Name of the Project
Longonjo neodymium/praseodymium (NdPr) project.

Location
The project is located in Angola – 4 km from a modern rail line leading directly into the Atlantic Port of Lobito.

Project Owner/s
Pensana Metals holds an 84% interest in Longonjo through its 84% holding in Angola registered company Ozango Minerais, which owns 100% of the prospecting licence.

The Angolan government holds a 10% interest and the company’s Angolan partners hold the remaining 6%.

Project Description
Longonjo has indicated and inferred mineral resources of 226-million tonnes grading 1.47% rare-earth oxides and 0.33% NdPr. A prefeasibility study (PFS) has indicated the viability of a long-life, low-cost openpit operation based on a weather-zone component of the Longonjo resource estimate.

The focus of the PFS is on the initial development of the highest-grade portion of the near-surface weathered-zone mineralisation, which is a subset of the total project mineral resource estimate.

The PFS envisages openpit mining and the two-phase development of a two-million tonne-a-year processing plant and associated infrastructure, producing on average 56 000 t/y of NdPr concentrate for export.

The openpit will be a free dig operation, with a very low strip ratio. The processing plant will use floatation to produce a high-grade rare-earth concentrate. The project has a nine-year life-of-mine.

Potential Job Creation
The project will provide training for about 260 jobs at the mine.

Net Present Value/Internal Rate of Return
In the base case scenario the project has an internal rate of return of 101%, with a payback of 13 months.

Capital Expenditure
Initial capital costs are estimated at $130.6-million.

Planned Start/End Date
The project is expected to take 14 months to implement from construction to commissioning.

Latest Developments
Pensana plans to convert further inferred mineral resources to indicated resources.

It also plans to optimise metallurgical process capital deployment, complete pilot plant test-work to demonstrate offtakers’ acceptance of the mine’s production and apply fiscal incentives established in the company’s mining investment contract.

Completion of the current geotechnical studies and option studies on a tailings storage facility (TSF) is also included.

Key Contracts and Suppliers
Wood Group (lead engineer, TSF, infra-structure, mining, process plant engineering, cost estimation, surface water management); SRK Consulting (mineral resource estimate and model); HCV Africa (environmental- and social-impact assessment and baseline studies); Grupo Simples (environmental and social assessment, stakeholder engagement – Angola); AVM Advogadas (Angola legal); DLA Piper (Australia legal); Vic McLaglen (legal consultant); Auralia Metallurgy (metallurgical testwork facility – flotation); Bureau Veritas Minerals (metallurgical testwork – comminution); ALS Mineralogy (mineralogy testwork);

Dr Wally Witt (geological consultant); ARQ Consulting (geotechnical studies); HCV Africa (hydrology, borefield testing and modelling); Conrad Partners (transport and rare earth concentrate market); and Nagrom Laboratories (sample assays).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Pensana Metals, tel +61 8 92210090.