SOURCE: Texas Mineral Resources

Texas Mineral Resources

October 04, 2017 05:30 ET

DOE Secretary Perry and Congressman Barletta Visit Texas Mineral Resources Rare Earths-from-Coal Project at the Jeddo Coal Company in Pennsylvania

SIERRA BLANCA, TX--(Marketwired - Oct 4, 2017) - Texas Mineral Resources Corp. (OTCQX: TMRC)

---- TMRC team commences DoE funded REE from coal Pennsylvania project

---- Project targets high-value REEs including scandium

Texas Mineral Resources Corp. (TMRC), an exploration company targeting the heavy rare earths and a variety of other high-value elements and industrial minerals, is pleased to announce the Company hosted a visit from Department of Energy Secretary Rick Perry and Congressman Lou Barletta (R-PA) to the site of the Company's DoE-funded rare earth project at the Jeddo Coal Company in eastern Pennsylvania. TMRC is part of a team that includes Inventure Renewables, K-Technologies Inc. and Penn State University. The project is funded by Phase I of a two-phase DoE grant program totaling $20 million. Work on the project commenced in early September after funding was formalized with a contract signing with the DoE.

Speaking to media at the site, Secretary Perry said, "The rare metal extraction process creates 'staggeringly important' opportunities for the industry and country." "I don't think we can overstate how important the development of rare earth minerals out of our anthracite coal and the potential that it is going to have." Congressman Barletta added that "This is not our grandfather's coal," ... "This is used for manufacturing steel and, now, we are finding these rare earth materials that we are buying from China. (A consortium involving) Penn State is seeing how we can extract these rare earth elements that are nowhere else, right here."

TMRC CEO Dan Gorski walked Secretary Perry and Congressman Barletta around the perimeter of the work site, where critical rare earths, including scandium, will be reclaimed from coal overburden in a pit that was mined from the early 1900's through the 1960's, well before the modern technology applications of rare earths were known. "Our team is gratified that Secretary Perry and Congressman Barletta took the time to visit our site," said Gorski. "The work we're doing under the Department of Energy grant will demonstrate how well our process can extract key rare earths from what has been seen up to now as anthracite coal waste piles. As a country, we can begin to reduce our total dependency on Chinese REEs, with rare earths recovered in Pennsylvania."

TMRC DoE Work Targets High-Value Rare Earths Including Scandium

The National Energy Technology Laboratory of the United States Department of Energy (DOE) has been conducting studies of technology metals associated with Appalachian coal deposits. This study has included extensive sampling of various coal properties. In 2015 the DOE researchers collected 135 samples from the Jeddo Coal Co. properties, principally from drill core. The average technology metals content of these samples was 407 ppm total rare earth and 102 ppm scandium. Other work being carried out at Penn State University indicated that these metals can be effectively recovered by leaching the whole rock with ammonium sulfate. Assuming the applicability of these leaching techniques, and the very favorable prices for scandium, TMRC executed an MOU with Pagnotti Enterprises Inc. in 2016 to jointly develop these technology metals associated with the coal beds. In September, 2016 the Office of Fossil Energy of the U.S. Department of Energy issued a $23.75 million Financial Assistance Funding Opportunity Announcement titled: Production of Salable Rare Earth Elements from Domestic U.S. Coal and Coal By-Products. In June 2017, TMRC, its processing partners Inventure Renewables/K Technologies and Penn State University were selected by DoE for a Phase I grant.

Preliminary internal analysis done by TMRC, assuming a processing rate at a modest 250 tons per day of sand and siltstones associated with the coal containing an estimated 100 ppm (parts per million) scandium content, would result in an operation with an estimated capex of approximately $24 million, inclusive of a 25% contingency. Potential estimated production of scandium oxide would be approximately 13,000 kg annually. At a 250 tonnes per day production rate and using a current scandium market price of $2,000/kg such an operation would potentially result in an annual pre-tax cash flow of approximately $17 million, after royalty payments to the coal company. This analysis assumes that only the scandium recovered would be sold, attributing no value to other elements and minerals that could be recovered. "The use of scandium in making high strength aluminum alloy is well understood and documented. The only limits to its wide acceptance in the aircraft industry and for its use in military vehicles is its limited supply," said TMRC CEO Dan Gorski.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding the ability of American Mineral reclamation to seek out and develop projects, success in the ability of the Company and its partners to successfully complete the DOE project and the ability of the Company to maintain relationships with its current partners. When used in this press release, the words "potential," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if," "anticipate," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, risks related to the development of the Round Top project, up-scaling of extraction testing, risks related to changes in future operating costs and working capital balance, risks related to mining results not matching preliminary tests and risks related to the ability of TMRC to raise adequate working capital and continue as a going concern, as well as those factors discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K, as filed on November 30, 2016, and other documents filed with the U.S. Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.

About Texas Mineral Resources Corp.

Texas Mineral Resources Corp.'s focus is exploring and, if warranted, developing its Round Top heavy rare earth and industrial minerals project located in Hudspeth County, Texas, 85 miles east of El Paso. Additionally, the Company plans on developing alternative sources of strategic elements and minerals through the environmentally beneficial processing of coal waste and other waste materials through its American Mineral Reclamation subsidiary. The Company's common stock trades on the OTCQX U.S. tier under the symbol "TMRC."

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