Name and Location
Zandkopsdrift rare-earth element project, Northern Cape, South Africa.

Client
Frontier Rare Earths and Korea Resources (Kores).

Project Description
The Zandkopsdrift B zone has the biggest total rare-earth oxides grade and the highest grade of high-value heavy rare-earth oxides of significantly advanced rare-earth deposits outside China.

Envisioned is a standalone opencast mine, which will be mined by conventional free-dig and/or drill, blast and haul techniques, with minimal drilling and blasting required. The steady-state mining production target is one-million tons a year and the total separated rare-earth oxides target production rate is 20 000 t/y.

Infrastructure associated with the mine and process plant includes the upgrade of existing district roads from the surrounding towns to the mine.

The water supply to the mine will be provided by Frontier from demineralised water, piped 35 km from a desalination plant.

Turbogenerators will supply power using the on-site exothermic reactions within an on-site sulphuric acid production plant.

The desalination plant will be powered by diesel generators and the Saldanha separation plant will be supplied by State-owned power utility Eskom.

Value
$910-million, which includes capital expenditure requirements for the Zandkopsdrift mine, related infrastructure and services, land purchases, mine closure and rehabilitation provision, the upgrading of local district roads, the provision of the social and labour plan, as well as the Saldanha separation plant, with its related infrastructure and services.

Duration
Along with its strategic partner, Korea Resources Corporation, Frontier intends to start rare-earth production in 2016, with a target production capacity of 20 000 t/y of separated rare-earth oxides.

Latest Developments
Good progress has been made on the Zandkopsdrift prefeasibility study (PFS) since the update issued by Frontier in November 2012, with most of the studies required for the PFS now complete and several improvements to the flow sheet for the Zandkopsdrift processing plant (ZPP) identified.

The flow sheet has been revised accordingly and a confirmatory pilot scale metallurgical test programme, covering all major process steps was successfully completed in the first quarter of 2013, after which the ZPP flow sheet was ‘frozen’ for the purpose of the PFS.

The most significant remaining work required for the PFS is the finalisation of engineering design and the capital and operating cost estimates for the ZPP, which are under way and is scheduled for completion in July. Accordingly, the results of the PFS are expected to be announced in the third quarter of 2013.
With the preparation of the PFS at an advanced stage, planning has begun for the definitive feasibility study (DFS), which will start immediately after the PFS and is expected to take 9 to 12 months to complete.
Frontier is fully funded to complete the PFS and DFS on Zandkopsdrift from its existing cash resources. This would position Frontier as one of the first new major rare earths producers and one of the largest producers of separated rare earths outside China.

Key Contracts and Suppliers
Venmyn SNC-Lavalin (PEA), SGS Mineral Services (metallurgical flow sheet development), the MSA group (resource estimation), Sound Mining Solutions (mine design and schedule), Epoch Resources (design of tailings disposal facility) and SNC Lavalin (engineering design and capital operating cost estimates).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Frontier Rare Earths (South Africa), tel +27 21 446 6040 or email info@frontierrareearths.com.
SNC-Lavalin (South Africa), tel +27 11 535 4900 or fax +27 11 884 6363.
SGS Mineral Services, tel +41 22 739 91 11 or fax +41 22 739 9886.
MSA Group, tel +27 11 880 4209, fax +27 11 880 2184 or email info@msagroupservice.com.
Genalysis Laboratory, tel +27 11 552 8149, fax +27 11 552 8248 or email min.zaf.jhb@intertek.com.
Sound Mining Solutions, tel +27 11 23 7152, fax +27 11 234 8912 or email smsreception@soundmining.co.za.
Epoch Resources, tel +27 11 656 0380/+27 11 802 3657, fax +27 11 802 3654 or email projects@epochrespources.co.za.
Africa Geo-Environmental Services, Renaldo du Toit, cell +27 82 886 8436, fax +27 86 645 2239 or
email rdutoit@ages-group.com.
RCE Consultants, tel +949 453 0111, fax +949 453 0411.
EHL Consulting Engineers, tel +27 11 370 7400, fax +27 11 834 4203 or email info@ehl.co.za.
Kores, tel +82 2 840 5600 or email csmaster@kores.or.kr.