Pre-Feasibility Study at Yangibana REE Project

RNS Number : 6614U

Rare Earth Minerals PLC

08 April 2016

 

Rare Earth Minerals Plc

("Rare Earth Minerals", "REM" or "the Company")

Pre-Feasibility Study at the Yangibana Rare Earth Element Project.

Rare Earth Minerals Plc (AIM: REM; OTC REMMY) is pleased to announce that Hastings Technology Metals Limited ('Hastings'), has today published a summary of the Pre-Feasibility Study ("PFS") for the the Yangibana Rare Earth Element Project (the "Project") in north-west Australia. REM is a 30% joint venture partner Yanginbana North concession which forms part of the Project and is covered by the PFS, further details of REM's ownership is fully described below.

The full Hastings news release dated 8 April 2016 is available at: http://www.hastingstechmetals.com/images/asx_latest/PFS_Announcement_-_FINAL_CL_FINAL3.pdf. The full Hastings release also contains information on Bald Hill South, Fraser's and Yangibana West in which REM has no interest and it should be noted that the overall PFS including the Net Present Value estimated does not separately identify the attributable part of the Yangibana North Concession in which REM has the 30% interest.

A technical report on the PFS will be forthcoming within the next four weeks.

Highlights of the Full PFS:

·      Toll Treatment Model: Hydrometallurgical concentrate produced on site will be shipped overseas for further separation and refining into individual rare earth oxides. Allowing the Project to fast track to prodcution in 2019.

·      Robust project economics:

o  Payback of capital cost - 2.5 years

o  Net present value estimated between AS$700-750 million (based on 8% discount rate)

o  Internal rate of return estimated at 40%

·      Long-term mine life:

o  7 year mine life with a total of 60,500 tonnes of separated oxides produced

o  Average strip ratio of 9.4:1

o  Average diluted TREO grade over mine life 1.15%

·      Off take contracts  -  prospects for the supply of rare earth hydromet concentrate to overseas customers are promising given on‐going negotiations.

·      Non  Disclosure  Agreements - signed  with  potential  end customers of separated rare earth oxides and metals

Commenting on the PFS, Kiran Morzaria, Chief Executive Officer of REM, said:

"The PFS for the Yangibana Rare Earth Project has confirmed the potential we saw in 2011. The project is now at an advanced stage with very strong fundamentals. For us, a notable take-away from this study is both the high internal rate of return and the quick payback of capital costs; these metrics point to potentially high levels of growth in the project."

Details of Ownership:

On 1 December 2011, REM announced that it had acquired a 30% free carried interest to Bankable Feasibility Study ("BFS") of the Yangibana North Rare Earth Deposit. The exploration costs until the commencement of the BFS are therefore borne solely by Hastings Rare Metals Limited (70% owners and operator). The same terms agreed and announced on 1 December 2012 also apply to Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North.

Qualified Person:

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance).

- Ends -

For further information, please contact: 

Rare Earth Minerals plc
Andrew Suckling	[phone]
Kiran Morzaria	[phone]
WH Ireland Limited (NOMAD & Broker)	[phone]
James Joyce
Mark Leonard
Square1 Consulting	[phone]
David Bick
Brain Alexander

 

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