Kennedy’s Heap Leach Breakthrough Could Cut Costs but Scale-Up Risks Remain

Metallurgical Breakthrough at Kennedy

DevEx Resources Limited (ASX – DEV) has announced a significant advancement in the processing potential of its 100%-owned Kennedy Rare Earths Project in Queensland. Recent column heap leach tests on a large, representative composite sample from the Inferred Mineral Resource Estimate (MRE) have demonstrated strong recoveries of critical magnet rare earth elements (MREEs); including praseodymium, neodymium, dysprosium, and terbium; with extraction rates reaching up to 68%.

These results are particularly notable for their low acid consumption, ranging from just 6 to 8 kilograms per tonne of ore, which suggests a potentially low-cost and environmentally friendlier processing route. The heap leach method involves percolating an ammonium sulphate solution through the mineralised clays, which are soft and unconsolidated, starting right at the surface. This means mining can proceed without the costly removal of overburden, a significant operational advantage.

Simple Processing with Strategic Advantages

The column tests, conducted by the Australian Nuclear Science and Technology Organisation (ANSTO) in collaboration with metallurgical consultants Wallbridge Gilbert Aztec, used a 127-kilogram composite sample derived from 68 drill holes within the Inferred MRE. The tests confirmed excellent vertical flow of the ammonium sulphate solution and minimal dissolution of gangue minerals, which translates to a cleaner leachate and potentially simpler downstream purification.

Importantly, the tests showed minimal recovery of cerium, a low-value rare earth element, which enhances the economic appeal by concentrating extraction on the more valuable magnet rare earths. The balance between acid addition and impurity dissolution was carefully evaluated, revealing opportunities to optimize acid usage further to maintain high recovery rates while minimizing impurities.

Implications for Project Development and Market Position

These metallurgical advancements bolster Kennedy’s standing among Australia’s rare earth projects, particularly in the critical minerals space essential for permanent magnets used in electric vehicles, wind turbines, and other renewable energy technologies. The project’s location benefits from proximity to existing infrastructure, including transport, power, and port facilities, alongside established land access agreements with pastoral landholders.

While the current results are laboratory-scale, they provide a compelling foundation for progressing to bulk sampling and pilot-scale testing. The potential to develop a simple heap leach operation could reduce capital and operating costs compared to more complex processing methods, enhancing the project’s commercial viability.

Moreover, the extensive scale of the Inferred MRE and indications of further exploration upside to the southwest suggest that Kennedy could grow into a significant rare earth supply source, aligning with Australia’s strategic interests in critical minerals.

Next Steps and Outlook

DevEx plans to continue optimizing leach parameters to improve recoveries and reduce acid consumption further. The company’s engagement with local landholders and the Queensland government remains positive, supporting ongoing exploration and development activities. Investors and analysts will be watching closely for upcoming pilot plant results and any updates on resource expansion drilling.