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Search Minerals Announces Positive Preliminary Economic Assessment of Foxtrot REE Project
VANCOUVER, May 1, 2012 /CNW/ - Search Minerals Inc. ("Search" or the "Company") (TSXV: SMY...
About this update from Search Minerals Inc.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, May 1, 2012 /CNW/ - Search Minerals Inc. (\"Search\" or the \"Company\") (TSXV: SMY) is announcing positive results of the Preliminary Economic Assessment\n (\"PEA\") on its Foxtrot Rare Earth Element Project (\"Foxtrot Project\"). \n The PEA was prepared by Roscoe Postle Associates Inc. (RPA), and\n demonstrates that the Foxtrot Project has robust economics and\n excellent potential to become a profitable producer of Rare Earth\n Elements (\"REE\") outside of China.  Highlights of the PEA are\n summarized below:\n\n\nOperational Highlights:\n\n\n4,000 tpd open pit operation\n\n\nMine Life: 10 years\n\n\nProposed production of 14.3 Mt, at a grade of 0.58% Total REE, based on\n the initial mineral resource estimate disclosed in February, 2012\n\n\nProcessing by gravity, magnetic separation, and flotation concentration,\n followed by acid leaching, producing a mixed rare earth carbonate\n concentrate\n\n\nAverage REE recovery of 79%\n\n\nTotal Life-of-Mine production of 66 million kg of total REE, or 6,700\n tonnes per year\n\n\nLife-of-Mine production includes 10.3 million kg of neodymium oxide (Nd2O3), and 1.4 million kg of dysprosium oxide (Dy2O3)\n\n\nFinancial Highlights:\n\n\n$408 million pre-tax Net Present Value (NPV) (at a 10% discount rate)\n\n\n29% pre-tax Internal Rate of Return (IRR)\n\n\n$1.1 billion pre-tax, undiscounted cash flow\n\n\n$3.0 billion total net revenue\n\n\nPre-tax payback period of 2.8 years\n\n\n$469 million initial capital cost\n\n\n$96 per tonne average unit operating cost\n\n\nNote: The PEA is preliminary in nature. It includes inferred mineral\n resources, which are considered too speculative geologically to have\n the economic considerations applied to them that would enable their\n categorization as mineral reserves. Mineral resources which are not\n mineral reserves do not have demonstrated economic viability. There is\n no certainty that the PEA forecast will be realized.\n\n\nThe Foxtrot Project shows significant upside potential.\n\n\nIncreased resources are expected from Phase III drilling results,\n extending mineralization at depth.\n\n\nTest work shows significant quantities of zirconium and niobium in the\n flotation concentrate - further work may identify a means of extracting\n them as saleable products.\n\n\nSeveral other REE-Zr-Y-Nb prospects, with ...