ANSTO Minerals has recently achieved a significant milestone for the Peak Resources Ngualla project, with the production of a NdPr high purity product containing a NdPr/TRE ratio > 99%.
Read a prepared media statement on the subject:
Peak Resources (ASX: PEK; OTCQX: PKRLY) has produced an ultra-high purity (99.9%) neodymium – praseodymium rare earth oxide using Solvent Extraction Pilot Plant at ANSTO Minerals, from a bulk sample of mineralisation from the company's wholly-owned Ngualla Rare Earth Project in Tanzania.
Peak said that the purity is expected to exceed the requirements of off take customers.
The production is an important milestone for Peak as this high value strategic commodity, used in the manufacture of permanent magnets, is forecast to provide over 50% of Ngualla’s projected revenue.
Earlier in the year Peak announced reductions in both operating and capital costs following a revised Scoping Study.
The enhanced results deliver an improved NPV and IRR of US$1.768 billion and 60%, on the December 2012 10,000 tonne per annum base case scenario. The option to double production rates to 20,000tpa REO delivers NPV10 of US$3.833 billion and IRR of 77%.
The neodymium – praseodymium oxide is the second of four separated oxide products due to be produced following the mid and heavy rare earth oxide announced in May.
With the ability to produce separated high purity rare earth oxides, this adds significant value to the project and allows access to wider markets for Ngualla’s products.
Ngualla is one of the very few rare earth projects outside of China to have successfully produced a high purity separated product, and is the highest grade of the large undeveloped rare earth deposits.
Critical rare earth products to underpin Ngualla’s revenue
Neodymium – praseodymium are high value strategic commodities used as magnet feedstock in the renewable energy, green and high technology industries.
The oxide is currently worth approximately $54,000 to $57,000 per tonne, with the neodymium – praseodymium comprises 52% of the value of Ngualla’s future production and together with the mid to heavy REO produced at ANSTO in May represents 75% of the forecast revenue for Ngualla.