Business
Preliminary economic assessment confirms potential for Heavy Rare Earth mine at Lofdal
Capital costs of US$156M for 2,500 tpd open pit mine Annual production of 1,500 ...
About this update from Namibia Critical Metals Inc.
[{"type":"text","content":"\n\n\n\nCapital costs of US$156M for 2,500 tpd open pit mine\n\n\nAnnual production of 1,500 t REO over 7 year LOM\n\n\nAfter tax cumulative cash flow of US$257M \n\n\nAfter tax NPV10% of US$147M \n\n\nAfter tax IRR of 43% with payback in 1.7 years\n\n\nRecommended to move to prefeasibility stage and extend LOM\n\n\n\nHALIFAX, Oct. 1, 2014 /CNW/ - Namibia Rare Earths Inc. (\"Namibia Rare\n Earths\" or the \"Company\") (TSX:NRE) (OTCQX:NMREF) is pleased to report\n the positive results of the NI 43-101 compliant Preliminary Economic Assessment on the Lofdal Rare Earths Project,\n Namibia (\"the PEA\") which confirms the technical and economic potential of the\n Lofdal Heavy Rare Earth Project (\"Project\") in northwestern Namibia.\n\n\nThe PEA concludes that the Project currently has the potential to\n produce an average of 1,500 tonnes per annum of separated rare earth\n oxides (\"REO\") which would generate after tax cumulative cash flow of\n US$257M with a net present value10% (\"NPV\") of US$147M and an internal rate of return (\"IRR\") of 43%. The\n PEA indicates that there is considerable potential to expand the\n current mineral resource and recommends that additional drilling be\n carried out to provide for an extended mine life in conjunction with a\n six month Prefeasibility Study (\"PFS\") program. Financial sensitivities\n of the Project are summarized in Table 1, financial highlights in Table\n 2, mineral resource estimates in Table 3, capital costs in Table 4,\n operating costs in Table 5 and REO pricing in Table 6.\n\n\nDonald Burton, President of Namibia Rare Earths stated \"This Preliminary Economic Assessment provides shareholders and\n investors with the first indications of the economic potential of\n Lofdal. The PEA confirms the strengths of the Project in terms of its\n favourable rare earth distribution and amenability to conventional\n mining and processing, and demonstrates its financial strengths in\n terms of the low capital costs and significant cash flows. The PEA\n provides a clear path forward for development of the Project.\n Management believes that there remains considerable upside to the\n Project as we move towards prefeasibility and feasibility studies.\n Together with on-going metallurgical optimizations, we will target\n additional drilling to significantly expand mineral resources and to\n ...