Business
Search Minerals Announces Enhanced Economics in Revised Preliminary Economic Assessment of Foxtrot REE Project
VANCOUVER, March 25, 2013 /CNW/ - Search Minerals Inc. ("Search" or the "Company") (TSX Vent...
About this update from Search Minerals Inc.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, March 25, 2013 /CNW/ - Search Minerals Inc. (\"Search\" or the \"Company\") (TSX Venture: SMY) is pleased to announce the results of a revised Preliminary Economic\n Assessment (\"PEA\") on its Foxtrot Rare Earth Element Project (\"Foxtrot\n Project\"). This PEA evaluates an open pit-underground scenario with\n lower capital costs, a lower mining rate and higher grade mill feed.\n The revised PEA was prepared by Roscoe Postle Associates Inc. (\"RPA\")\n and is compliant with National Instrument 43-101 (\"NI 43-101\"). It\n reconfirms that the Foxtrot Project has robust economics and excellent\n potential to become a profitable producer of Rare Earth Elements\n (\"REE\"), particularly Dy, Tb and Nd, outside of China.\n\n\nHIGHLIGHTS:\n\n\n\nSelective mining of High Grade Core REE material from an initial 4 year\n open pit followed by a 6year selective underground mining operation,\n with a 1,500 tpd mining mill rate.\n\n\nReduction in capital costs to $ 221M from $ 469M, with a 3.8 year\n payback, $ 219M NPV (at a discount rate of 10%) and 27% pre-tax IRR\n\n\nNet revenue has increased $ 110/tonne milled and Opex costs increased $\n 38/tonne, for a net increase in revenue per tonne of $ 72; this\n increased margin will help protect Search from commodity price\n fluctuations\n\n\nThe updated PEA scenario also provides for a smaller environmental\n footprint (i.e., smaller open pit, smaller waste dump and smaller\n tailings pond) and good potential for extended mine life.\n\n\nThe revised project will focus on higher grade REE material mined over\n LOM of 0.89% total REE (\"TREE\") on average, which compares to the 0.58%\n TREE on average for the original bulk open pit concept\n\n\n\nJim Clucas, President of Search Minerals, stated: \"We are pleased with\n the results of the revised PEA as it reinforces our view of Foxtrot as\n an exceptional project that can be developed.  The Foxtrot Project is\n the cornerstone of our Rare Earth strategy, as it is the first project\n of what we believe will be many in this district, which Search\n controls. The smaller scale mining concept is more attractive and\n achievable with respect to project financing and development without\n affecting economic returns in a difficult market. The need to originate\n new sources of neodymium and dysprosium, given their tight fun...