Namibia Rare Earths Releases PEA for Lofdal

Namibia Rare Earths (TSX:NRE,OTCQX:NMREF) reported results of a preliminary economic assessment for its Lofdal Rare Earths Project in Namibia. Results show that the project boasts an after tax IRR of 43 percent with a 1.7 year payback period.

As quoted in the press release:

The 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$257M with a net present value10% (“NPV”) of US$147M and an internal rate of return (“IRR”) of 43%. 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.

Namibia Rare Earths President, Donald Burton, said:

This Preliminary Economic Assessment provides shareholders and investors with the first indications of the economic potential of Lofdal. The PEA confirms the strengths of the Project in terms of its favourable rare earth distribution and amenability to conventional mining and processing, and demonstrates its financial strengths in terms of the low capital costs and significant cash flows. The PEA provides a clear path forward for development of the Project. Management believes that there remains considerable upside to the Project as we move towards prefeasibility and feasibility studies. Together with on-going metallurgical optimizations, we will target additional drilling to significantly expand mineral resources and to establish mineable reserves thereby extending the life of mine. The Company will aggressively pursue the most expeditious path towards development of Lofdal through all available options.

Click here to read the Namibia Rare Earths (TSX:NRE,OTCQX:NMREF) press release