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Corporate Spotlight

Pensana Metals Ltd is targeting a globally significant NdPr deposit at the Longonjo NdPr Project.
Longonjo is located close to major transport links and infrastructure which is the key to project development.
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PRELIMINARY FEASIBILITY STUDY

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Preliminary Feasibility Study

ASX Announcement 15 November 2019


Pensana Metals Ltd (ASX: PM8) is pleased to provide the results of the Preliminary Feasibility Study (‘‘Study’’) for the Longonjo NdPr Project (“Longonjo Project”) located in an infrastructure rich region of Angola. 


The Study has been coordinated by Wood Group and is based on open pit mining and two‐phase development of a 2 million tonnes per year processing plant and associated infrastructure, producing on average 56,000 tonnes per year of NdPr concentrate for export.


The Study supports a sustainable operation with initial capital costs of approximately US$131 million and strong cashflows from the first year of production.


Cautionary Statement 

The Study capital costs are prepared to an overall accuracy of ‐15% +35% by Wood and are based on the material assumptions outlined in Table 1 following and elsewhere in this report.


The Mineral Resources underpinning the production target have been prepared by Rodney Brown of SRK Consulting (Australasia) Pty Ltd, who is a competent person in accordance with the requirements of the JORC Code (2012). 


The production target and forecast financial information in this report are based on both Indicated Mineral Resources (80%) and Inferred Mineral Resources (20%). There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target and forecast financial information will be realised.


Nonetheless, the Company believes there are reasonable grounds for the inclusion of production target and forecast financial information in this report based on Inferred Mineral Resources for the following reasons:


 The viability of the project is underpinned by initial production from Indicated Mineral Resources and the payback period is based solely on Indicated Mineral Resources. Inferred Mineral Resources are not the determining factor in the project's viability.  The Company hastaken a conservative view in limiting the amount of Inferred Mineral Resources in the production schedule to under 20% of the total amount of Inferred Mineral Resources available and that is contained within an optimised economic pit shell.  The historic conversion by the Company of Inferred Mineral Resources to Indicated Mineral Resources by infill drilling and the consistent and disseminated nature of the mineralisation, which occurs as a thick horizontal blanket at surface at surface suggests that this factor is a conservative conversion factor.  The Company has contracted further infill drilling that is scheduled to commence in November 2019 and is aimed at demonstrating the conversion of additional Inferred to Indicated Mineral Resources.  The supporting studies are based on extensive testwork and research completed to a high level of detail by a competent group of consultants. 


The Company advises that the Study is based on technical and economic studies not yet sufficient to support the estimation of Ore Reserves. There is no certainty that further exploration work and economic assessment will result in the eventual conversion of Mineral Resources to Ore Reserves or that the production target itself, assumptions used in the Study and resulting economic outcomes will be realised.


The stated production target is based on the company’s current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met. 


Engineering studies support capital and operating cost estimates and are based on standard extraction and processing techniques. Non‐binding discussions are underway with interested partiesfor offtake of planned production. Discussions with third party infrastructure providers are underway. Extensive environmental baseline studies have been completed and no social, environmental, legal or regulatory impediments to development have been identified.


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PENSANA METALS TO RE-DOMICILE

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Pensana Metals to re‐domicile to the United Kingdom 

ASX Announcement 1 November 2019 


Pensana Metals Limited (ASX: PM8) (‘Pensana’ or the ‘Company’) is pleased to advise that it proposes to re‐domicile in the United Kingdom in January 2020, subject to certain conditions including the receipt of shareholder and regulatory approvals.


The re‐domiciling of the Company will be undertaken pursuant to an Australian Scheme of Arrangement (Scheme), in which the Company’s shareholders will exchange their existing shares in   the Company for shares (held in the form of CHESS Depositary Interests (CDIs)) in Pensana Rare Earths Plc (Pensana UK), a newly incorporated special purpose public limited company established under the laws of England and Wales.    Pensana and Pensana UK have today entered into an implementation agreement in connection with the Scheme and its implementation, a copy of which is attached to this announcement.  Upon the Scheme becoming effective, Pensana UK will become the new parent company of the Pensana Group and will be listed on the ASX. Pensana UK also intends to make applications for admission to the standard listing segment of the Official List of the Financial Conduct Authority and for trading on main market for listed securities of the London Stock Exchange (see ASX announcement 2 April 2019) subject to the necessary regulatory approvals. The re‐domicile will not result in any material changes to the Company’s assets, management, operations or strategy.


Upon the Scheme becoming effective: 

  • Each shareholder of the Company (other than certain excluded foreign shareholders) will receive one Pensana UK CDI for every one share held in the Company (such that the Company's capital structure is replicated by Pensana UK). 
  • Pensana UK will become the holder of all the issued shares in the Company. 
  • The Company will be delisted from the ASX and will become a wholly‐owned subsidiary of Pensana UK. 
  • In connection with the Scheme, Pensana UK will list on the ASX and Pensana UK CDI holders will be able to trade their CDIs on the ASX. 
  • As stated above, the re‐domicile will not result in any material changes to the Company’s assets, management, operations or strategy.


The Scheme is conditional upon, amongst other conditions, the approval of Pensana shareholders and the approval of the Court.


The Board has engaged an independent expert to assess if the Scheme is in the best interest of the Company's shareholders.  A report prepared by the independent expert will form part of the Scheme Booklet, which will contain detailed information regarding the Scheme. Pensana encourages its shareholders to read the Scheme Booklet carefully.


