for the next phase of resource drilling is also underway and offtake negotiations set to commence, as we accelerate our strategy for development of Mt Edon.”
Production and Market Trends
Despite the breadth of applications and demand for rubidium and caesium and their hydrides, global production of Cs and Rb is significantly lower than that of other alkali metals, and the cost per kg is substantially higher than lithium, sodium or potassium. Due to the gradual depletion of caesium resources, but the continued demand of these industries, a replacement is required, with Rb being a suitable candidate. The downstream application fields of rubidium salts are rapidly growing, enhancing the company’s market advantage in this sector. As a result, Rb has been listed as one of the 35 critical minerals by several countries around the globe including USA and Japan.
Several market factors support growth in demand for Rubidium and underpin the current price of ~USD1,200/kg. Among these, there is significant global demand for newer and faster electronic products due to the rapid pace of innovation, technology advancement and R&D activities in the electronics industry. This increasing demand for Rb, coupled with the fact that Rb is difficult to source due to extremely limited global production, underpins the extremely high price of Rb products.
North America holds a significant share of the rubidium market in terms of both market share and revenue. However, like most critical minerals, China maintains control of the market. Commodity analysts believe if more rubidium was produced, the market could grow rapidly and therefore its very small market size can be partially attributed to supply constraints, rather than a lack of demand.
Tests underway
Metallurgical test work for Rb extraction is ongoing at ECU’s Mineral Recovery Research Centre (MRRC). EMC is planning environmental studies, including Flora and Fauna assessments, and is preparing the necessary documentation for the Mining Proposal. The company aims to obtain all required approvals by the end of 2025.