Name and Location
Panda Hill niobium project, Tanzania.

Client
Cradle Resources.

Project Description
The scoping study completed on the Panda Hill project has indicated the potential for a highly economic project, generating substantial cash flow at current niobium prices for a relatively low capital outlay. The mineral resource estimate used for the study totalled 81.8-million tonnes at 0.52% niobium pentoxide (Nb₂O₅) for 423 000 t of contained Nb₂O₅, with 76.4-million tonnes at 0.51% Nb₂O₅ of inferred material and 5.4-million tonnes at 0.62% Nb₂O₅ of indicated material.

The base case of the scoping study envisages a two-million-tonne-a-year operation, with a life-of-mine of about 28 years, producing about 4.8-million kilograms of niobium a year, based on a mine schedule that prioritises the indicated resource for plant feed.

A staged development, which will increase the mill throughput from an initial one-million tonnes a year to 2.3-million tonnes a year, could deliver between 2.6-million and 5.4-million kilograms of niobium a year over a 27-year mine life.

Value
The base case is estimated at $185-million.

The staged case will cost about $125-million to develop.

Duration
Not stated.

Latest Developments
Tremont Investments has acquired another 12.5% interest in Cradle’s Panda Hill niobium project, for $5-million, increasing Tremont’s stake in the project to 25%.

The investment by Tremont forms part of a $20-million investment arrangement, signed in June this year, under which Tremont will earn a 50% interest in the Panda Hill project.

Tremont initially invested $5-million in June this year, which was used to de-risk the project through an infill and extensional drilling programme, as well as with metallurgical testwork, which resulted in the discovery of the high-grade Angel zone, which is now the target for further infill drilling.

Two reverse circulation rigs and a diamond drilling rig have been mobilised to site for an initial 7 000 m infill and extension drilling programme focused on the Angel zone, and the additional drilling is expected to be completed within a few months.

A prefeasibility study (PFS) on the Panda Hill project is expected by March next year, and will likely be completed once Tremont has invested $15-million.

Key Contracts and Suppliers
MDM Engineering Group (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Cradle Resources, tel +61 8 9389 2000, fax +61 8 9389 2099 or email admin@cradleresources.com.au.
MDM Engineering Group, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.