good article @SPartner This talks to the proposed simplicity of...

good article @SPartner

This talks to the proposed simplicity of their operation. I think the current team should be fine to get this into operation - and then as they move further downstream they can bring in the technical expertise later on. All of the below supports a low cost phase 1 operation. This all means low capex/opex too / lower funding requirement. Pulled out some key extracts.

The proposed mining operation will be simplicity itself. “It’s really more of a quarrying operation than mining,” says Stephens. “The fleet is simply one excavator and a handful of trucks, working just a single shift. Initial open-pit mining will start at the top of the hill and will utilise an existing and structurally sound haul road to the base of the hill and the ROM pad at the processing plant. Tonnages will be quite small – there is virtually no waste to mine – and will total about 0.5 Mtpa in Stage 1.”He adds that a detailed mine design, plan and schedule will be undertaken early in 2024 using the MRE update and says Lindian is already talking to multiple providers who will be invited to tender for the provision of drill, blast, load, haul, and mobile crushing services by early 2024.“The plant is unusual for a rare earths project as we are able to use a chemical-free separation process,” states Stephens. “This is possible because the monazite mineralisation we are targeting is contained within carbonatite material. The monazite is quite heavy and dense while the carbonatite is quite light so they can easily be separated using gravity processes. In essence, we can use a minerals sands type of process.”The mined material will be crushed and screened using mobile crushing and screening equipment while the milling circuit will have a capacity of 60 tph. The classification circuit consists of a vibrating screen providing a coarse and fine size fraction for the gravity separation circuits, consisting of spiral concentrators and Multi-Gravity Separators.Concentrate cleaning will be undertaken using a single Low Intensity Magnetic Separator (LIMS) and two Wet High Intensity Magnetic Separators (WHIMS).Concentrate dewatering will be undertaken using one filter press and concentrate will then be bagged and stored, ready for dispatch. The plant – which will have a throughput capacity of about 440 ktpa – has been designed to produce a marketable volume of monazite mineral concentrate with an NdPr ratio that ranges from 18 to 22%.

Construction of the plant
According to Stephens, construction of the plant – which will incorporate skid-mounted modules – should start in March, when the foundations will be concreted. “Construction will take several months, and we expect to be in a position to start commissioning in Q4-2024 with our first concentrate produced either in the same quarter or early in 2025,” he says.Capital costs are still to be determined but are going to be very modest by the standards of most mining projects while the operating costs are also expected to be very low – indeed exceptionally low if grid power can be accessed, which seems likely.Lindian Resources is well-funded to take Kangankunde through to production. It has existing cash reserves of AU$24 million and has also recently concluded a sale and purchase contract with global commodity trader, Gerald Metals, part of the Gerald Group, which effectively underwrites the Stage 1 project development cashflows. In terms of the agreement, Gerald will purchase 45 kt of monazite concentrate over a 60-month period. In addition, the company may elect to make available to Lindian a finance facility of up to US$10 million.

He adds that the US government views rare earths as a strategic commodity and says the company has commenced early stage discussions with US government officials regarding the potential for the provision of funding and concentrate sales support for the Stage 2 project.