TSX-V-listed Namibia Critical Metals says the joint management committee (JMC) overseeing the Lofdal heavy rare earths project, in Namibia, has approved the next phase of work under the definitive feasibility study (DFS), including up to about C$11-million in additional project funding to advance completion of the study.

The company also announced the award of the first major metallurgical and geometallurgical contracts under the expanded DFS work programme to metallurgical testing and process development services provider SGS Canada (SGS).

In a media statement, the company says the approved programmes represent a significant advancement in the development of the Lofdal project and its transition into full DFS execution.

Collectively, the work will validate the complete processing flowsheet from run-of-mine ore through the production of separate light and heavy rare earth carbonate products, while generating the engineering and operating data required to support updated plant design and project financing.

A key objective of the expanded metallurgical programme is to demonstrate the production of higher-value intermediate rare earth products in Namibia.

Unlike conventional rare earth projects that export mineral concentrates for further processing, Namibia Critical Metals says the Lofdal programme will now evaluate the production of separate light rare earth carbonate (LREC) and heavy rare earth carbonate (HREC) products through integrated hydrometallurgical processing.

The company says these products represent a significant advancement in value addition within Namibia and establish the technical foundation for evaluating future downstream processing opportunities in-country.

The company says it believes this strategy aligns closely with the government of Namibia's objective of increasing domestic beneficiation of critical minerals while supporting industrial development, skills transfer and long-term economic value creation.

As one of the few advanced heavy rare earth projects offering an alternative source of supply, the company says Lofdal is uniquely positioned to contribute to diversified global supply chains for dysprosium, terbium, yttrium and other critical rare earth elements essential for electric vehicles, renewable-energy technologies, advanced electronics and defence applications.

"Today's announcement represents far more than the award of technical contracts.

“It marks the commencement of the next major execution phase of the Lofdal DFS for the expanded project Lofdal 2B-4 and reflects the continued commitment of Namibia Critical Metals, Japan Organisation for Metals and Energy Security and Toyota Tsusho to advancing one of the world's most strategically important heavy rare earth projects,” says Namibia Critical Metals president and CEO Darrin Campbell.

He notes that the approval of about C$11-million in additional DFS funding enables a comprehensive metallurgical development programme that will substantially derisk the processing component of the project while generating the engineering data required for detailed design and project financing.

Equally important, he says, these programmes move Lofdal beyond conventional mineral concentrate production toward higher-value mixed and separated rare earth products.

“This work supports Namibia's vision of developing downstream critical mineral industries while strengthening secure and diversified supply chains for Japan and other allied economies.

“SGS has been an outstanding technical partner throughout the advancement of Lofdal. We are pleased to continue working with one of the world's premier metallurgical organisations as we advance the project toward completion of the DFS."

Namibia Critical Metals says the metallurgical and geometallurgical programme to be undertaken by SGS comprises one of the most comprehensive metallurgical development campaigns undertaken on the Lofdal project and is expected to provide critical engineering and operating data required to complete the DFS for the expanded project.

About 30 t of representative ore will undergo continuous pilot-scale flotation testing to validate the processing flowsheet, optimise operating conditions and generate concentrate for downstream hydrometallurgical processing.

The programme includes variability testing, reagent optimisation, site water evaluation and environmental characterisation to support commercial plant design. The company says a continuous pilot plant will demonstrate the complete hydrometallurgical flowsheet, including acid bake, leaching, impurity removal, solvent extraction and precipitation.

The campaign is expected to produce mixed rare earth carbonate followed by separate LREC and HREC products, while generating engineering design criteria for commercial-scale processing facilities.

Laboratory and pilot-scale solvent extraction programmes will optimise the separation of light and heavy rare earth elements using the optimal reagent systems.

The work will establish operating parameters for the production of separate LREC and HREC products, while identifying opportunities to reduce reagent consumption and improve future operating economics.

Namibia Critical Metals explains that a comprehensive variability testing programme incorporating 98 representative samples from across the Lofdal deposit will refine geometallurgical domains and develop predictive processing models supporting mine planning, process optimisation and long-term operational forecasting.

The company says the programme is expected to validate pilot-scale flotation and hydrometallurgical performance; demonstrate production of separated light and heavy rare earth carbonate products; generate engineering design criteria for detailed process plant design; optimise recoveries, reagent consumption and operating costs; develop predictive geometallurgical models supporting mine planning; advance amendments to environmental and other permits; and substantially derisk the processing component of the Lofdal project ahead of completion of the DFS.