QUEBEC – Matamec Explorations of Montreal says the feasibility study is positive for the Kipawa joint venture (Toyotsu Rare Earth Canada is earning a 49% interest) 50 km east of the town of Temiscaming. The project has a pre-tax net present value (10%) of $260 million and a pre-tax internal rate of return of 21.6%. After an initial capital expenditure of $374 million, total revenue over the 15.2-year life of the mine will reach an estimated $2.55 billion. A Kipawa producer would pay for itself in 3.9 years at an annual average concentrate production of 3,653 tonnes.
The Kipawa deposit contains measured and indicated resources of 23.86 million tonnes at 0.407% total rare earth oxide (TREO). The mineral reserve is 19.8 million tonnes with a diluted grade of 0.4105% TREO. An open pit will deliver 1.33 million tonnes of ore per year to the concentrator. The final products will be a chloride concentrate of heavy rare earth elements (HREE) and a concentrate of light rare earth oxides (LREO). Construction could begin as early as Q1 2015 for start-up in Q4 2016.
Matamec continues to optimize the project, committed to get the IRR above 25% by reducing capital and operating expenses. Visit Matamec.com.