Peak cuts costs at rare earths project
SYDNEY (miningweekly.com) – A revised scoping study for ASX-listed Peak Resources’ Ngualla rare earths project, in Tanzania, has delivered a reduction in both operating and capital costs.
Estimated operating costs have deceased by 8% to A$10.18/kg of rare-earth oxides, while projected capital costs have decreased by 7%, from $400-million to $373-million.
The project’s mine life has also doubled, from 25 years to about 50 years, while the average life-of-mine grade has also increased by 4.35%, to 5.80% rare-earth oxide.
The company pointed out that the enhanced results delivered an improved net present value (NPV) and internal rate of return (IRR) of $1.78-billion and 60%, respectively, on the 10 000 t/y base scenario case, while the option to double production rates to 20 000 t/y would deliver a NPV of $3.8-billion tons and an IRR of 77%.
“This update to the scoping study and preliminary economic assessment quantifies the excellent results achieved from the improved resource model and beneficiation testwork released in April this year,” said Peak executive chairperson Alastair Hunter.
“The upgrade further confirms Ngualla’s position as a low-cost operation, with the lowest capital requirement of all emerging rare-earth producers.”
The revised scoping study followed an improved mineral resource estimate, with infill drilling increasing the average grade and the amount of weathered mineralisation in the Bastnaesite zone.
Hunter said on Wednesday that work on the preliminary feasibility study was progressing and scheduled for completion in 2013. The preliminary study was also focused on making additional improvements to the project, which would translate into further savings in both operating and capital costs.
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