Peak Resources Announces Scoping Study Delivers Very Positive Results
December 3, 2012 (Source: Marketwire) — Peak Resources Limited (Peak) (ASX:PEK) (OTCQX: PKRLY), is pleased to announce the completion of the scoping study, including preliminary economic assessment on its 100% owned Ngualla Rare Earth Project in Tanzania. The Company is extremely encouraged by the confirmation of high returns, low cash costs, and the low capital cost required to bring the project into production.
Peak Managing Director Richard Beazley said, “The outcome of the scoping study confirms that Ngualla is indeed a leading and stand out project in the rare earth industry with excellent efficiencies in capex and opex driven by the deposit’s dominant natural advantages. This study clearly delineates the strong value proposition of Ngualla and catapults its development ahead of other projects.”
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- Strong economics with a base case pre-tax net present value of US$1.571 billion and an internal rate of return of 53%.
- Low capital cost requirement of US$400 million (excluding contingency) with a payback period within the first 3 years of production.
- Low operating cash costs of US$10.09 per kg Free on Board “FOB” for the first 5 years of production with an average cost of US$11.05 per kg over 25 years.
- Annual average revenues of US$361 million at 10,000 tonne equivalent rare earth oxide production.
- Scoping study mine plans based solely on the Indicated and Measured portions of the Mineral Resource.
- Significant opportunity and available resource to upscale production to 40,000 tonnes per annum and extend the mine life, as the base case scoping study mine plan exploits less than 10% of the total Mineral Resource.
- The highest grade large scale rare earth deposit in Africa and the fifth largest deposit outside of China.
- Mineralisation is not radioactive and has the lowest levels of uranium (18ppm) and thorium (43ppm) of any major rare earth deposit.
- Beneficiation and metallurgical process proven in laboratory test work with pilot plant work underway.
- Relatively simple metallurgical process utilising sulphuric acid leaching with no inherently troublesome acid cracking or baking requirements.
- On target to begin production in Q1 2016.
Physical and Financial Summary
The key physical and financial parameters that define the Ngualla Rare Earth Project value proposition are listed below in Table 1. These values strongly support the project as a low cost, long term producer of rare earth products for the world market.
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