Tasman Metals Pre-Feasibility Study confirms Norra Karr as economically robust project

ANSTO Minerals assists Tasman Metals by developing the hydrometallurgical process for the Pre-Feasibility Study.

Please read a prepared media statement on the subject below:

Mr Mark Saxon, President & CEO, is pleased to provide a summary of the Pre-Feasibility Study (PFS) with an effective date of 13th January 2015 for the 100% owned Norra Karr heavy rare earth element (REE) deposit in Sweden. 
 
The PFS confirms Norra Karr to be an economically robust project, with a long mine life, and the capacity to be a major producer of the most critical REE’s, dysprosium (Dy), yttrium (Y), neodymium (Nd) and terbium (Tb).
 
PFS Highlights:
  • After-tax Net Present Value (NPV) of US$313 million using a 10% discount rate
  • Internal Rate of Return (IRR) of 24% pre tax and 20% after tax using a 10% discount rate
  • Initial capital cost of US$378 million including contingency – low for long mine life heavy REE producer
  • Major exposure to the most critical REE’s, with 74% of revenue from magnet metals Dy, Nd, Pr, Tb, Sm
  • Norra Karr is the only REE project at PFS stage within the European Union
  • Project able to produce more than 200 tonnes of dysprosium oxide per year for at least 20 years
  • Unconstrained mine life is in excess of 60 years with extensive mineralization below and along strike from 20-year pit
  • No requirement in flowsheet or economic model for proprietary or commercially untested technologies

Key Project Attributes:
  • 25-year mining lease is already granted
  • Highest heavy rare earth oxide to total rare earth oxide ratio (HREO/TREO) of all major Western projects at 53%
  • Conventional open pit mining, with a constrained 20 year life of mine stripping ratio of 0.73
  • Attractive location with extensive transport/power/water infrastructure in place and close to major European REE consumers
  • High quality heavy REE-rich concentrate as reported in the Company’s July 9, 2014 press release
  • High leverage to anticipated increase in REE prices. Most revenue from Dy, Nd, Tb – the most in demand metals. Only 2.6% of revenue from cerium (Ce) and lanthanum (La) which are forecast to remain in long term oversupply
  • High level of reliance on local equipment, reagents and labour

Visit the Tasman Metals Ltd website for further details.

 

Published: 21/01/2015

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