WELCOME TO SCANDIUM INTERNATIONAL MINING CORP.Scandium International Mining Corp. (SCY) owns a 100% interest in the Nyngan Scandium Project, located in New South Wales, Australia, approximately 500 kilometers northwest of Sydney. The Company completed a preliminary economic assessment1 for the project in October 2014 and is focused on advancing the Nyngan Scandium Project to feasibility, with the objective of being the first company to achieve production from a primary scandium mine. Subject to financing, Scandium International expects to complete a feasibility study for the project in late 2015, with the objective of commencing mine construction in 2016 and scandium production in 2017. The Company owns two additional scandium exploration properties: the adjacent Honeybugle Scandium property in NSW, and the Tordal Scandium/REE property in southern Norway.
Scandium Supply. Scandium has long been recognized as a valuable commodity, but economic concentrations of scandium are rare. Current supply is sourced from low-grade stockpiles or as a byproduct from other mineral processing operations. These limited supply sources have resulted in high market prices and inadequate volume for wide-scale adoption.
Scandium Demand. Despite scandium's scarcity, over the past two decades multiple potential high-value commercial uses for the metal have been developed. Of particular interest is the addition of scandium into various aluminum alloys. Relatively small scandium additions into aluminum alloys produce stronger, lighter, heat and corrosion resistant, weldable aluminum products. The aircraft industry depends on advanced aluminum alloys, and would incorporate Al-Sc alloys if consistent scandium supply was available. The automotive sector is increasingly incorporating aluminum alloys into its products to achieve weight reductions and better fuel efficiency. Al-Sc alloys are also used today in bicycles, golf clubs and other sporting accessories where both strength and lightness are important. These applications represent pioneering uses for Al-Sc alloys that should expand to a much wider range of applications, once adequate supplies of commercially priced scandium are available for purchase.
Scandium exhibits very good electrical conductivity and excellent heat stabilization qualities. The primary use for scandium today is in solid oxide fuel cells ("SOFCs"), where both of these attributes dramatically improve performance. Incorporation of scandium in SOFCs delivers higher power outputs and promotes the desired chemical reaction at a lower operating temperature, resulting in dramatically improved unit life cycles. Numerous other applications have been identified and are under development, most notably for strength and superior conductivity in high voltage power transmission lines.
Australia, specifically the New South Wales lateritic clay belt, represents a recent, game-changing discovery of scandium at grades approximately four times the grade of existing sources. These resources are surface-mineable and can deliver scandium at large enough scale to promote much wider use of the metal. Scandium International believes that an assured source of scandium, offered at realistic pricing levels, will promote dramatic increases in commercial scandium demand. Based on the production and pricing estimates outlined in the preliminary economic assessment, Scandium International believes the Nyngan Scandium Project can meet market expectations for both supply and price.1
1. PEA economics calculated using 100 ppm Sc cut-off grade, US$2,000/kg Sc price and A$1:US$0.90 exchange rate. The PEA is preliminary in nature and should not be considered to be a pre-feasibility study or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. See Cautionary Notes -- Preliminary Economic Assessment.