Matamec Explorations Inc., developer of the Kipawa rare earths project in western Quebec, announced on Monday its mineral processing pilot plant operations for the rare earths project have already went online.

Matamec Explorations Inc. said the pilot operations of the mineral processing plant kicked off at SGS Minerals Services, an independent laboratory. The process involved crushing and grinding circuits, immediately followed by two stages of magnetic separation.

The two main goals of the pilot operations were to prove and substantiate earlier test results on a larger scale, as well as create adequate feed for downstream hydrometallurgical work.

"The processing of rare earth ore is the biggest obstacle when developing a rare earth project." said Andre Gauthier, president of Matamec Explorations Inc..

Over the next three weeks, Matamec Explorations Inc. said it will continue to treat some 15 tonnes of ore in order to come up with approximately 5 tonnes of mineral concentrate, which it will feed into the hydrometallurgical pilot plant to generate a mixed rare earth concentrate final product.

"Matamec Explorations Inc. and the SGS technical team have worked diligently for more than two years to develop a new process that is both simple and low cost. We are extremely pleased to successfully progress into the pilot plant phase in the development of Kipawa. Now with the added expertise provided by Toyota Tsusho Corporation (TTC) network, Matamec is geared to fast-track the Kipawa rare earth project to production."

The hydrometallurgical pilot work is scheduled to commence in early Q3 2012, the Montreal-based rare earths miner said in a statement.

Vehicle maker Toyota Motor Corporation (TMC) is intent to gain access to the rare earths elements present in the Kipawa project, which it will use to make its hybrid and electric vehicles.

Toyota Tsusho Corp, trading arm of TMC, has been reported to have agreed to fund a feasibility study into the Quebec rare earths development and ultimately earn a 49 per cent hold on the project.