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CRITICA LIMITED (CRI) - Pioneering Australia's Largest Clay-Hosted Rare Earth Deposit

• Andrew Musgrave

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Discover how Critica Limited is positioning itself to become Australia's next rare earth developer through its flagship Jupiter project – the largest clay-hosted rare earth deposit in Australia with an impressive 1.8 billion tons of resource at 1,700 ppm TREO.

CEO Jacob Deysel, a mining engineer with nearly three decades of global experience, reveals the three key advantages setting Jupiter apart: scale, simplicity, and speed. The project's innovative beneficiation-first approach reduces mass by 95% while achieving an 800% upgrade in feed grade using conventional metallurgical equipment. This pathway delivers a high-grade mixed rare earth carbonate while keeping capital expenditure, operating costs, and environmental footprint exceptionally lean.

What makes Jupiter particularly valuable is its rich concentration of magnet rare earth elements – neodymium, praseodymium, terbium, and dysprosium – which represent 80-90% of the basket value and are essential for manufacturing permanent magnets that power future technologies. With China controlling approximately 70% of global mining and 90% of refining capacity, Western manufacturers are urgently seeking alternative, transparent, and ESG-compliant supplies of these critical minerals.

Jupiter's concentrate also features exceptionally low uranium and thorium levels, simplifying approvals, shipping logistics, and market access to sensitive regions including the US, Japan, Korea, and Europe. Beyond Jupiter, satellite discoveries at Aurora and Juno demonstrate the district-scale potential of the Brothers project, potentially transforming it from a single-deposit story into a multi-deposit rare earth district.

Listen as Jacob outlines Critica's ambitious development timeline, including partnerships with ANSTO, Minutech, and GAVAQ to advance their metallurgical program, a pilot plant to upscale beneficiation, and a comprehensive scoping study expected before mid-2024. Subscribe to ASX Briefs for ongoing updates as Critica works to transform Jupiter from a world-class resource into Australia's next rare earth development success story.

Andrew Musgrave Host

Welcome back to another episode of ASX Briefs, where we bring you the latest updates from Australia's upcoming companies, and today we have the pleasure of speaking with Jacob Deysel, the CEO of Critica Limited. Critica is rapidly advancing its Jupiter Rare Earths project through a beneficiation first pathway, designed to deliver a high-grade mixed rare earth carbonate product while keeping CapEx, Opex and environmental footprint lean.
 
 Jacob, thanks for joining me today and welcome to the ASX Briefs podcast. 

Jacob Deysel Guest

Thank you, Andrew, nice to be with you this morning. 

Andrew Musgrave Host

Now, Jacob, for investors that may be unfamiliar with Critica, do you want to just provide a brief overview of the company? 

Jacob Deysel Guest

Absolutely, Andrew. Let me introduce you to the new Critica. We're no longer just an explorer. Under my leadership, Critica is really rebadging as being Australia's next rare earth developer. Our flagship, the Jupiter Project in Australia, is the largest clay-hosted rare earth deposit. But I think, more importantly, it has a basket really dominated in high-value magnet rare earths and, as you know, that drives the technology of the future. Now I'm a mining engineer by background close to 30 years’ experience in terms of developing, building and turning around mining operations and projects globally and I'm bringing that experience to Critica and move us into the next chapter. 

Andrew Musgrave Host

Okay, now you mentioned that Jupiter is the largest and highest-grade clay hosted rare earth deposit in Australia. So, what makes this project so strategically unique? 

Jacob Deysel Guest

Look, I think if I have to summarize and how Jupiter differentiated itself from our competitors, I could probably say that in three words, it's scale, simplicity and speed. Now, in terms of scale, we're in a league of our own. Jupiter has a global resource of 1.8 billion tons at 1,700 parts per million TREO, so very high grade for a clay-hosted deposit and that makes us the largest clay-hosted rare earth deposit in Australia, as we mentioned. But probably more that stands out more for me is the simplicity when it comes down to the beneficiation piece, we have an option to beneficiate first and then we leach second. Now this is unlike ionic clay. We have that opportunity to beneficiate and using really very simple conventional metallurgical equipment, we've been able to reduce the mass very early by about 95%, and it allows us to concentrate the rare earths we are looking for in just 5% of the original mine volume. So, we're not losing 95%, we're just being able to concentrate it into a smaller stream and when we do that, we also get an upgrade of about 800% in that feed grade. And I think therefore, being clay hosted also means that we have a potential for simpler, easier mining and that obviously hopefully translates into lower cost mining. And then lastly, just speed, we're accelerating at the moment.

Under my leadership, about three weeks ago listeners can have a look We've appointed ANSTO and Minutech, which is two key laboratories, which is advancing our hydrometallurgy program and that is to produce our first commercial grade kind of product, and that would be a mixed rare earth carbonate or MREC. And then, lastly, we we've appointed GAVAQ, which is our Vietnam partners to take this front section, this beneficiation piece, upscale that so that we can produce a bit more concentrate and that will then allow us to do further test work and optimize this MREC optimization and product production. 

