LABRADOR – Search Minerals of Vancouver says the revised preliminary economic assessment of its Foxtrot rare earth element project outlines better economics. The document, prepared by Roscoe Postle Associates, evaluated an open pit and underground scenario with lower capital costs, a lower mining rate and a higher mill feed grade. The sizes of the open pit, waste dump and tailings pond will be smaller than originally planned.
The updated PEA gives the project a pre-tax net present value at 10% discount of $219 million and a 27% pre-tax internal rate of return. The undiscounted, pre-tax cash flow is estimated at $640 million. Initial capital costs for Foxtrot would be $221 million, but the project has a pre-tax payback of only 3.8 years.
Search says Foxtrot would have a 10-year mine life at a rate of 1,500 t/d. The first three years of mining would be in an open pit, with ah operating profit going toward development of an underground mine. The processing plant will include gravity and magnetic separation, flotation, and acid leaching to produce a mixed rare earth oxalate concentrates. Over the life of the mine it is expected to produce 7.0 million kg of neodymium oxide (Nd2O3), and 900,000 kg of dysprosium oxide (Dy2O3).
The Foxtrot project in the Port Hope Simpson District is only one of Search’s properties. Learn more about it an the others at SearchMinerals.ca.