London-listed emerging rare earths miner Pensana has advised that construction of the Longonjo mine, in Angola, is progressing on schedule and within the overall capital cost envelope of $217-million.

The company also advises that it has started with exploration on the Coola project, in Angola.

Main construction on the Longonjo mine started in May this year, which followed preparatory site works that enabled a streamlined construction programme.

Longonjo has been six years in the making, with Pensana having spent more than $70-million on exploration, as well as on technical and environmental studies on the project.

The Longonjo mine is expected to produce 20 000 t/y of mixed rare earth carbonate initially, which could be scaled up to 40 000 t/y at a later stage.

Pensana already has a five-year offtake agreement with Japanese multinational Toyota subsidiary Toyota Tsusho in place for the full yearly initial production of the mine.

Key project delivery partners on the Longonjo project include Pro-Process Engineering, Lycopodium Group and SRK Consulting.

In turn, SRK has contracted a specialist drilling company to define the final excavation profile for a tailings storage facility on site, which will meet Global Industry Standards on Tailings Management.

The drill rig will be relocated to the Coola exploration area after completing its scope of work on the Longonjo project.

The exploration on Coola, meanwhile, will test the potential for a deeply weathered and supergene enrichment central diatreme, as occurs at the Longonjo carbonatite. Coola is located 40 km north of Longonjo.

Pensana plans to investigate Coola with an initial ten holes of between 30 m and 50 m deep to investigate magnetic anomaly qualities underground. Samples will be collected and analysed on site using portable XRF technology, following which mineralogical studies will inform a follow-up drilling programme.

Pensana aims to delineate the contribution that this deposit may make as a high-grade feedstock to the Longonjo processing plant.

Pensana CEO Tim George comments that the on-time and within-budget progress at Longonjo is testament to the quality of planning and technical input that went into the project.

“We also look forward to positive confirmation of the Coola deposit to extend the use of the processing infrastructure being developed at Longonjo beyond the 20 years currently envisioned,” he adds.