30th Jan 2019 15:59
LONDON (Alliance News) - Cadence Minerals PLC said Wednesday the maiden ore reserves declared on its 30%-owned Yangibana rare earth project in Western Australia puts the total probable ore reserves at 2.1 million tonnes total rare earths.
The total probable ore reserves includes 1.7% total rare earths with 0.4% neodymium oxide and praseodymium oxide. Both elements are used to manufacture permanent magnets, which are used in the engines of electric vehicles.
"It is great to see the inclusion of Cadence's joint venture ground within the mine plan of the Yangibana project, and we look forward to working with Hastings minerals to progress the mining joint venture and crystallise value to Cadence's shareholders," said Chief Executive Officer Kiran Morzaria.
The probable ore reserves for the entire Yangibana project have increased 34% to 10.4 million tonnes at 1.22% total rare earths, including 0.4% neodymium oxide and praseodymium oxide. The updated ore reserves extends the mine life by three years to 12 years.
The net present value of the Yangibana project has been increased to AUD516 million, about GBP283 million.
Cadence's joint venture partner, ASX-listed Hastings Technology Metals Ltd, owns the remaining 70% of the Yangibana project.
Morzaria added: "The Yangibana project has high grades in neodymium and praseodymium, which are critical in the manufacture of permanent magnets used in the motors of electric vehicles. In 2017, 75% of the rare earth market by value was represented by neodymium and praseodymium, and we see Yangibana as an important part of that supply chain."
Shares in Cadence Minerals were down 3.7% Wednesday at 0.13 pence each.
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