8th Apr 2016 11:14
LONDON (Alliance News) - Rare Earth Minerals PLC on Friday said a pre-feasibility study for the Yangibana rare earth element project in north-west Australia, in which it is a 30% joint venture partner, has been published.
The study was published by Hastings Technology Metals Ltd, and details include estimates of Yangibana's net present value of between AUD700 million and AUD750 million, and seven-year mine life with a total of 60,500 tonnes of separated oxides produced.
The study also includes an estimated internal rate of return at 40%, and a payback on capital costs of two and a half years.
"The PFS for the Yangibana rare earth project has confirmed the potential we saw in 2011. The project is now at an advanced stage with very strong fundamentals. For us, a notable take-away from this study is both the high internal rate of return and the quick payback of capital costs; these metrics point to potentially high levels of growth in the project," said Rare Earth Chief Executive Officer Kiran Morzaria in a statement.
Shares in Rare Earth were up 0.6% at 0.553 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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