Name of the Project
Nolans neodymium-praseodymium (NdPr) project.

Location
Northern Territory, Australia.

Client
Arafura Resources.

Project Description
Nolans is one of the most advanced rare earths development projects globally. The Nolans Bore resource is rich in NdPr – the key rare earths used in high-strength permanent magnets.

The project has total mineral resources estimated at 56-million tonnes at 2.6% rare-earth oxides using a 1% cutoff grade.

The measured and indicated resources base has the potential to support mining and processing operations for at least 30 to 35 years at a design capacity of 14 000 t/y of total rare-earth oxides (TREO) equivalent.

Opencut mining will selectively target phosphate-rich material types, which comprise more than two-thirds of the deposit’s measured and indicated resource inventory. Arafura is planning to mine up to five-million tonnes a year to produce 650 000 t of run-of-mine ore as feed to a three-stage crushing circuit.

Crushed ore will initially be processed in a beneficiation plant that uses whole-of-ore flotation as the main unit of operation. Beneficiation reduces the mass for subsequent processing by about 50%.

The flotation concentrate will be pumped about 8 km through a slurry pipeline to an extraction plant.

Chemical processing at the extraction plant will use a phosphoric acid preleach process that leverages the phosphate-rich characteristics of the concentrate, resulting in the production of 110 000 t/y of merchant-grade (54%) phosphoric acid for sale to the fertiliser market.

Solid rare earth-bearing products from preleach will be subjected to several processes at the extraction plant, which involve baking, water leaching, precipitation, dissolution and purification. Output from the extraction plant will be 16 450 t/y of an NdPr-rich rare-earth chloride intermediate product, and a lower-value cerium oxide product.

The rare-earth chloride intermediate product will be further refined at an offshore separation plant into NdPr oxide, lanthanum oxide and a mixed middle-heavy rare-earth (SEG-HRE) carbonate. Production is estimated at 3 600 t/y of NdPr oxide, 2 660 t/y of lanthanum oxide and 660 t/y of SEG-HRE concentrate.

Arafura is assessing a site for the separation plant in the Saemangeum Free Economic Zone, in South Korea, in a potential joint venture with OCI Company.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value of A$2.045-billion after tax, with a 10% discount rate. It has an internal rate of return of 21.4% and an after-tax payback of capital in the fifth year of operation.

Value
Overall capital costs, including contingency, are estimated at A$1.43-billion.

Duration
Construction is expected to start in mid-2016 and production in early 2019.

Latest Developments
Arafura Resources has started a major geotechnical programme at its Nolans NdPr project to assess the location for critical site infrastructure.

About 70 to 80 shallow pits will be excavated, and six or seven geotechnical diamond-drill holes will be completed to a depth of 10 m to 20 m to gather information for a definitive feasibility study design of the Nolans process plant foundations, tailings impoundment dams, access roads and mine-site creek diversion.

The programme will be completed in two to three weeks and will also include hydrogeological drilling, and the installation of a permanent monitoring borehole that will provide information on groundwater.

Meanwhile, Arafura has completed the institutional component of its accelerated nonrenounceable one-for-four, pro-rata entitlement offer. The company will raise A$11.5-million to progress the development of the Nolans NdPr project by issuing an estimated 143.9-million new shares at a price of 8c each.

Nolans was granted federal environmental approval in May this year.

Final project construction and operating approvals will be obtained once the Northern Territory Department of Primary Industry and Resources issues a mining authorisation and approves the activities of the mining management plan.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Arafura Resources, tel +61 8 6210 7666, fax +61 8 9221 7966 or email media@arafuraresources.com.au.