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

Location
Western Australia.

Project Owner/s
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 on 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.

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

Planned Start/End Date
Construction of Stage 1 is expected to take about nine months once product offtake and funding are in place.

Latest Developments
Northern Minerals has announced plans to raise A$30-million to ramp up ore sorting, product separation and exploration initiatives at its Browns Range project.

Northern Minerals will issue more than 483.8-million shares, at a price of 6.2c each, to sophisticated and institutional investors, with the private placement to be split into three tranches.

The first 158.7-million shares will be placed before July 23 to raise an initial A$9.8-million under the company’s existing placement capacity, with 59-million of the 161.2-million shares to be issued under the second tranche also issued under existing capacity.

The second tranche will raise an additional A$10-million by August 9, with the third tranche of 163.8-million shares expected to raise an additional A$10.1-million before the end of August.

Northern Minerals has also approved the expansion of project enhancements at Browns Range, in response to significantly increased levels of interest in the company and the project from several parties, including potential customers and investors.

The company previously identified ore sorting as a potential game changer for the Browns Range project, with initial testwork indicating the potential to double the feed grade going into the plant.

The front-end engineering and design for the ore-sorter system has started, with the selection of the ore sorter to be made in due course, and targeted for operation by mid-2020.

Meanwhile, the current pilot plant at Browns Range produces a mixed heavy rare-earth carbonate, which requires downstream processing in China to separate into individual higher value rare-earth oxides.

To capture additional margin and transact directly with end-users, Northern Minerals is planning to investigate the potential for additional separation technology to its existing processing capabilities.

The testwork will initially be conducted overseas, as there is no heavy rare earth separation technologies operational in Australia, but if the technology investigation proves successful, Northern Minerals will consider incorporating the technology at its plant.

In addition to the expansions at Browns Range, Northern Minerals will also expand exploration at the project to potentially extend the mine life.

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.