Name and Location
Lofdal rare earths project, Namibia.
Client
Namibia Rare Earths.
Project Description
The Lofdal project represents a unique opportunity for the development of a significant heavy rare earths supply outside of China.
Current National Instrument (NI) 43-101-compliant indicated resources are 5 594 t rare-earth oxides (REO), with 85.6% heavy rare earths enrichment and inferred resources of 4 180 t REO, with 85.1% heavy rare earths enrichment, all reported at a 0.3% total rare-earth oxides (TREO) cutoff grade.
The contained tonnage of REO essentially can double in both categories at a lower cutoff of 0.1% TREO.
Net Present Value/Internal Rate of Return
The project has a calculated net present value at a 10% discount rate, of $148-million and an internal rate of return of 42%.
Net Present Value/Internal Rate of Return
Not stated.
Value
Not stated.
Duration
Not stated.
Latest Developments
TSX-listed Namibia Rare Earths has reported that the Namibian Ministry of Mines has renewed the Lofdal rare-earth element project's ‘exclusive prospecting licence 3400’ for a further two years.
The recently filed National Instrument 43-101-compliant preliminary economic assessment (PEA), concludes that the Lofdal project currently has the potential to produce an average of 1 500 t/y of separated rare-earth oxides, which will generate after-tax cumulative cash flow of $259-million.
The PEA has indicated that there is considerable potential to expand the current mineral resource and recommends that additional drilling be conducted to provide for an extended mine life, in conjunction with a six-month prefeasibility study programme.
Key Contracts and Suppliers
MDM Engineering Group (principal consultant), Mine Technics (pit optimisation, mine planning and operations), Swinden Geoscience (geological inputs) and Digby Wells Environmental (environmental management and planning).
On Budget and on Time?
Not stated.
Contact Details for Project Information
Namibia Rare Earths, tel +1 902 835 8760, fax +1 902 835 8761 or email info@NamibiaREE.com.
MDM Engineering Group, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.
Swinden Geoscience, tel +1 902 444 3525, fax +1 902 444 7802 or email info@swindengeoscience.ca.
Digby Wells Environmental, tel +27 11 789-9495, +27 11 789-9498 or email info@digbywells.co.za.