Arafura Resources published the results of its Definitive Feasibility Study (DFS) for the Nolans project in February 2019. The work carried out as part of the DFS has built on previous concept and pre-feasibility level of accuracy studies, and extensive metallurgical test work programs, commissioned by Arafura since 2005. Vision from large-scale piloting of the unit operations that constitute the project’s process flowsheet can be viewed here.

Refer to Image 1

A range of independent consultants contributed to the DFS, including Hatch (Lead Engineer), Mining Plus, AMC Consultants, Knight Piésold Consulting, Simulus, GHD, JRHC Enterprises, Ride Consulting, Strategic Human Resources, Roskill, CRU and Qube Bulk.

Capital and operating costs estimates for the DFS have been developed in line with an AACE Class 3 estimate with a target accuracy of ±15%.

DFS Results

A Summary Report for the DFS is available here and the key outcomes from the DFS are presented below.

The DFS has determined that the project’s flowsheet is technically and economically viable to treat Nolans ore.  Arafura can position Nolans as a viable long-life, low-cost alternative supplier of NdPr oxide, 100%-domiciled in a jurisdiction with low political risk.

Arafura’s evaluation of the Nolans project indicates that it is financially robust and that it should provide a strong return on investment.

KEY PROJECT INFORMATION

Total Mineral Resources (contained TREO)

Mt

1.45

Measured and Indicated Mineral Resources (contained TREO)

Mt

0.97

Total Ore Reserves (contained TREO)

Mt

0.57

Annual NdPr Oxide Production

tpa

4,357

Annual Phosphoric Acid Production

tpa P2O5

73,336

Mine Life – Ore Reserves

Years

23

Preproduction Capital Costs, including Contingency

A$M

1,006

Operating Costs (average)

 

 

Mining

A$M/a

43

Processing

A$M/a

147

General and Administration

A$M/a

21

Total Operating Costs

A$M/a

211

Operating Costs per kg NdPr Oxide net of Phosphoric Acid Credit

US$/kg

25.94

Net Present Value (after tax with 10% discount rate)

A$M

729

Internal Rate of Return

%

17.43

EBITDA (average)

A$M/a

377

Payback 

Year

5

Engineering, Design, Construction & Commissioning

Month

30

  

 

Image 1

Image 1