|Location:||New South Wales (NSW), Australia|
|Ownership:||80% Scandium International Mining Corp.|
1. Subject to financing. See Cautionary Notes -- Loan Details.
The Nyngan scandium resource is located in NSW, Australia approximately 500 kilometers northwest of Sydney. Minerals exploration at the site has defined a measured and indicated resource significantly larger (7X) than the currently planned 20 year mine life outlined in the feasibility study.
Surface mining at the site is anticipated to be done by conventional truck and shovel method. The resource is a typical tertiary laterite, composed of limonites and saprolites. The top 15 metres is alluvial material, and the next 50 metres is the limonite-saprolite host for scandium. The resource indicates a very low strip ratio, and it is expected that the plant will be satisfied by a partial-year mining schedule during the dry summer season (contractor campaign mining).
During May 2016 the Company issued a National Instrument NI 43-101 Technical Report entitled "Feasibility Study - Nyngan Scandium Project". The feasibility study was independently prepared; Lycopodium Limited led the feasibility study team from their Brisbane, Australia office.FEASIBILITY STUDY HIGHLIGHTS:
The feasibility study confirms the commercial viability of both the resource and the process for recovering scandium, as configured, for the Nyngan Project. The Nyngan resource has now been expanded by 40% compared to the prior estimate, a 20 year project mineable grade has been defined through a detailed mine plan, and the processing facility has been configured and is supported by detailed flowsheet test work. Based on the results of the feasibility study, the technical team led by Lycopodium has recommended that the Project owners seek project financing and proceed to construction.
The feasibility study concludes that the Project has the potential to produce an average of 37,690 kilograms of scandium oxide (scandia) per year, at grades of 98.0%-99.9%, generating an after tax cumulative cash flow over a 20 year Project life of US$629 million, with an NPV10% of US$177 million. The average process plant feed grade over the 20 year Project life is 409ppm of scandium.
The financial results of the feasibility study are based on a conventional flow sheet, employing continuous high pressure acid leach (HPAL) and solvent extraction (SX) techniques. The flow sheet was modeled and validated from METSIM modeling and considerable bench scale/pilot scale metallurgical test work utilising Nyngan resource material. A number of the key elements of this flowsheet work have been protected by the Company under US Patent Applications.
The feasibility study has been developed and compiled to an accuracy level of +15%/-5%, by a globally recognized engineering firm that has considerable expertise in laterite deposits and process facilities, as well as in smaller mining and processing projects, and has excellent familiarity with the Project location and environment.Nyngan Scandium Project - Feasibility Study Financial Highlights