Andrew Musgrave Host

Okay now, the project is rich in magnet rare earth elements, but also high value heavy rare earth elements like dysprosium and terbium, which are under Chinese export control. So how is Critica positioning itself to supply these critical elements? 

Jacob Deysel Guest

Andrew, you're absolutely right. You know, apart from being the largest clay-hosted rare earth resource, Jupiter is also the largest magnet resource in Australia and therefore rich in those four elements that carries about 80 to 90% of the basket value of most projects. And that is neodymium, praseodymium, terbium and dysprosium, which gets used in the manufacturing of permanent magnets and really permanent magnets fuel technology of the future. Now, with China controlling about 70% of the mining, 90% of the refining globally, you know the Western OEMs or original equipment manufacturers and governments are desperate to secure some ESG-compliant supply of these elements. And I think you know if I think about Australia and the advantage that brings for us being based in Australia but probably more so important that we are based in a Tier1 location, Australia, gives us that trusted jurisdiction, world class infrastructure and regulatory stability and that is exactly what customers are demanding. 
 We see a significant also in this industry, significant policy tailwinds. If we look at what's happened in the US with the Department of Defence putting a floor price under NDPR, we're seeing Europe, Japan, looking at the strategic minerals and stockpiles. We are directly aligned with that critical supply of these minerals going forward. And then I think in terms of our development path, we are positioning Critica as a reliable non-Chinese supply of these magnet rare earths that the world urgently needs. 

Andrew Musgrave Host

Okay, and Jupiter's concentrate is notably low in uranium and thorium. So how important is this for accessing downstream markets in the US, Japan, Korea and Europe? 

Jacob Deysel Guest

That's a very good question and it's usually significant in the sense that many projects really are challenged by a high uranium and thorium, which what that does, it really translates into complicated approval, shipping and market access is difficult, where Jupiter is different in the sense that our levels are exceptionally low. Now, that matters in the sense that it allows for easy approval and especially in terms of export of material, so our material wouldn't classify as radioactive and therefore it's easily to export to more sensitive areas like US, Japan, Korea, it simplifies, potentially the logistics around this given, you know, the potential for low radioactive material here, it's much easier to transport. Market access, you know, specifically from customers, they're looking for a clean traceable supply and therefore a lot more ESG compliant. And then, just on the commercial side, in terms of having a lower uranium and thorium, potentially should translate into reduced cost complexity and therefore makes us potentially a much more attractive partner for this Western supply chain.

Andrew Musgrave Host

You've also highlighted the upside at satellite targets Aurora and Juno. So, what excites you most about these areas and how could they enhance the broader Brothers project? 

Jacob Deysel Guest

Yeah, I think the Brothers project if you think about it, Critica owns 100% of the Brothers project. Jupiter is only one of six discoveries in the wider Jupiter. So, what really excites me about it is those two Aurora and Juno satellite discoveries we've made is that it really demonstrates the scale potential of the Brothers project. So, Jupiter is just the beginning for us. Now we're focusing our attention and resources on Jupiter specifically, but what this does give us it gives us enormous exploration upside here and it's really a point where this is more like a district that potentially host Jupiter style system of deposits. There's significant diversification in mineralization and early data already shown that there's different distributions with potential for higher magnet rare earths. It's got that district scale growth potential and it gives us optionality and flexibility really. And really what it does, it makes Brothers not just a one-deposit story but the potential for multiple-deposit rare-earth district as we see it at the moment. 

Andrew Musgrave Host

Now, finally, what are some of the key milestone’s investors should keep an eye on over the next 12 to 18 months? 

Jacob Deysel Guest

Yeah, I think our focus is very clear with messages to the market. We are really focused on de-risking Jupiter and providing Critica as being, you know, really proving Critica as being Australia's next rare earth developer. Now there's some key priorities to look out for. Specifically, our metallurgical program is live now, as I mentioned, ANSTO, Minutech and GAVAQ and that's really to produce this mixed rare earth carbonate. GAVAQ is working on a pilot plant which will upscale this front section beneficiation piece and that will allow us more product or concentrate being produced to that will go into further MREC optimization. 

And then, being a mining engineer, I'm very keen to kick off the scoping study. So, we're working on, you know, the scope of that study at the moment and hope to deliver a scoping study before the middle of next year. And then, as part of this scoping, we will obviously do a bit of drilling just to upgrade our resource from inferred to indicated. And then, you know, all of this really puts us in a very good position to start talking to downstream OEMs and processes and start, you know, shaping up some commercial agreements there. So, in short, I think the next 12 to 18 months are about turning Jupiter from a world-class resource that it is at the moment into a credible development story. 

Andrew Musgrave Host

Okay, Jacob. Well, it's been great to chat today to get an update on the company. So, thanks for your time and we look forward to further updates from Critica in the upcoming months. 

Jacob Deysel Guest 

Fantastic. Thanks, Andrew. Appreciate the time. 

Andrew Musgrave Host

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.