Name of the Project
Nolans neodymium/praseodymium (NdPr) rare earths project.

Location
The project is located in the Northern Territory of Australia.

Project Owner/s
Arafura Resources.

Project Description
A definitive feasibility study (DFS) has confirmed Nolans as a globally significant and strategic NdPr project that, once developed, will become a major supplier of these critical raw materials to the high-performance, permanent-magnet market.

The project has ore reserves of 19.2-million tonnes at 3% total rare-earth oxides (TREO) and 13% phosphorous pentoxide.

The project will encompass a mine, a process plant and related infrastructure to be built and located at the Nolans site.

Mining will be conducted using typical drill-and-blast operations, hydraulic excavators and rear dump trucks. The strategic mining schedule is based on an average mining rate for the first seven years of 3.2-million tonnes a year, with average production for the duration of mining estimated at 7.6-million tonnes a year at a maximum rate of 11.2-million tonnes a year. Ore from the run-of-mine pad will be trucked 8.5 km to the process plant.

The beneficiation plant and associated equipment are designed to process a maximum of one-million tonnes a year of ore to cater for a variation in ore grade over the life-of-mine (LoM).

The process plant is designed for 300 000 t/y of concentrate, which relates to a nominal 13 343 t/y of TREO equivalent products, with a potential maximum of 14 100 t/y, depending on the mining schedule.

The project is expected to deliver 293 000 t/y of concentrate, producing 4 357 t/y of NdPr oxide,135 808 t/y of phosphorous acid and 13 343 t/y TREO over a 23-year LoM.

Potential Job Creation
The peak construction workforce is estimated at 650, with a steady-state operations workforce of 280 people.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of A$729-million and an internal rate of return of 17.43%, with an after-tax payback of five years.

Capital Expenditure
Preproduction costs have been estimated at A$1-billion.

Planned Start/End Date
Project design and construction will take 30 months to complete, with commissioning targeted for early to mid-2022.

Latest Developments
Arafura Resources will raise A$7-million from a share placement to institutional and professional investors to fund early engineering works for the prefront-end engineering design at the NdPr project.

The company has received firm commitments for the placement of about 112.9-million shares, at an issue price of 6.2c each, with the placement to be conducted under Arafura’s existing placement capacity.

The Nolans project is the only new NdPr oxide project in Australia with all the environmental approvals granted to supply advanced materials o the critical minerals supply chain.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Arafura Resources, tel +61 8 6210 7666 or email arafura@arultd.com.