Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes that Hastings Technology Metals (ASX: HAS) (“Hastings”) has announced that ore sorting test work has confirmed its suitability within the beneficiation process in delivering early gangue mineral rejection and a significant upgrade of rare earths material prior to the higher-cost processing steps across the Yangibana Rare Earths Project (“Yangibana”), in Western Australia’s Gascoyne region.
The ore sorting test results confirmed that the total rare earth oxide (TREO) recovery through the ore sorter is a linear function, where the lower the head grade, the higher the mass rejection becomes. It is, therefore forecast, based on the average content of alumina and silica for all Yangibana deposits, that 24% of the proposed crusher feed will be rejected by the ore sorters as waste at the expense of only 4% TREO volumes across the life of mine schedule (“LOM”).
- 26% upgrade to the life of mine total rare earths oxide (TREO) grade.
- 96% overall TREO recoveries after ore sorting.
- 24% upfront mass rejection of primary crusher feed, resulting in:
- 24% reduction of beneficiation plant reagent consumption.
- 24% reduction in required tailings storage facility size for the life of mine; and
- effective mitigation of the risk of mining dilution.
- Ore sorting test work continues to validate the positive impacts on the Yangibana process flowsheet:
- Engineering development is progressing to incorporate the ore sorting circuit into the beneficiation process flowsheet.
The variability test work program was completed testing 12 samples from across the Yangibana deposits. The performance of the ore sorters is closely linked to head grade, resulting in LOM mass rejection of 24% with a corresponding increase in average grade of TREO content of 26%.
The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/3bb7e431-691.pdf
Relevance to Cadence Minerals Holdings in the Yangibana Project:
Cadence is a 30% joint venture partner on 3 Mining Leases, 6 Exploration Licences of the Yangibana Project. Hastings is our 70% joint venture partner on these assets and owns 100% of the remaining portion of the Yangibana Project. Further detail on the asset and the resources and reserves on our joint venture lands can be found here
As stated in the Hastings announcement the effect of the results of the ore sorting test work is forecast to have a positive effect on the LOM. It is important to note, however, that currently a definitive feasibility study in November 2017, does not include Cadence’s joint venture interests and in addition Hastings current economic model does not include any costs or revenue ascribed to the 30% interest in the deposits held by Cadence.
Therefore, to assess the effect of the improvements announced by Hastings, we will have to await further updates which are specific to our joint venture areas.
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For further information:
|Cadence Minerals plc||+44 (0) 7879 584153|
|WH Ireland Limited (NOMAD & Broker)||+44 (0) 207 220 1666|
|Novum Securities Limited (Joint Broker)||+44 (0) 207 399 9400|
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identiﬁed by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding Cadence Minerals Plc’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reﬂect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of Cadence Minerals Plc. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with such forward-looking statements