VANCOUVER (miningweekly.com) – Heavy rare earth elements project developer Namibia Rare Earths has filed an application with the Namibian Mines and Energy Ministry for a mining licence for its Lofdal project, the company reported Wednesday.
Since releasing its preliminary economic assessment (PEA) in November 2014, the company has focused its Namibia operations on baseline environmental monitoring at Lofdal to support an environmental-impact assessment (EIA) for the proposed project, together with focused metallurgical optimisations, said the Halifax, Nova Scotia-based company.
It had conducted the EIA process over an 18-month period under the supervision of SLR Environmental Consultants (Namibia) and had filed final reports with the Environment and Tourism Ministry.
TSX-listed Namibia Rare Earths added that Lofdal had to receive an ‘environmental clearance certificate’ from the Ministry, as well as undergo a final technical and financial assessment of the project by the Mines and Energy Ministry to support the issuance of a mining licence.
The company further stated that the corporate objective was still to bring in a qualified technical or financial partner to participate in the development of Lofdal.
The company believes that, while difficult market conditions for the resource sector in general, and rare earths in particular, persist, Lofdal remains a unique opportunity for a sustainable supply of heavy rare earths outside of dominant producer China. Namibia Rare Earths added that there were several processing options under development that could offer significant costs savings, as well as the possibility for direct participation in the separation of rare earth oxides in Namibia.
To safeguard the project in the interim, the company implemented significant cost-saving measures on both an administrative and operational level during the mining application review period.
Meanwhile, Namibia Rare Earths also announced Wednesday that Kalidas Madhavpeddi and Bill Koutsouras had stepped down as directors, effective immediately. CEO Gerald McConnell also resigned to take over the role of chairperson of the board from Madhavpeddi. Donald Burton remains the president of Namibia Rare Earths.
The Lofdal project's current National Instrument 43-101-compliant indicated resources stand at 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 REO (TREO) cutoff grade.
Essentially, the contained tonnage of REO can double in both categories at a lower cutoff of 0.1% TREO.
The project has a calculated net present value, at a 10% discount rate, of $148-million, as well as an internal rate of return of 42%.