QUEBEC - The preliminary economic assessment of the Kipawa heavy rare earth elements project in the Temiscamingue region, and the number are good enough to have Montreal-based Matamec Explorations vowing to move forward. A capital investment of $315.8 million is expected to generate $1.67 billion in gross earnings. The before-tax net present value (8% discount) is pegged at $606 million, and the project will have a 36.9% before-tax internal rate of return.
Matamec says the project has several good things going for it. The mineralogy is straightforward, the deposit geometry is excellent, the flowsheet for the mill is simple, and most of the necessary infrastructure is in place. A concentrate grading 1.11% TREO (total rare earth oxides) will be made, and the recovery rate will be 81%. The project will produce 5,072 t/y of mixed TREO concentrates.
The project is on the fast track for development, with first production planned for Q2 2016, says Matamec. The company is moving ahead with a feasibility study.
The list of recoverable minerals is long and exotic - HREE, yttrium, zirconium, niobium and tantalum. A detailed account of them is available at Matamec.com.
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