TORONTO (miningweekly.com) – Heavy rare earth project developer Namibia Rare Earths has started work on an environmental-impact assessment (EIA) for the Lofdal project, after selecting SLR Environmental Consulting to lead the study.
The TSX-listed company had focused its operations in Namibia on baseline environmental monitoring after releasing the preliminary economic assessment on November 14, 2014, with an eye on completing the EIA by the third quarter of 2016.
Namibia Rare Earths was working on continued metallurgical studies to improve concentrate grades and recoveries, as well as modest geological field programmes to support future drilling to increase mineral resources.
From a corporate perspective, the company continued to evaluate qualified technical or financial partners to advance development of Lofdal through to feasibility and mine development.
“Management and the board are cognisant of difficult market conditions and have undertaken steps to minimise administrative costs and overhead to ensure funding to support the approved project activities over the next 12 to 24 months,” the company said.
LOFDAL PROSPECTS
The Lofdal project represented a unique opportunity for the development of a significant heavy rare earths supply outside of China.
The project's current National Instrument 43-101-compliant indicated resources stood 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.
The contained tonnage of REO essentially could double in both categories at a lower cutoff of 0.1% TREO.
The project had a calculated net present value, at a 10% discount rate, of $148-million and an internal rate of return of 42%.