RE: Extract from today's tweet.27 Nov 2019 21:54
Founded in 2016 and backed by global supply chain business Noble Group, Talaxis (currently a 49% shareholder in the Songwe Hill project) has not only provided the necessary funding to complete the BFS but also has the option to increase its interest to 75% by arranging funding for 100% of the project’s development costs.
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With a focus on technology metals, and more specifically rare earths, Talaxis is the ideal company to help move Songwe Hill into production. What other rare earths junior can boast such a prestigious financially sound partner?
What Songwe Hill is and what it could be.
A pre-feasibility study for Songwe Hill, completed in 2015, was focused on a 500 000 tpy operation to produce 2 800 tpa of rare earth oxide in concentrate over an 18-year lifespan for a cost of US$216 million.
“Subsequent to this study, we completed a major drilling programme which resulted in a 60% increase in Songwe Hill’s measured and indicated resources, 95% of which are potentially accessible by open pit – less than 160 m below surface,” Dawes points out.
The combined measured and indicated mineral resource estimate now totals 21 Mt, at a grade of 1.41% TREO (total rare earth oxides).
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“On the back of our significantly larger resource, which still remains open at depth, our BFS will look to establish the feasibility of building a larger operation – potentially double our original 500 000 tpm throughput design plan. The enlarged resource may also support a longer mine life,” Dawes continues.
While the potential to double the size of Songwe Hill is an exciting proposition, the BFS will also evaluate options to produce not just a mixed rare earth concentrate but to separate the minerals completely – most importantly neodymium (Nd) and praseodymium (Pr) – which account for 35% of production but is over 80% of the value.
In October, Mkango Resources appointed DRA Global company SENET to conduct and complete the BFS – which as mentioned is scheduled to be completed by the end of 2020.
“SENET is a lead engineering firm with substantial experience in Africa and in the delivery of hydro-metallurgical plants. Given these credentials and having established a working relationship with the company over various aspects of our project, we were pleased to move forward with the appointment,” Dawes shares.
“And our priority is to do conduct the BFS properly, with the right people and expertise to deliver a robust project at the right size.”
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With the right project parameters in place, Songwe Hill will move into construction following completion of the BFS and Talaxis’ decision to increase its stake in the project.
Dawes notes that the construction period should take approximately 18 months to deliver mine and process plant – meaning it could produce first conce
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