Namibia Critical Metals Inc. Announces Positive Pre-Feasibility Study for the Lofdal Heavy Rare Earths Project
Executive Summary
- Namibia Critical Metals released its Pre‑Feasibility Study for the Lofdal Heavy Rare Earths Project, presenting a Base Case NPV of US$389 M (pre‑tax) and IRR of 21.7%, and a Divergent Case NPV of US$1.25 B (pre‑tax) with IRR of 44.1%.
- The study outlines total capital costs of US$347.9 M, pre‑production capex of US$273.4 M, and an after‑tax payback period of 4.2 years (Base Case) or 2.75 years (Divergent Case).
- Mineral reserves are quantified at 32 Mt containing 56,341 t TREO (including 23,894 t LREO and 32,448 t HREO), supporting an average annual production of 1,478 t TREO (119 t Dy, 17.8 t Tb, 841 t Y).
Key Details
- Economic Highlights
- Base Case NPV (5% discount): US$389.2 M pre‑tax / US$275.5 M after‑tax.
- Divergent Case NPV: US$1,245.6 M pre‑tax / US$747.9 M after‑tax.
- IRR (pre‑tax): 21.7% (Base) vs 44.1% (Divergent).
- After‑tax IRR: 19.0% (Base) vs 34.8% (Divergent).
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Capital Payback (after‑tax): 4.2 yr (Base) / 2.75 yr (Divergent).
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Capital & Operating Costs
- Total capital cost: US$347.9 M (Mining US$27.6 M, Process US$181.6 M, Facilities US$58.7 M, Tailings US$21.6 M, Closure US$1.0 M, Contingency US$57.4 M).
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Life‑of‑Mine operating cost: US$1.68 B total; US$96 per tonne mined; US$63.75 per kg TREO.
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Production & Reserves
- Proven & Probable reserves: 32.01 Mt at 0.075% TREO (56,341 t TREO).
- Annual ROM feed: 3.01 Mt (1.10 Mt high‑grade + 1.91 Mt low‑grade).
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Average annual output: 1,478 t TREO (119 t Dy, 17.8 t Tb, 841 t Y).
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Metallurgical Findings
- XRT sorting upgrades ROM by 2.3–2.7×; recoveries 60‑70% for low‑grade ore.
- Flotation concentrate grade: 4‑6% TREO with overall recovery up to 70%; HREO recovery 58‑75%.
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Pilot plant continuous flotation demonstrated 55.5% total REE recovery at 2.65% TREO grade.
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Hydrometallurgical Flow Sheet
- Simplified acid bake, two‑stage impurity removal, UIX, and dual‑stage HREE carbonate precipitation.
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High‑temperature sulfation (600 °C) achieved 94% Tb/Dy dissolution; impurity removal reduced thorium, scandium, Fe, Al, U losses to ~2%.
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Infrastructure & Utilities
- Water supply: 1.5 M m³/yr required; borehole development cost US$10 M.
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Power: 94,361 MWh/yr needed; grid + 33% solar; transmission line & substation capex US$29 M.
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Pricing Assumptions (average life‑of‑mine)
- Base Case: Dy $663/kg, Tb $2,880/kg, Y $60/kg.
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Divergent Case: Dy $855/kg, Tb $3,712/kg, Y $130/kg.
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Sensitivity Highlights
- ±20% metal price change drives the largest NPV variation.
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Metallurgical recovery variations (85‑115%) shift after‑tax NPV from ~US$100 M to ~US$440 M (Base) and from ~US$500 M to ~US$1 B (Divergent).
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Joint Venture & Funding
- JV with JOGMEC; JOGMEC has earned a 40% interest after C$10 M spend.
- Total approved funding to date: C$17.445 M of the $20 M earn‑in requirement.
Notable Quotes
- Darrin Campbell, President: “Lofdal is well positioned as one of very few advanced major Dy/Tb‑ and Y projects outside China… The Project's economic case is now underpinned by three value pillars: Dy/Tb high‑temperature magnet demand, Yttrium demand from aerospace, semiconductors and turbine industry and Nd/Pr magnet demand.”