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QUARTERLY

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Quarterly Activities Report For the Period Ended 30 June 2019 

ASX Announcement 30 July 2019 


Pensana Metals Ltd (ASX: PM8) (the Company or Pensana) is pleased to present its quarterly activities report for the period ended 30 June 2019.


The Quarter was an active one with the appointment of ex Anglo American mining executive  Tim  George  as  CEO,  a  $5  million  placement  to  institutional  investors  in London  and  significant  progress  on  the  technical  work  programmes  for  the Preliminary Feasibility Study into the development of the Longonjo NdPr Project in an infrastructure rich part of Angola.  


Highlights 

  • PFS on track for completion September 2019. 
  • Spectacular high grade NdPr drill results reported from the infill diamond drilling  programme  into  the  weathered  zone identified  for immediate mining; 
  • In  addition,  broad  zones  of  high‐grade  fresh  rock  mineralisation identified  immediately  below  the  weathered  zone  has  added  a  new dimension to the project’s development potential; 
  • The drill programmes for the PFS studies have been completed however with further drilling there remains considerable potential to extend the resource  inventory  both  in  the  fresh  rock  immediately  below  the weathered zone and also in the exploration targets defined around the margins of the carbonatite.   
  • Advisors  appointed  for  a  standard  listing  on  the  Main  Board  of  the London Stock Exchange later in the year. 
  • Successful $5 million placement completed to institutional investors


Technical Report

A series of technical programmes to support the Preliminary Feasibility Study for the development of an open pit mine and processing plant at the Company’s 84% owned Longonjo NdPr Project were in full swing during the Quarter.


The  Company  also  completed  the  registration  of  the  project  with  the  Angolan Ministry  of  Environment  and  commenced  baseline  environmental  and  social studies. The  registration is an important  first step  towards  the permitting of  the project with the Environmental and Social Impact Assessment (ESIA) study being a major requirements for a mining licence application for Longonjo. 


Drilling Programmes 

Some  particularly  high  grade  NdPr  intersections  were  returned  from  reverse circulation  (RC)  and  diamond  core  drilling  programmes  completed  during  the Quarter to provide samples and data for the PFS.  


Above: Plan view of the location of assay results received during the Quarter from RC and diamond drilling  over  the  February  2019  Mineral  Resource  block  model  for  the  weathered  mineralisation  coloured  by  NdPr  grade.  The  numerous  open  positions  with  potential  for  extensions  to  known mineralisation are indicated. 


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FINAL RC DRILL RESULTS

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Final RC drill results confirm and extend high grade NdPr mineralisation 

ASX Announcement 24 June 2019 


Pensana Metals Ltd (ASX: PM8) is pleased to report the final results from the recent infill and exploration reverse circulation (RC) drilling programme at the Longonjo NdPr Project located in an infrastructure rich region of Angola. 


The results have confirmed the continuity of high-grade weathered mineralisation from surface. The infill RC drilling was completed to support a revised Mineral Resource estimate for the high-grade weathered zone mineralisation at Longonjo.


An updated Mineral Resource estimate has commenced in support of the Preliminary Feasibility Study which is scheduled for completion in September 2019.


Exploration drilling on the southern margin of the carbonatite has identified a thick zone of weathered mineralisation which remains open along strike for 550 metres to the east and requires further drilling to evaluate its full potential.


Executive Director Dave Hammond commented: 


“These high grade NdPr intersections confirm the continuous nature of the near surface blanket of weathered zone NdPr mineralisation in the area targeted for initial open pit mining in the Preliminary Feasibility Study. 


The results from the exploration holes are significant as they add further proof of the existence of arcuate mineralised ring dyke structures around the margins of the circular carbonatite. 


Several kilometres of this prospective contact zone have yet to be drill tested and offer further upside potential to the weathered zone mineralisation at Longonjo.” 


Results highlights 

Infill RC drilling returned high grade intersections from surface including:


Drill hole - Intersection* 

LRC159: - 8 metres at 7.66% REO including 1.39% NdPr from surface 

LRC161: - 12 metres at 5.12% REO including 0.91% NdPr from 6 metres


Exploration drilling along the southern margin of the carbonatite intersected a deep zone of weathered mineralisation including: 


Drill hole - Intersection* 

LRC172: - 22 metres at 4.26% REO including 0.86% NdPr from 48 metres 

LRC173: - 10 metres at 4.07% REO including 0.73% NdPr from 16 metres


*NdPr = neodymium – praseodymium oxide. REO = total rare earth oxides. Intersections reported at a +0.4% NdPr lower grade cut off. See Table 1 for details of all new results, including wider intersections at a +0.2% NdPr cut


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BOARD

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Mr. Paul Atherley Chairman
MrAtherley is a Mining Engineer from Imperial College London and has held numerous senior executive and board positions during his career. MrAtherley has developed strong connections within Chinese business, industry bodies and senior government officials, including the most senior levels of the state owned energy companies.

Mr. David Hammond Chief Operating Officer
Geologist with over 25 years international experience including 7 years as Technical Director with Peak Resources Ngualla
Rare Earth Project, Tanzania.

Mr. Mark Hohnen Non Executive Director
Founding Executive Chairman of Kalahari Resources Plc listed on AIM in 2006 for £15million and subject to a £651million takeover in 2012.

Mr Neil MacLachlan Non Executive Director
Internationally experienced Investment Banker, Funds Manager and PublicCompany Director. Director of Kalahari Minerals Plc and also Extract Resources which was also subject to a takeover, for US$2.2billion in 2012.

Mr. Scott Mison Company Secretary / Chief Financial Officer
Chartered Accountant with over 20 years experience in corporate and operations across Australia, UK, Central Asia, Africa
and the US.


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