Gakara rare earths project, Burundi
Name of the Project
Gakara rare earths project.
Location
The Gakara mining licence is located within the north-eastern Kibaran belt, in the Bujumbura province of western Burundi.
Client
Rainbow Rare Earths has a 90% interest in the Gakara project, with a nondilutable 10% owned by the Burundi government.
Project Description
Gakara is one of the highest-grade – 47% to 67% total rare-earth oxide (TREO) – rare earths projects globally.
The project hosts a deposit with a very high run-of-mine grade of 54.3% on average TREO for 141 853 t of contained TREO, with high-quality and well understood mineralogy.
The high grade of the vein material is expected to enable Rainbow to pursue a low-risk processing route. Owing to the minimal level of processing required, complex and expensive processing facilities and the use of hazardous chemicals will not be required.
Rainbow is fast-tracking the project into production and will produce a high-grade concentrate using simple mining.
Jobs to Be Created
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Value
Not stated.
Duration
First sales of concentrate are expected by the end of 2017.
Latest Developments
Rainbow has secured funding from Pala Investments for the development of its Gakara rare earths project. This financing agreement is for an estimated $12-million and, subject to the completion of certain milestones, will fund the project through to full production.
The first stage of funding is a two-tranche convertible loan for $6-million, allocated for studies to detail the mining method and sequence, investigate the optimal processing methods, and prepare for trial mining.
The second tranche will provide the capital to start trial mining, which will be used to optimise the mining method and increase efficiencies. On success of the trial mining phase, Pala can opt to convert the loan and invest a further $6- million on an equity basis. These funds will be used to expand mine infrastructure on site and allow for larger-scale mining to start, with a targeted production run rate of 5 000 t/y of >50% TREO concentrate.
Rainbow has identified extensive deposits within the mining licence that have been incorporated into the mine plan for the first five years. Additional detailed exploration is planned to take place across the 39 km2 licence area focused on known mineralisation outcrops to extend the mine life further.
Preparation for mining at Gakara is underway at the Rainbow’s first production site, Gasagwe, with haulage and access road construction being a primary focus, as well as the establishment of the basic infrastructure for the mine site. Along with the appointment of several managers, a local labour force has been recruited and initial extraction of run-of-mine (RoM) ore from the high-grade veins will start shortly, increasing in quantity once Rainbow has taken delivery of its first fleet of mining machinery towards the end of April.
The RoM ore will be stockpiled for about six months before commissioning of the ore processing plant.
Rainbow has signed a full engineering, procurement and construction management (EPCM) contract with Obsideo
Consulting for the design, supply and construction of its ore processing plant, with a capital equipment value of about $1.5-million. The agreed commissioning and handover of the plant are expected in the fourth quarter of 2017 to meet Rainbow’s stated objective of making its first sales of rare-earth concentrate through its sales and distribution partner tk Raw Materials, before the end of 2017.
Key Contracts and Suppliers
Obsideo Consulting (EPCM).
On Budget and on Time?
Not stated.
Contact Details for Project Information
Rainbow Rare Earths, email info@rainbowrareearths.com.
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