Name and Location
Lofdal rare earths project, Namibia.

Client
Namibia Rare Earths.

Project Description
The Lofdal project represents a unique opportunity for the development of a significant heavy rare earths supply outside of China.

Current National Instrument (NI) 43-101-compliant indicated resources are 5 594 t rare-earth oxides (REO), with 85.6% heavy rare earths enrichment and inferred resources of 4 180 t REO, with 85.1% heavy rare earths enrichment, all reported at a 0.3% total rare-earth oxides (TREO) cutoff grade.

The contained tonnage of REO can essentially double in both categories at a lower cutoff of 0.1% TREO.

Net Present Value/Internal Rate of Return
The project has a calculated net present value at a 10% discount rate, of $148-million and an internal rate of return of 42%.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
Namibia Rare Earths has started work on an environmental-impact assessment (EIA) for the Lofdal project, after selecting SLR Environmental Consulting to lead the study.

The company has focused its operations in Namibia on baseline environmental monitoring after releasing the preliminary economic assessment on November 14, 2014, to complete the EIA by the third quarter of 2016.

Namibia Rare Earths is working on continued metallurgical studies to improve concentrate grades and recoveries, as well as on modest geological field programmes to support future drilling to increase mineral resources.

Meanwhile, the company continues to evaluate qualified technical or financial partners to advance the development of Lofdal through to feasibility and mine development.

“Management and the board are cognisant of difficult market conditions and have undertaken steps to minimise administrative costs and overheads to ensure funding to support the approved project activities over the next 12 to 24 months,” the company has said.

Key Contracts and Suppliers
MDM Engineering Group (principal consultant), Mine Technics (pit optimisation, mine planning and operations), Swinden Geoscience (geological inputs) and Digby Wells Environmental (environmental management and planning).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Namibia Rare Earths, tel +1 902 835 8760, fax +1 902 835 8761 or email info@NamibiaREE.com.
MDM Engineering Group, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.
Swinden Geoscience, tel +1 902 444 3525, fax +1 902 444 7802 or email info@swindengeoscience.ca.
Digby Wells Environmental, tel +27 11 789-9495, +27 11 789-9498 or email info@digbywells.co.za.