article from minignews.net re:pfs

Nolans gets green light

IT'S all systems go for Arafura Resources' Nolans phosphate rare earths-uranium project in the Northern Territory after a pre-feasibility study confirmed the project's viability.


Rare earth oxides

The study valued the project's post tax net present at $A1.1 billion over the 20-year life of the mine, with annual revenues of $410 million, and the project's capital costs are estimated at $750 million.

The project, 133km from Alice Springs, has limited overburden and is amenable to shallow openpit mining with low strip ratios.

The JORC-compliant indicated and inferred resource at Nolans is 18.6 million tonnes at 3.1% rare earths, 14% phosphate and 0.47 pounds per tonne uranium.

"The results of the study are a major step forward for the project and the company," Arafura said in a market announcement.

"It validates that Nolans can sustain long-life production of specialty materials that will have a vital role to play in the latest technology in the electronics industry that only rare earths can deliver."

The company also said many of the products will help with environmental abatement programs aimed at energy efficiency and reducing greenhouse gas emissions.

The Arafura board has formally approved a pilot plant study to begin early next year.

For the remainder of this year, Arafura will be preparing for processes related to the pilot plant. The company will also be drilling to identify additional resources and improve the classification of current resources to measured status.

Commissioning is scheduled for 2010 and production is planned for 2011 at 25%, rising to 75% by the end of the year. Full production is planned for 2013.

The company is also looking into a potential joint venture with another organisation which could provide technical, financial or marketing assistance to develop the project.

Pre-feasibility studies into the capital and operating costs for the project were done by Bateman, Sinclair Knight Mertz and GHD Australia.

Rare earths are used as catalysts in petroleum refining, rechargeable batteries, electric motors, phosphors and ceramics with the strongest area of growth in electric motors and plasma panels.

Shares in Arafura have slipped 25c to $1.43 in morning trade.