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Search Minerals Inc. (TSXV:SMY) released an updated preliminary economic assessment (PEA) for its Labrador-based Foxtrot rare earths project. The new PEA looks at an “open pit-underground scenario with lower capital costs, a lower mining rate and higher grade processing facility feed.”
Search Minerals Inc. (TSXV:SMY) released an updated preliminary economic assessment (PEA) for its Labrador-based Foxtrot rare earths project. The new PEA looks at an “open pit-underground scenario with lower capital costs, a lower mining rate and higher grade processing facility feed.”
Economic and financial highlights are as follows:
- $152 million initial capital cost – includes $33 million contingency)
- $57 million underground mining capital (Year 8);
- $23 million sustaining and closure capital;
- $1.713 billion total net revenue
Operational highlights include:
- 1,000 tonnes per day processing rate
- Mine life: 14 years: 8 years open pit, 6 years underground
- $353 per tonne processing facility average unit revenue, net of pay factors and third party separation charges
- $238 per tonne processing facility average unit operating cost
- Feed grade-weighted average REE recovery of 76.8%;
- Total Life-of-Mine production of 44,129 tonnes of TREO, or 3,300 tonnes per year at peak production;
- Life-of-Mine production includes 7.095 million kg of neodymium oxide (Nd2O3), and 0.836 million kg of dysprosium oxide (Dy2O3).
- Revenue is recognized at the time of production
- Metallurgical process produces a dry stackable residue, for ease of disposal and eliminates risk associated with wet tailings pond.
Click here to read the full Search Minerals Inc. (TSXV:SMY) press release.