Name and Location
Ngualla rare earths project, Tanzania.

Client
Peak Resources.

Project Description
The Ngualla project has an estimated ore reserve of 20.7-million tonnes at 4.54% rare-earth oxides (REOs), comprising 18-million tonnes at 4.53% REO proved ore and 2.7-million tonnes at 4.62% REO probable ore, with an average life-of-mine waste:ore strip ratio of 2.23.

A prefeasibility study (PFS) has confirmed Ngualla to be an economically robust project, at a base case production rate of 10 000 t/y of separated high-purity REOs, with a 58-year mine life.

The PFS proposes using conventional openpit, load, haul and dump mining using a fleet of small-sized owner-operated earthmoving equipment comprising one 70 t excavator and four 40 t, six-wheel-drive articulated dump trucks.

The project includes a carbonatite quarry, which will produce about 108 000 t/y, which will be used as a neutralising agent for waste acid streams from the recovery process. A small carbonatite crushing and milling circuit is included in the capital estimates.

Primary infrastructure required for the development of the project includes a general administration building, accommodation and services infrastructure, mining facilities, a tailings storage facility, a power plant and a processing plant site. The high-purity separated REOs will be trucked to the deep-water Port of Dar es Salaam for export. An 80 km access road to site requires the road to be upgraded to an all-weather road.

Value
The underlying capital cost of the project has decreased by 24% from the revised scoping study completed in May 2013 to $282-million. Capital expenditure, including contingency, is $367-million and includes a separation plant to produce high-purity separated products.

Duration
Construction of Ngualla is expected to start at the beginning of 2016, with first product expected by July 2017.

Latest Developments
On September 29, 2014, Peak announced details of an estimated $25-million total funding agreement with Jersey-based Appian Natural Resources Fund.

On completion, the investment is expected to fully fund Peak and the Ngualla rare earths project through to the bankable feasibility study (BFS).

Following the introduction by Appian, the International Finance Corporation (IFC) is proposing to participate with Appian in the $25-million investment on a 20:80 pro rata basis, with the IFC and Appian contributing 20% and 80% respectively. The IFC board has given its approval for the investment to proceed.

The first $1 million of the bridge loan facility (BLF) was received in early October 2014.

All conditions precedent required for the second tranche of $2-million of the BLF have been met or extended, and the additional funds are expected to be received shortly.

Peak, Appian and the IFC continue to cooperate to complete the documentation for the principal transaction. This is at an advanced stage and is expected to be finalised before the end of January 2015.

Meanwhile, a series of key development programmes, which have the potential to further improve the Ngualla project’s attractive economics, are now under way.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Peak Resources, tel +61 8 9200 5360, fax +61 8 9226 3831 or email info@peakresources.com.au.