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

Client
Frontier Rare Earths and Korea Resources Corporation (Kores).

Project Description
Zandkopsdrift has estimated proven and probable reserves of 41.12-million tonnes grading 1.92% total rare-earth oxides (TREOs).

The results of the prefeasibility study (PFS) completed on the project have indicated that the proposed development of Zandkopsdrift to produce a range of high-purity, separated rare earths is technically feasible and economically robust.

Further, the production of a saleable manganese sulphate by-product has been proven technically and economically feasible and has been incorporated into the process flowsheet and economic analysis of the PFS.

The project comprises three principal operational components:
• mining and processing activities at Zandkopsdrift to produce a mixed rare-earth hydroxide and a saleable manganese sulphate by-product;
• a dedicated seawater desalination plant, to be located 35 km from the mine to supply potable water to the mining and processing operations at Zandkopsdrift; and
• a rare earths separation plant with a 16 000 t/y TREOs capacity, to be located in the Saladanha Bay industrial development zone, about 300 km south from Zandkopsdrift.

The higher-grade Central zone at Zandkopsdrift, which generally contains mineralisation with a grade of more than 2.5% TREOs, has been selected as the target for mining operations during the first 20 years of production. Thereafter, mining operations will transition into the lower-grade Outer zone, which generally contains mineralisation with a grade of 1% to 1.5% TREOs.

The PFS has demonstrated that the Zandkopsdrift deposit can be economically mined as a conventional openpit operation, which will be undertaken in a series of four pushbacks resulting in a final pit of 880 m × 1 100 m.

The pit will be excavated in 6-m-high benches to an average depth of 66 m below surface. In three locations, the base of the pit will be further extended to 90 m below surface in three minipits to access additional high-grade material below the main pit base. Such an approach will allow for the extraction of the higher-grade Central zone material with a lower strip ratio early in the life-of-mine (LoM), ensuring significant economic benefit. It is envisioned that a contractor will undertake the mining operation using excavators and an articulated dump truck and loader fleet, a combination of excavation methods for weathered material, as well as drill-and-blast for more competent material. The mining operations are planned as a seven-day week, day-shift-only operation.

The mining cutoff grade is 0.9% TREO, with steady-state mining production of 500 000 t/y of ore for production of 8 000 t/y of TREOs in the first four years. Thereafter, one-million tonnes a year of ore will be produced for 16 000 t/y of TREOs for a total LoM of 45.5 years. The PFS estimates the total tonnage mined at 67.8-million tonnes, comprising 43.5-million tonnes of run-of-mine and 24.3-million tonnes of waste.

Frontier has made several significant changes and innovative improvements to the conventional sulphuric acid process, which has been widely used on a commercial basis for many years, during the PFS. The main improvement has been the replacement of kilns, which are used in the conventional sulphuric acid cracking process, with fluidised bed reactors.

The combined effect of these improvements is that Zandskopdrift ore is expected to be processed in an efficient, cost-effective and robust metallurgical process.

Frontier has applied for patent protection for these key process improvements, as many of these improvements could be applied to other rare-earth deposits that use an acid-based cracking process.

Net Present Value/Internal Rate of Return
The project has a net present value, at a discount rate of 8%, of $2.98-billion and an internal rate of return of 30%, after tax and royalties.

Value
The PFS estimates capital expenditure for Phase 1 at $809-million, excluding contingency, which includes the Zandkopsdrift mine ($523-miliion), the manganese sulphate plant ($38-million) and the Saldanha separation plant ($238-million).

Phase 2 capital expenditure is estimated at $645-million, excluding contingency, which is planned to be financed from

Phase 1 operating cash flows and is, therefore, not expected to require additional external financing.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Frontier Rare Earths (Luxembourg), tel +352 208 80249 or email ir@frontierrareearths.com.