This US-Based Rare Earths Company Is Different From Most

Rare earth companies are attracting the attention of investors as the U.S. looks to reduce its reliance on overseas suppliers of these critical minerals.

From defense technology to electric vehicles to the most innovative technological innovations shaping the world today, at their core are the 17 elements that are grouped into the category of “rare earths”.

So, it is clear why a reliable supply is important.

However, developing new mines can take years, while processing rare earths into usable materials presents its own technical and financial challenges. It is a timely, expensive process and one that doesn’t help the U.S. gain momentum in the short-to-medium term.

Some companies have found a different solution, and Tactical Resources (Nasdaq:TREO) is one of them.

Rather than starting a new mining operation, it is targeting rare earth-enriched material that has already been mined and stockpiled. 

A different way to source rare earths

Traditionally, for a rare earth company to begin mining, they need to identify a deposit, develop the mine, and construct the necessary infrastructure required before the company can even begin production. This is a costly and time-consuming activity.

Tactical Resources, however, is taking a different approach.

Its Peak Project in West Texas is focused on rare earth-enriched material that is already stockpiled at the existing Sierra Blanca Quarry, which is currently also used to produce ballast for the Union Pacific Railway.

Instead of excavating a new deposit, Tactical Resources aims to recover valuable rare earth elements from 1.5  million tonnes of material that is lying there, already mined and stockpiled.

The advantage is that this means that Tactical can skip the exploration, excavation, and infrastructure development associated with a conventional mining project and a lot of the costs that come with it.

Why Tactical’s processing approach matters

It isn’t just the use of tailings that sets Tactical Resources apart from many other rare earth miners; it is also how they intend to process the minerals.

Rare earths aren’t just sitting around waiting to be found.

In fact, the name rare earths gives a picture of the difficulty of mining the material. Believe it or not, rare earths are not rare; in fact, they are very abundant. The issue is that they are rarely found in high concentrations in a large, convenient, and mineable.

Rare earth processing usually involves crushing and grinding the ore, concentrating the rare earth-bearing minerals, chemically extracting them, and then separating and purifying the individual elements.

Tactical Resources hopes to simplify that sequence. It is using a process known as direct leaching.

Rather than mining a new deposit, Tactical aims to extract rare earth elements directly from material that has already been mined, crushed, and stockpiled at the Sierra Blanca Quarry. Its proposed direct-leaching process uses a chemical solution to recover the elements, potentially avoiding some of the processing stages required by conventional rare earth projects.

Tactical Resources calls its Peak Project one of the few direct-leach-extractable rare earths projects in the world.

Can Tactical turn its different approach into a viable business?

There is no question that Tactical’s strategy aligns with the US effort to develop domestic sources of critical minerals and reduce reliance on overseas supply chains.

In fact, given Tactical’s Peak Project, both through the use of an existing stockpile of material or tailings and its use of direct leaching as a way to process, there is an argument that it offers a way for rare earth supply to come online faster than some alternatives if successful.

However, the company remains at an early stage of development.

Tactical has several milestones ahead before the question of whether it can turn potential into profitable business can be answered.

Its next phase of work is expected to focus on refining the processing method, assessing permitting requirements, advancing engineering plans and developing relationships with potential downstream partners. These steps should help establish what it would take to move the Peak Project towards commercial production.

If it can overcome these challenges, Tactical could offer a different route towards domestic rare earth production, using material that is already above ground. But until the economics and processing performance are established, the potential advantages remain unproven.

About Tactical Resources

Tactical Resources is a natural resources company focused on rare earth elements critical to advanced technologies, including semiconductors, electric vehicles, robotics, aerospace systems, and national defense applications. The Company is advancing the Peak Project in Hudspeth County, Texas, as part of its strategy to help build a secure domestic supply chain, reduce reliance on foreign-controlled sources and strengthen North American critical mineral security.

Tactical Resources is also pursuing innovative metallurgical processing and separation technologies designed to improve the economics, scalability, and sustainability of rare earth production. Through this integrated approach, the Company aims to become a key participant in the rapidly growing U.S. critical minerals ecosystem.

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