Peak announces Ngualla optimisation study results

28th August 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed rare earths developer Peak Resources has flagged improved economics at its planned Ngualla project, in Tanzania, on the back of a process optimisation study.

The company on Monday told shareholders that the process optimisation study had increased production from the 28 300 t/y of mineral concentrate considered in the bankable feasibility study (BFS), to 32 700 t/y.

While the mine life at Ngualla reduced from 31 years to 26 years, operating margins have improved by 20% from $145-million a year to $174-million a year, while unit operating costs reduced by 5.7% from $34.20/kg to $32.24/kg.

The post tax and royalty net present value and internal rate of return have increased from a respective $445-million and 21%, to $579-million and 24%.

“This is an outstanding outcome by the Peak team that drives Ngualla’s already low unit costs even lower and delivers a large increase in operating margin, reinforcing Ngualla as the leading development project for neodymium and praseodymium (NdPr),” said Peak MD Darren Townsend.

“The more than 100% increase in NdPr prices this year, combined with these significant operating improvements support our main focus now, which is to progress a mining licence application in order to fast-track Ngualla towards production in time for the increased demand for NdPr from electric vehicles.”

Meanwhile, capital costs for the proposed project have increased from the $356-million considered in the BFS to $365-million, while average operating costs increased from $83-million to $91-million.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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