MDM Engineering of South Africa engaged to complete preliminary economic
assessment on Area 4 at Lofdal
Cutfield Freeman retained as financial advisor to explore strategic
options for Lofdal
HALIFAX, May 21, 2014 /CNW/ - Namibia Rare Earths Inc. ("Namibia Rare
Earths" or the "Company") (TSX: NRE) (OTCQX: NMREF) is pleased to
report that it has initiated a Preliminary Economic Assessment ("PEA")
on the Area 4 heavy rare earth deposit at Lofdal in northwestern
Namibia. MDM Engineering of South Africa has been engaged as the
principal consultant for the report which will provide an economic
analysis of the potential viability of the current resources at Lofdal.
Ongoing metallurgical test work has achieved increased recoveries and
upgrades, indicating that the targeted mineral concentrate grade of 20%
total rare earth oxides ("TREO") can be attained from low grade feed of
0.3% TREO. Lofdal represents a unique opportunity for the development
of a significant heavy rare earth supply outside of China.
MDM Engineering will be assisted by Mine Technics of Australia for pit
optimization, mine planning and operations, Swinden Geoscience of
Canada for geological inputs, and Digby Wells Environmental of South
Africa for environmental management and planning. The PEA will utilize
the NI 43-101 compliant resource completed in 2012 by MSA Group. The
PEA is expected to be completed before the end of Q3.
As a result of this significant progress, the Company has engaged the
services of Cutfield Freeman & Co. Ltd. ("CF&Co") as a financial
advisor to assist in exploring strategic options to maximize
shareholder value for its Lofdal asset. CF&Co is a global specialist
mining corporate finance house headquartered in London with offices in
Toronto and Hong Kong. CF&Co has been retained by the world's major
mining and metal processing companies and advised on some of the
industry's most significant transactions. They have also frequently
worked alongside the management of smaller companies in implementing
successful growth strategies. In addition to broad experience on
transactions in the mining and metals processing sector, CF&Co has
specific relevant expertise advising clients in the rare earths
Significance of the Area 4 Resource
Lofdal represents a unique opportunity for the development of a
significant heavy rare earth supply outside of China. Current NI 43-101
compliant resources (company press release September 19, 2012) are
5,594 tonnes REO of indicated resource with 85.6% heavy rare earth
enrichment and 4,180 tonnes REO of inferred resource with 85.1% heavy
rare earth enrichment, all reported at a 0.3% TREO cut-off grade. The
contained tonnage of rare earth oxides (REO) essentially can double in
both categories at a lower cut-off of 0.1% TREO (Table 1). It is
therefore an objective of the Mintek metallurgical test work to
determine the amenability of the Area resource to concentration and
extraction at this lower cut-off grade to be used in the PEA.
(See Table 1 below).
Ongoing metallurgical test programs are being carried out concurrently
by two leading laboratories in rare earth mineral processing - Mintek
of South Africa and Nagrom of Australia. Mintek, as the lead
laboratory, has completed the most recent test work on lower grade
composites leading to the development of the beneficiation flow sheet
described below. Beneficiation to produce an acceptable heavy rare
earth mineral concentrate at Lofdal will likely comprise five steps:
X-ray transmission (XRT) sorting of run of mine feed (10-25 mm crush)
grinding of sorted material and fines to -38 µm
Flotation was initially rejected in the flow sheet as early results
demonstrated poor selectivity between the target xenotime
mineralization and calcite, one of the dominant gangue minerals.
Further testing has achieved very high recovery of xenotime with
calcite in flotation from magnetic concentrates prior to gangue
leaching such that magnetic concentrate grades can effectively be
doubled prior to leaching. Significant improvements in magnetic
concentrate upgrades and recoveries have also been achieved.
This work has shown the potential to attain the targeted concentrate
grade of 20% TREO from a run of mine feed grade of 0.3% TREO. Mintek is
finalizing a summary report on this phase (Phase 3) of the test
program, however recommendations have already been accepted to move to
larger scale optimizations (Phase 4) using a one tonne sample of sorted
material at a grade of 0.6% TREO that has been provided from the XRT
sorting program completed in December 2013 by Tomra Sorting Solutions
Opportunities for further optimizations by scavenging sorted XRT "waste"
using x-ray fluorescence (XRF) sensors and examining whole ore
flotation prior to magnetic separation will be studied as part of the
Phase 4 program. Final recovery data from the Tomra sorting program are
pending analyses of sorted "waste" material which has been retained in
Germany. All sorted material and fines have been composited for the
Phase 4 test work in South Africa. Mintek will retain approximately
700 kg and the remaining 300 kg will be provided to Nagrom.
Donald M. Burton, P.Geo. and President of Namibia Rare Earths Inc., is
the Company's Qualified Person and has reviewed and approved this press
About Namibia Rare Earths Inc.
Namibia Rare Earths Inc. is developing a portfolio of mineral
exploration projects in Namibia and is currently focused on the
accelerated development of the Lofdal Rare Earths Project in
northwestern Namibia. The common shares of Namibia Rare Earths Inc.
trade on the Toronto Stock Exchange under the symbol "NRE" and in the
United States on the OTCQX International under the symbol "NMREF".
No regulatory authority had approved or disapproved the adequacy or
accuracy of this release. The foregoing information may contain
forward-looking information relating to the future performance of
Namibia Rare Earths Inc. Forward-looking information, specifically,
that concerning future performance, is subject to certain risks and
uncertainties, and actual results may differ materially. These risks
and uncertainties are detailed from time to time in the Company's
filings with the appropriate securities commissions.
PDF available at: http://stream1.newswire.ca/media/2014/05/21/20140521_C9239_DOC_EN_40584.pdf
SOURCE: Namibia Rare Earths Inc.
For further information:
Namibia Rare Earths Inc.
Don Burton, President
Tel: +01 (902) 835-8760
Fax: +01 (902) 835-8761
Web site: www.NamibiaRareEarths.com
Cowen Securities LLC
(Principal American Liaison)
OTCQX International Market (U.S.)
Christopher Weekes / Stephen Nash
Tel: +1 (212)-372-5766