PROJECTS AND EXPLORATION •
and mineral reserve estimates , detailed mine design , extensive metallurgical test work and process plant design up to Phase 2 . The DFS will incorporate updated capital and operating costs and will reflect the most recent market outlook and product prices .
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STEENKAMPSKRAAL ’ S TIME HAS COME
Location : South Africa Phase : Definitive Feasibility Study Resource : Rare earths
Steenkampskraal Monazite Mine ( SMM ), one of the world ’ s highest grade rare earths mines and a subsidiary of Steenkampskraal Holdings Limited ( SHL ), has all the regulatory approvals required to commence mining and to produce monazite concentrate , mixed rare earth concentrate and separated rare earth oxides .
Mined by Anglo American from 1952 to 1963 , during which 126 280 tons of ore produced 59 555 tons of monazite concentrate , containing 26 201 tons of rare earths at an average grade of 20.75 %, Steenkampskraal has well-developed infrastructure and an NI 43-101 compliant mineral resource of 605 000 tonnes at 14.4 % ( 86 900 tonnes of TREO ) and mineral reserve of 799 700 tonnes at 8.68 % ( 69 400 tonnes of TREO ), which are sufficient to operate the mine at a production rate of at least 2 700 tonnes of total rare earth oxides ( TREO ) per annum for more than 20 years . The resource is open at depth and a brownfield exploration programme is expected to increase it further .
When appointed in February as CEO , Mitford Mundell commented : “ Steenkampskraal promises significant value for investors , host communities and other stakeholders , and is a strategic asset for South Africa . I am delighted to be joined by Bernard and Clinton Halsey [ chartered accountant and non-executive director ] on the board and as significant new investors , as they not only bring a wealth of experience , but also a clear message to investors that Steenkampskraal ’ s time has come .”
Due to the extent and excellent condition of historic mine development , the project has a relatively low capital requirement . All regulatory approvals are also in place . SHL plans to raise initial equity finance of USD2-million to cover the DFS and updated Competent Persons Report ( CPR ), as well as working capital for the next six to eight months . Thereafter the company will raise project capital for execution of Phase 1 , at which stage an appropriate debt / equity ratio will be considered . The combination of very high grades , shallow mining depths and existing underground development will enable Steenkampskraal to be one of the lowest cost rare earth producers in the world .
The total grade at Steenkampskraal of these four rare earths is 3.49 %, which is higher than the total rare earth grades of most other rare earth projects .
Bernard Swanepoel , appointed by SHL as chairman in February this year said : “ Steenkampskraal is one of South Africa ’ s most valuable strategic mining resources . The potential is enormous , and once in production , it will place South Africa as one of the alternate sources to China for the supply of the rare earths used in electric motors and ‘ green ’ technology , mainly neodymium , praseodymium , dysprosium and terbium . These rare earths are experiencing significant growth in demand and resultant high prices .”
These four rare earths are vital to combat global warming and climate change . They are used to make magnets for electric vehicles and wind turbines . The total grade at Steenkampskraal of these four rare earths is 3.49 %, which is higher than the total rare earth grades of most other rare earth projects and represents about 92 % of the value of Steenkampskraal ’ s rare earths basket .
The Steenkampskraal mining and processing project will be developed in three phases : Phase 1 : the production and sale of monazite concentrate ; Phase 2 : the production and sale of mixed rare earth concentrate ; and Phase 3 : the production and sale of separated rare earth oxides .
SHL is in the process of commissioning a Definitive Feasibility Study ( DFS ) for Phase 1 of the project . The DFS will build on all previous work , which includes NI 43-101 compliant mineral resource
DIAMOND DRILLING PROGRAM AT KADA OXIDE GOLD PROJECT COMMENCES
Location : Guinea Phase : Exploration Resource : Gold
Golden Rim Resources Ltd announced in late February this year that it has commenced a 3 500m diamond drilling ( DD ) program at its flagship Kada Gold Project ( Kada ) in Guinea .
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African Mining • May 2023 • 9 |