The Ashram Deposit: Rare Earth Elements / Fluorspar
Robust Economics - Conventional Metallurgy - Globally Significant Size - Secure Jurisdiction
- Current Resource Calculation:
- Measured: 1.59 Mt averaging 1.77% TREO
- Indicated: 27.67 Mt averaging 1.90% TREO
- Inferred: 219.8 Mt averaging 1.88% TREO
- 45%+ Total Rare Earth Oxide (TREO) concentrate successfully produced.
- Deposit remains open along strike and at depth..
- Positive economics with significant Fluorspar by-product value still to be added.
- Financial participation of Quebec Government:
- $1M CAD direct equity investment.
- $365K CAD funding of parallel pilot plant program & software modelling (Universite’ Laval).
- $300K CAD funding of tailings optimization program (INRS).
- Flow sheet optimization work currently underway by NRCan (Canadian Federal Government).
- Pre-Feasibility Study currently underway.
- Study results show a strongly positive cash flow from a 4,000
tonne per day open-pit operation at Ashram with a 25-year mine life, a
pre-tax and pre-finance Net Present Value (NPV) at a 10% discount rate
of $2.32 billion, a pre-tax/pre-finance Internal Rate of Return (IRR) of
44% and a pre-tax/pre-finance payback period of 2.25 years.
The current Ashram Technical Report dated January 7, 2015 explains why
no after-tax case is included, and that a combined tax rate of around 32.5% may
apply to production.
- SGS's economic evaluation was based on the March 6,
2012 resource estimate which used a base case geologic cut-off grade of
1.25% TREO and provided 1.59 million tonnes (Mt) averaging 1.77% TREO of measured resource, 27.67 Mt averaging 1.90% TREO of indicated resource, and 219.8 Mt averaging 1.88% TREO of inferred resource. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
- The rare earth elements at Ashram occur in simple and
well-understood mineralogy, being primarily in the mineral monazite and
to a lesser extent in bastnaesite and xenotime. These minerals dominate
the currently known commercial extraction processes for rare earths.