Search Minerals Announces Positive Preliminary Economic Assessment of Foxtrot REE Project


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Search Minerals Inc. (SMY.V) today announced positive results of the Preliminary Economic Assessment on its Foxtrot Rare Earth Element Project.

Operational Highlights:

4,000 tpd open pit operation

Mine Life: 10 years

Proposed production of 14.3 Mt, at a grade of 0.58% Total REE, based on the initial mineral resource estimate disclosed in February, 2012

Processing by gravity, magnetic separation, and flotation concentration, followed by acid leaching, producing a mixed rare earth carbonate concentrate

Average REE recovery of 79%

Total Life-of-Mine production of 66 million kg of total REE, or 6,700 tonnes per year

Life-of-Mine production includes 10.3 million kg of neodymium oxide (Nd2O3), and 1.4 million kg of dysprosium oxide (Dy2O3)

Financial Highlights:

$408 million pre-tax Net Present Value ( NPV ) (at a 10% discount rate)

29% pre-tax Internal Rate of Return ( IRR )

$1.1 billion pre-tax, undiscounted cash flow

$3.0 billion total net revenue

Pre-tax payback period of 2.8 years

$469 million initial capital cost

$96 per tonne average unit operating cost

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: IRR , NPV

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