Name and Location
Panda Hill niobium project, Tanzania.

Client
Cradle Resources.

Tremont Investments has increased its shareholding in the Panda Hill niobium project, in Tanzania, to 37.5%, Cradle has indicated.

Tremont has invested $5-million to acquire a further 12.5% stake in the project, bringing its investment in the Panda Hill project to date to $10-million.

Cradle says the investment has been made to derisk the project through an infill and extensional drilling programme, extensive metallurgical work and a prefeasibility study (PFS).

Tremont is expected to complete a feasibility study by the fourth quarter of this year, after which a decision to mine will be made.

Tremont has the right to contribute a further $5-million investment to the project to take its ultimate stake in the Panda Hill project to 50%.

Project Description
The prefeasibility study (PFS) completed on the Panda Hill project has confirmed a world-class niobium resource with excellent metallurgical recoveries.

The base case for the PFS is premised on an openpit mining operation, providing two-million tonnes a year of mill feed over a 30-year life-of-mine.

This is the same scale of operation that was considered in the scoping study and approximates to 8% to 10% of world production.

For this reason, and to simplify financing arrangements, the definitive feasibility study (DFS) will be scoped to achieve a more modest entry into the market, starting with a throughput of one-million tonnes a year.

The DFS will allow for production expansion as demand grows.

In the early years of production, the successive pit cutbacks will target the high-grade Angel zone, with further expansion targeting the medium-grade, but high-recovery, fresh sovite mineralisation to the north.

As the Panda Hill mineralisation is a relatively clean material with low levels of impurities, particularly uranium, tantalum and titanium, and a well-liberated mineralisation at coarse grind, a single-stage flotation method can be used to process the niobium ore.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 10% discount rate, of $470-million and an internal rate of return of 56%, with a payback of 1.5 years.

Value
The capital required for a two-million-tonne-a-year plant is estimated at $158-million, excluding preproduction and working capital costs.

This includes a 13% overall contingency.

Duration
Not stated.

Latest Developments
The feasibility study on the Panda Hill project is considering the option of staging of production in such a way that, in the early years, a more capital efficient mining operation can be built that will target 5 000 t/y of ferroniobium. The plant will then be expanded in subsequent years to achieve an increased production profile to supply the growing ferroniobium market.

Key Contracts and Suppliers
SGS Canada (piloting of the milling and flotation circuit).

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.