Name and Location
Panda Hill niobium project, Tanzania.

Client
Cradle Resources.

Project Description
The scoping study completed on the Panda Hill project has indicated the potential for a highly economic project, generating substantial cash flow at current niobium prices for a relatively low capital outlay. The mineral resource estimate used for the study totalled 81.8-million tonnes at 0.52% niobium pentoxide (Nb₂O₅) for 423 000 t of contained Nb₂O₅, with 76.4-million tonnes at 0.51% Nb₂O₅ of inferred material and 5.4-million tonnes at 0.62% Nb₂O₅ of indicated material.

The base case of the scoping study envisages a two-million-tonne-a-year operation, with a life-of-mine of about 28 years, producing about 4.8-million kilograms of niobium a year, based on a mine schedule that prioritises the indicated resource for plant feed.

A staged development, which will increase the mill throughput from an initial one-million tonnes a year to 2.3-million tonnes a year, could deliver between 2.6-million and 5.4-million kilograms of niobium a year over a 27-year mine life.

Value
The base case is estimated at $185-million.

The staged case will cost about $125-million to develop.

Duration
Not stated.

Latest Developments
Cradle Resources has launched a prefeasibility study (PFS) at its Panda Hill project and hopes to complete it during the first quarter of 2015.

The junior will also undertake extensive drilling activities at the project, with the first phase of the drilling programme comprising an estimated 78 holes, with 8 100 m being drilled.

A second phase of drilling is also planned for later this year.

The results will culminate in a PFS.

In June this year, Cradle reached an agreement with Africa-focused Tremont, under which Tremont would earn a 50% interest in the Panda Hill project by investing about $20-million.

The definitive feasibility study for Panda Hill would likely be completed once Tremont has invested $15-million.

Key Contracts and Suppliers
MDM Engineering Group (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Cradle Resources, tel +61 8 9389 2000, fax +61 8 9389 2099 or email admin@cradleresources.com.au.
MDM Engineering Group, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.