Name of the Project
Browns Range heavy earths pilot plant development project.

Location
Western Australia.

Client
Northern Minerals.

Project Description
The project has been separated into three development stages and enables Northern Minerals to test the process and market the mixed rare-earth carbonate product, then develop the project to bankable feasibility study (BFS) level and finally build the full-scale operation.

Stage 1 includes the construction of a three-year, 60 000 t/y pilot plant operation. It will comprise an opencut mining operation, with processing through a beneficiation and hydrometallurgical pilot plant to produce 49 000 kg/y dysprosium in 590 000 kg/y total rare-earth oxide (TREO) contained in a mixed rare-earth carbonate. This stage is important to derisk the operation by testing the process and improving the knowledge of grade control and the poject’s geology.

Stage 2 involves developing the project to BFS level, based on the definitive feasibility study completed in March 2015; and the results of the studies, announced on August 27, 2015, aimed at reducing mining costs, boosting production, producing a premium product and increasing the ore reserve.

The final stage involves building the project to full-scale production based on the successful outcomes of stages 1 and 2. Once at full-scale, the project will process 585 000 t/y to produce 279 000 kg of dysprosium contained within 3 098 000 kg/y TREO (before yttrium rejection) in a mixed rare-earth carbonate.

Potential Job Creation
The project is expected to create 50 construction jobs and 45 ongoing operational positions.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project has a capital cost of A$56-million.

Duration
Construction of Stage 1 is expected to take about nine months once product offtake and funding is in place.

Latest Developments
Northern Minerals has secured a further A$27-million in funding to progress the development of the Browns Range pilot plant and accelerate enhancement initiatives at the project.

The company has entered into a subscription agreement with NRE Industrial Group to raise A$25-million.

The subscription agreement will comprise four tranches, consisting of a total of 240.4-million shares priced at between 9c and 11c a share.

The first and the second tranches, consisting of an estimated 11.11-million shares each, will be issued under Northern Minerals' existing capacity, with the third and fourth tranches subject to shareholder approval.

Assuming that all four tranches are successfully placed, NRE will hold a 17.2% interest in Northern Minerals.

Meanwhile, Northern Minerals has also executed a A$2-million subscription agreement with a private sophisticated investor, which is taking up 22.22-million shares in the company, priced at 9c each.

Meanwhile, Northern Minerals has said that with Browns Range now in the commissioning phase and starting the production of mixed rare-earth carbonates, the company is investigating ways of enhancing the project to deliver better outcomes for shareholders.

The company has flagged the potential to increase production from its Browns Range pilot plant project at a capital cost of A$4-million through the addition of an ore sorter.

Key Contracts and Suppliers
MACA (bulk earthworks), Primero (turnkey solutions provider) and Sinosteel MECC (engineering, procurement and construction contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Northern Minerals, tel +61 8 9481 2344, fax +61 8 9481 5929 or email info@northernminerals.com.au.