The Conversation (2)
Search Minerals Inc. (TSXV:SMY) announced positive Preliminary Economic Assessment results on its Foxtrot Rare Earth Element Project.Â
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
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