Search Minerals Inc. (SMY.V) today announced the results of a revised PEA on its Foxtrot Rare Earth Element Project.
Selective mining of High Grade Core REE material from an initial 4 year open pit followed by a 6 year selective underground mining operation, with a 1,500 tpd mining mill rate.
Reduction in capital costs to $ 221M from $ 469M, with a 3.8 year payback, $219M NPV (at a discount rate of 10%) and 27% pre-tax IRR
Net revenue has increased $ 110/tonne milled and Opex costs increased $38/tonne, for a net increase in revenue per tonne of $ 72; this increased margin will help protect Search from commodity price fluctuations
The updated PEA scenario also provides for a smaller environmental footprint (i.e., smaller open pit, smaller waste dump and smaller tailings pond) and good potential for extended mine life.
The revised project will focus on higher grade REE material mined over LOM of 0.89% total REE ( TREE ) on average, which compares to the 0.58% TREE on average for the original bulk open pit concept.
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