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Syerston scandium project, Australia

30th September 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name of the Project
Syerston scandium project.

Location
New South Wales, Australia.

Client
Clean TeQ Holdings.

Project Description
Syerston is one of the world’s highest-grade and largest scandium deposits.

A feasibility study completed on the project has shown that the mine will have an average production of 49.2 t/y scandium oxide (Sc2O3), over an initial 20-year mine life.

The study is based on a processing plant with a designed capacity of 64 000 t/y of ore feed from Syerston’s near-surface resource.

The processing plant comprises a high-pressure acid leach circuit, followed by Clean TeQ’s proprietary resin-in-pulp technology for scandium recovery and purification.

Jobs to be Created
A labour study undertaken, as part of the PFS, has determined a steady-state operational manning requirement of 65 full-time equivalent roles, and contractors for maintenance and mining.

Net Present Value/Internal Rate of Return
Based on a long-term Sc2O3 (99.9% purity) price of $1 500/kg (A$2 000/kg) used in the feasibility study, the project delivers a post-tax net present value of A$273-million and post-tax internal rate of return of 33%.

Value
The scandium project is valued at $100-million.

Duration
The plant and infrastructure construction timeframe for the scandium project is estimated to be 18 months.

An 18-month commissioning and ramp-up period has been allowed, with design throughput and production capacity forecast to be achieved in Year 2 of the initial 20-year mine life.

Latest Developments
Clean TeQ is completing a prefeasibility study (PFS) to evaluate the potential for a large-scale nickel/cobalt project development at Syerston to produce nickel and cobalt sulphate products to supply growing demand from the lithium-ion battery (LiB) sector. The deposit geology is such that the scandium and nickel/cobalt projects have the potential to be developed independently.

This nickel/cobalt project will also have the potential to produce significant quantities of Sc2O3 as a by-product. Upon completion of the nickel/cobalt PFS, Clean TeQ will be able to compare the two possible development scenarios for Sc2O3 production from the small-scale, scandium-only project; and the potential large-scale nickel/cobalt project.

If the preferred development option is the construction of a large-scale nickel/cobalt project, Clean TeQ expects that the bulk of the engineering and design work completed in this scandium feasibility study can be incorporated directly into the larger project.

Clean TeQ has started discussions with several key participants in the LiB industry to assess potential demand for nickel and cobalt sulphate from the proposed Syerston nickel/cobalt project. These participants include precursor and cathode manufacturers, LiB cell and battery manufacturers and end-users of LiB batteries, as well as metals/chemicals traders.

To date, the company has received strong initial expressions of interest for the offtake of Syerston nickel sulphate/cobalt sulphate products. Work is under way for recommissioning the Clean TeQ pilot plant at the ALS facility within the next few months to produce samples for customer testing purposes.

Once the PFS for the nickel/cobalt project is completed, Clean TeQ will update shareholders on the proposed development scenario.

If the company opts to adopt the large-scale nickel/cobalt development scenario, it is expected that a nickel/cobalt feasibility study will be immediately initiated, with a target completion date early in the fourth quarter of 2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
CleanTeq Holdings, tel +61 3 9797 6700, fax +61 3 9706 or email Info@cleanteq.com.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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