Mineral Resource company Pensana Metals Ltd (ASX: PM8) has today announced the appointment of international engineer Wood Group to execute a Preliminary Feasibility Study (PFS) for the expedited development of the Longonjo NdPr Project.
The appointment will see Wood Group investigating an opportunity to fast track the Longonjo NdPr Project into production under the Preliminary Feasibility Study. The study aims to deliver a low capital cost open pit mining operation and exporting flotation concentrates to customers in China via the recently upgraded Benguela rail line port of Lobito.
Pensana Metals’ Chief Operating Officer, Dave Hammond, stated “Last month’s substantially increased Mineral Resource estimate has enabled the company to bring forward the PFS. The company look forward at a low capital cost, shallow open pit and flotation operation producing a high?grade concentrate for export to China via the adjacent major rail and port infrastructure.”
The company’s decision to expedite the development studies comes after a large, high-grade Mineral Resource estimate was completed for the company’s 84% owned Longonjo NdPr Project in Angola. Wood Group has also undertaken the Scoping Study for Longonjo and has an experienced rare earth mining and development team.
As per the company’s information, the PFS base case for the initial development will consist of a shallow open pit mine and flotation plant on site, taking advantage of the modern rail and port infrastructure already in place on the projects doorstep. The Chinese built US $1.8 billion Benguela rail line is located just 4 the project and runs directly to the Atlantic port at Lobito, linking the project to customers in China.
Pensana has already started the discussion with potential financiers, and it is expected that a financing package will be finalised to coincide with the completion of the PFS, scheduled for September 2019. The company believes that the completion of a favourable PFS would lead to Front End Engineering Design (FEED) and Engineering Procurement Construction Management (EPCM).
Mr Hammond added that “Pensana aims to get into production and build its customer base at a time when electric vehicle and wind turbine manufacturers are driving the increasing demand for NdPr magnets for electric motors and Chinese rare earth processors are looking for additional low?cost feedstock.”
Initial development studies will focus on the highest grade and quality portion of the Mineral Resource estimate like zone mineralisation that consists of a thick blanket of soft, friable NdPr mineralisation that occurs over an area of approximately 700 x 700 metres to typical depths of 20 metres. The high-grade weathered zone subset reportedly represents less than 10% of the total Mineral Resource estimate and at a 0.65% NdPr lower cut off includes 22.9 million tonnes at 4.16% REO including 0.86% NdPr containing 953,000 tonnes REO including 197,000 tonnes of NdPr, told Pensana.
PM8 last traded at $0.019 with the market capitalisation of $23.03 million as at 14 March 2019. Over the past 12 months, the stock has witnessed a negative price change of 9.52% despite the massive surge of 26.67% in the past three months.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.