Name of the Project
Browns Range heavy earths pilot plant development project.

Location
Western Australia.

Project Owner/s
Northern Minerals.

Project Description
The project has been separated into three development stages and enables Northern Minerals to test the process, market the mixed rare earth carbonate product, develop the project to bankable feasibility study (BFS) level and build the full-scale operation.

Stage 1 includes the construction of a three-year, 60 000 t/y pilot plant operation. It will comprise an opencut mining operation, with processing through a beneficiation and hydrometallurgical pilot plant to produce 49 000 kg/y of dysprosium in 590 000 kg/y of total rare-earth oxide (TREO) contained in a mixed rare-earth carbonate. This stage is important to derisk the operation by testing the process and improving the knowledge of grade control and the project’s geology.

Stage 2 involves developing the project to BFS level, based on the definitive feasibility study (DFS) completed in March 2015; and on the results of the studies, announced on August 27, 2015, aimed at reducing mining costs, boosting production, producing a premium product and increasing the ore reserve.

The final stage involves building the project to full-scale production, based on the successful outcomes of stages 1 and 2. Once at full-scale, the project will process 585 000 t/y to produce 279 000 kg/y of dysprosium contained within 3 098 000 kg/y TREO (before yttrium rejection) in a mixed rare-earth carbonate.

Potential Job Creation
The project is expected to create 50 construction jobs and 45 ongoing operational positions.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The project has a capital cost of A$56-million.

Planned Start/End Date
First production targeted in 2026, subject to approvals and project funding.

Latest Developments
Northern Minerals announced binding commitments on September 16 to raise A$43-million through a two-tranche placement to advance its Browns Range project.

The two-tranche placement to new and existing institutional and sophisticated investors will have an issue price of A$0.019 a share – a discount of 20.8% on the last closing share price, as well as a 22.4% discount on the five-day volume-weighted average price.

Northern Minerals will also offer a share purchase plan (SPP), aiming to raise an additional A$5-million at the same price of $0.019 a share.

Proceeds from the placement and SPP will be applied towards the completion of the DFS, project development initiatives, exploration drilling, and working capital requirements.

The company aims to finalise the DFS by the first quarter of 2025, leading to a final investment decision (FID) by mid-2025.

“The release of the company’s updated mineral resource estimate in the fourth quarter will be a key milestone to enable the DFS to be completed,” MD Shane Hartwig has said. 

Hartwig has said that while the company’s target FID date has moved, the team is using this time to complete additional key technical work programmes that will assist in ongoing technical due diligence reviews of the project, important in ensuring the production of a DFS focusing on long-term, sustainable value for shareholders.

Key Contracts, Suppliers and Consultants
MACA (bulk earthworks); Primero (turnkey solutions provider); Sinosteel MECC (engineering, procurement and construction contract); and K-Technologies (scoping study).

Contact Details for Project Information
Northern Minerals, tel +61 8 9481 2344, fax +61 8 9481 5929 or email info@northernminerals.com.au.