Resource Estimates
Substantial work has been carried out in estimating the resources of the CLD, including a thorough validation of all geological, drilling and assay information, the development of a robust 3D geological model and the generation of a detailed resource model to JORC Code standards.
A comprehensive evaluation of the deposit has been completed by independent specialists Hellman and Schofield, resulting in a substantial upgrade in the resource to 7.7Mt at 12% for 917,000t REO
At a 4% REO cut-off grade, the resource estimate is as follows -.
Table 1: Mt Weld resource estimate - Central Lanthanide Deposit (4% REO cut-off)
|
Category |
Tonnes (Mt) |
Grade (% REO) |
Tonnes REO |
|
Measured |
1.2 |
15.6 |
186,000 |
|
Indicated |
5.0 |
11.7 |
583,000 |
|
Inferred |
1.5 |
9.8 |
148,000 |
|
Total |
7.7 |
11.9 |
917,000 |
Mining Studies
Independent mining experts Australian Mine Design and Development Pty Ltd (AMDAD) prepared preliminary pit optimisations, pit designs and mine schedules over the central part of the CLD. The work confirmed the simplicity and low risk of a mining operation, and the low overall strip ratio for the pit (SR 4.6:1). Due to the high ore grades, the ore production level is forecast to be relatively small, for example; production of 10,500 tonnes REO in the first year of operation will require 120,000 tonnes of ore to be processed. With current demand at 95,000 tonnes per annum the Mt Weld production will represent approximately 11% of the global market. Based on proposed ore treatment options, current Reserves were calculated by AMDAD as 2.1 million tonnes @ 15.5% REO containing 321,000 tonnes REO. This is about 35% of the available resources; Lynas confidently expects that further ore processing studies and inclusion of lower grade ore will result in a mine life in excess of 20 years.
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