Business
Namibia Rare Earths Files 43-101 Preliminary Economic Assessment Report for Heavy Rare Earth Mine at Lofdal
Capital costs of US$163M for 2,500 tpd open pit mine Annual production of 1,500 t ...
About this update from Namibia Critical Metals Inc.
[{"type":"text","content":"\n\n\nCapital costs of US$163M for 2,500 tpd open pit mine \nAnnual production of 1,500 t REO over 7 year LOM \nAfter tax cumulative cash flow of US$259M \nAfter tax NPV10% of US$148M \nAfter tax IRR of 42% with payback in 1.7 years \nRecommended to move to prefeasibility stage and extend LOM\n\n\nHALIFAX, Nov. 14, 2014 /CNW/ - Namibia Rare Earths Inc. (\"Namibia Rare Earths\" or the \"Company\") (TSX: NRE) (OTCQX: NMREF) is pleased to announce that it has filed a National Instrument 43-101 (\"NI 43-101\") technical report titled \"Preliminary Economic Assessment on the Lofdal Rare Earths Project Namibia\" (the \"PEA\"). The effective date of the PEA is October 1, 2014. The MDM Group is the principal author of the PEA under the supervision of David S. Dodd, B. Sc (Hon) FSAIMM. Other contributing authors were  Peter Roy Siegfried, MAusIMM (CP Geology) and Michael R. Hall, B.Sc (Hons), MBA, MAusIMM, Pr.Sci.Nat, MGSSA both of the MSA Group and Patrick Hannon, M.A.SC., P. Eng. and William Douglas Roy, M.A.Sc., P.Eng. both of MineTech International Limited. The PEA has been filed on SEDAR (www.sedar.com). \n\nThe PEA concludes that the Project currently has the potential to produce an average of 1,500 tonnes per annum of separated rare earth oxides (\"REO\") which would generate after tax cumulative cash flow of US$259M with a net present value10% (\"NPV\") of US$148M and an internal rate of return (\"IRR\") of 42%. The PEA indicates that there is considerable potential to expand the current mineral resource and recommends that additional drilling be carried out to provide for an extended mine life in conjunction with a six month Prefeasibility Study (\"PFS\") program.  Financial sensitivities of the Project are summarized in Table 1, financial highlights in Table 2, mineral resource estimates in Table 3, capital costs in Table 4, operating costs in Table 5 and REO pricing in Table 6. \n\n\n\n\nTABLE 1 - Financial Sensitivities Summary\n\n\n\n\n\n\n\nDiscount Rate\n\n\nPre-Tax NPV\n\n\nAfter Tax NPV\n\n\n\n(%)\n\n\n(US$)\n\n\n(US$)\n\n\n\n8\n\n\n266,192,000\n\n\n166,143,000\n\n\n\n10\n\n\n240,034,000\n\n\n148,338,000\n\n\n\n12\n\n\n216,429,000\n\n\n132,197,000\n\n\n\n\n\n\n\n\nPre-Tax\n\n\nAfter Tax\n\n\n\nIRR (%)\n\n\n53\n\n\n42\n\n\n\nCumulative Cash\n\n\n\n\n\nFlow (US$)\n\n\n404,714,000\n\n\n259,321,000\n\n \n\n\n\...