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TORONTO (miningweekly.com) – TSX-listed Namibia Rare Earths (NRE) has started work on a preliminary economic assessment (PEA) on the Area 4 heavy rare earth deposit at it flagship Lofdal project, located in north-western Namibia.
South Africa-based MDM Engineering is the main consultant, tasked with compiling the report that will provide an economic analysis of the potential viability of the current resources at Lofdal.
The Halifax, Nova Scotia-headquartered company reported that ongoing metallurgical testwork had achieved increased recoveries and upgrades, indicating that the targeted mineral concentrate grade of 20% total rare-earth oxides (TREO) can be attained from a low-grade feed of 0.3% TREO.
Lofdal represents a unique opportunity for the development of a significant heavy rare-earth element supply outside of China.
Mine Technics of Australia would assist MDM Engineering with pit optimisation studies, mine planning and operations, Swinden Geoscience of Canada with geological inputs, and Digby Wells Environmental of South Africa with environmental management and planning.
The PEA, slated to be complete before the end of the third quarter, would use the Canadian National Instrument 43-101-compliant resource completed in 2012 by the MSA Group.
Lofdal has an indicated resource at a cutoff of 0.3% TREO of 900 000 t grading 0.62% TREO, with 86% heavy rare-earth enrichment (HREE); and an inferred resource of 750 000 t grading 0.56% TREO, with 85% HREE. The resource was drilled to a depth of 150 m and remained open at depth and along strike.
At a low-grade cutoff of 0.1% TREO, the resource estimate provided for 2.88-million tons grading 0.32% TREO, with 76% HREE in the indicated category, and 3.28-million tons grading 0.27% TREO, with 75% HREE in the inferred category.
The company said it was still studying the most appropriate cutoff grade.
As a result of this significant progress, the NRE announced that it had engaged the services of Cutfield Freeman & Co as a financial adviser to assist in exploring strategic options to maximise the shareholder value of its Lofdal asset.