The third rare earth (Araxa PEA) with 40 year mine life They could sell if they wish.
Araxá is one of the highest grade rare earth deposits in the world
Araxá has a 40 year mine life and an NPV of $967M USD based on PEA filed in June 2012
The Araxá Rare Earth/Niobium/Phosphate project is a poly-metallic deposit located five km south of the town of Araxá, in the state of Minas Gerais. The Araxá Project is comprised of four exploration permits and one mining permit, covering a total area of 226 hectares.
The Project is located next to Vale’s phosphate mine and Single Super Phosphate (SSP) fertilizer plant as well as the world’s largest operating niobium mine, which is owned and operated by CBMM.
Because of the project’s close proximity to two operating mines, the project will benefit from existing local infrastructure. Within the exploration permit boundary or within a five km radius, MBAC will have access to tarred roads, grid power, borehole water, telecommunications, accommodations and office space, and a skilled workforce.
Through 2011 and 2012, MBAC conducted detailed drilling and development work to confirm historical resource data. The drilling program confirmed a high-grade, near surface rare earth element mineralization.
PROJECT WITH MULTIPLE MINERALS
The June 2012 NI 43-101 resource estimate increased the resource to 6.3Mt at an average TREO (total rare earth oxides) of 5.01% (using a 2% TREO cut-off), Nb205 (Niobium Oxide) at an average of 1.02% and 8.40% P2O5 and increased the inferred mineral resource estimate to 21.9Mt with an average TREO content of 3.99% (using a 2% TREO cut-off), Nb205 at an average of 0.64% and 7.86% P2O5.
MBAC’s preliminary economic assessment reported that Araxá would have a 40 year mine life with an after-tax NPV of $967MM US and an IRR of 30%, using conservative REO basket pricing assumptions.
MBAC operated a 16,592 man-hours hydrometallurgical pilot plant in 2013. The pilot campaign, free of Lost Time Injury Rate, successfully demonstrated the previous bench scale test work results that provided information for the PEA Report. During the campaign, a concentrate grading 98.5% REO was produced as well as a 99.5% niobium oxide concentrate. MBAC is also in discussions with third parties for potential off-take agreements. The asset has been determined to be "non-core" and MBAC continues to review all strategic options.
Araxá's preliminary economic assessment provided the following resource estimate and project economics:
Preliminary Economic Assessment Report
| Total Rare Earth Oxides |
Tonnes |
Grade P2O5(%) |
| Measured & Indicated resources |
6.34 million |
5.01 |
| Inferred resources |
21.94 million |
3.99 |
| Highlights of Project Economics and Key Parameters |
| After tax NPV @ 10% |
$967 million USD |
| Mine Life |
40 years |
| Production |
8,750 tonnes per year (phase 1)
17,500 tonnes per year (phase 2after 5 years) |
| Internal Rate of Return |
30% |
| CAPEX |
$406 million USD (phase 1)
$214.5 million USD (phase 2) |
| OPEX |
$10.50 USD per KG (phase 1)
$9.60 USD per KG (phase 2) |