Name of the Project
Lofdal heavy rare earths project.

Location
The project is located in north-west Namibia.

Project Owner/s
Namibia Critical Metals (NCM).

Project Description
The Lofdal project represents a unique opportunity for the development of a significant heavy rare earths supply outside of China.

The project has the potential to produce an average of 1 500 t/y of separated rare-earth oxides.

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%.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
In January 2020, NCM announced its intention to enter into an agreement with Japan Oil, Gas and Metals National Corporation (Jogmec) to jointly explore and develop the Lofdal project.

Following the first meeting of the management committee formed by NCM and Jogmec, the objectives of the initial Term 1 work programme have been agreed to and include the completion of a 7 700 m drill programme at Area 4.

The latter intends to double the current mineral resource and deliver an updated National Instrument 43-101 report, in line with Canada’s Standards of Disclosure for Mineral Projects.

Further, NCM hopes to complete 1 500 m of exploration drilling on two priority satellite deposit targets and undertake further metallurgical testwork to refine the process flowsheet.

The $3-million Term 1 work programme started in February 2020 and is expected to continue until March 2021. It will be funded pursuant to a firm, nonrefundable commitment by Jogmec.

Following completion of the Term 1 programme, Jogmec will have the right to earn a 40% interest in the project by funding an additional $7-million in exploration expenditures and may earn an additional 10% interest by funding an additional $10-million in exploration expenditures.

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).

Contact Details for Project Information
Namibia Rare Earths, tel +1 902 835 8760, fax +1 902 835 8761 or email info@NamibiaREE.com.