Search Minerals: Positive Preliminary Economic Assessment of Foxtrot REE Project

Rare Earth Investing

Search Minerals Inc. (TSXV:SMY) announced positive Preliminary Economic Assessment results on its Foxtrot Rare Earth Element Project. 

Search Minerals Inc. (TSXV:SMY) announced positive Preliminary Economic Assessment results on its Foxtrot Rare Earth Element Project.

As quoted in the press release:

Operational Highlights:

  • 4,000 tpd open pit operation
  • Mine Life: 10 years
  • Proposed production of 14.3 Mt, at a grade of 0.58% Total REE, based on the initial mineral resource estimate disclosed in February, 2012
  • Processing by gravity, magnetic separation, and flotation concentration, followed by acid leaching, producing a mixed rare earth carbonate concentrate
  • Average REE recovery of 79%
  • Total Life-of-Mine production of 66 million kg of total REE, or 6,700 tonnes per year
  • Life-of-Mine production includes 10.3 million kg of neodymium oxide (Nd2O3), and 1.4 million kg of dysprosium oxide (Dy2O3)

Financial Highlights:

  • $408 million pre-tax Net Present Value (NPV) (at a 10% discount rate)
  • 29% pre-tax Internal Rate of Return (IRR)
  • $1.1 billion pre-tax, undiscounted cash flow
  • $3.0 billion total net revenue
  • Pre-tax payback period of 2.8 years
  • $469 million initial capital cost
  • $96 per tonne average unit operating cost

The Foxtrot Project shows significant upside potential.

  • Increased resources are expected from Phase III drilling results, extending mineralization at depth.
  • Test work shows significant quantities of zirconium and niobium in the flotation concentrate – further work may identify a means of extracting them as saleable products.
  • Several other REE-Zr-Y-Nb prospects, with similar geology and mineralization, occur in the Fox Harbour area; two of these, Fox Pond and Foxy Lady, exhibit similar grades of mineralization.

Click here to read the Search Minerals Inc. (TSXV:SMY) press release
Click here to see the Search Minerals Inc. (TSXV:SMY) profile.

mine lifetsxv:smyphase iii
The Conversation (2)
Gary Lewis
Gary Lewis
04 May, 2012
search minerals will define a 10 billion dollar deposit this will be a result of the increase tonnage from their released drilling. these guy have one of the best deposits on the planet. the key is they have a deposit on ice free tide water with all the infrastructure the deposit runs along a government maintained hgw , with a gov airstrip within 10 minutes and on a ice free port Fox Hr is an old American Radar Base Another key point is they will be able to operate a cheap open pit what has not been considered is that hey can have duel access ramps that can be lower as they deepen the pit This can be done as the decline ramps they will be extended and could run along the mineralized unite of rock this will mean as you lower the ramp you will be making Ore and then reducing the amount of waste rock they also have several other high grade prospects that could increase head grade. i predict the will have a possible profit of 1 Billion $. I could go on and on but their will only be a few producer and Search could be it. I would like to see Vale do a JV here so they can make a move on the REE market.
Gary Lewis
Gary Lewis
04 May, 2012
search minerals will define a 10 billion dollar deposit this will be a result of the increase tonnage from their released drilling. these guy have one of the best deposits on the planet. the key is they have a deposit on ice free tide water with all the infrastructure the deposit runs along a government maintained hgw , with a gov airstrip within 10 minutes and on a ice free port Fox Hr is an old American Radar Base Another key point is they will be able to operate a cheap open pit what has not been considered is that hey can have duel access ramps that can be lower as they deepen the pit This can be done as the decline ramps they will be extended and could run along the mineralized unite of rock this will mean as you lower the ramp you will be making Ore and then reducing the amount of waste rock they also have several other high grade prospects that could increase head grade. i predict the will have a possible profit of 1 Billion $. I could go on and on but their will only be a few producer and Search could be it. I would like to see Vale do a JV here so they can make a move on the REE market.

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