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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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Tapping into growing electric vehicle magnet mark

PENSANA IN DISCUSSIONS

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Pensana in discussions to list on London Stock Exchange 

ASX Announcement 2 April 2019 


Pensana Metals Limited  (ASX:PM8)  (“Pensana” or “the Company”) announces that the Company intends to undertake an investor roadshow in London in the week starting 8 April 2019, ahead of a planned listing on the Main Board of the London Stock Exchange by the end of 2019.


Discussions  have  already  commenced  with  financial  advisors,  and  further announcements will be made in due course.


Pensana is developing the Longonjo NdPr mining project, which is located 60 km west  from  Angola’s  second  city,  Huambo  and  only  3  km  from  the  newly upgraded Benguela rail line that runs to the Atlantic port of Lobito. NdPr is a vital component of all EV drive trains.


The  Company  recently  announced  a  substantial  upgrade  of  the  Mineral Resource  estimate  at  the  Longonjo  deposit  to  an  Inferred  Resource  of  240 million  tonnes  at  1.60%  rare  earths  oxides  (“REO”)  including  0.35%  NdPr  for 3,850.000  tonnes  of  REO  including  840,000  tonnes  of  NdPr  (ASX  report,  19 February 2019).


Longonjo ranks as one of the world’s largest and highest grade NdPr deposits at a time when demand for NdPr in electric vehicles is taking off.


The  Company  notes  the  renewed  interest  in  the  rare  earth  sector  following Australian conglomerate Wesfarmers Limited’s A$1.5 billion unsolicited cash bid for  Lynas  Corporation  (ASX:LYC)  –  the  world’s  only  non‐Chinese  producer  of NdPr.  


This bid  follows  the  recent  announcement  that  Fidelity,  one  of Lynas Corporation’s major institutional shareholders, has recently accumulated a 5% stake in Pensana.


Share Consolidation  


The  Company  also  intends  to  undertake  a  consolidation  of  securities  on  the basis  of  10  existing  shares  for  1  new  share  (10:1),  subject  to  approval  by shareholders  at  a  General  Meeting  (GM)  to  be  held  in  May  2019.  The consolidation has been proposed  to  reduce  the number of shares on issue  to approximately 121 million, creating a more efficient capital structure. Further details of the proposed consolidation will be provided in the Company’s notice of meeting for the GM.


A copy of the Company’s latest presentation is  following and available on the Company’s website www.pensanametals.com 


Click here to view the full announcement

EXPEDITED DEVELOPMENT

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Wood  Group  appointed  to  execute  PFS  for  the  expedited development of the Longonjo NdPr Project 

ASX Announcement 14 March 2019 


Following  the  recent  Mineral  Resource  upgrade  Pensana  Metals  Limited (ASX:PM8)  is  pleased  to  announce  that  it  has  appointed  the  international engineering company Wood Group to execute a Preliminary Feasibility Study (PFS) for the expedited development of the Longonjo NdPr Project.  


The  study  will  focus  on  the  delivery  of  a  low  capital  cost  open  pit  mining operation and exporting flotation concentrates to customers in China via the recently  upgraded  Benguela  rail  line  and  the  Atlantic  deep‐water  port  of Lobito.


Discussions with potential financiers have commenced and it is expected that a financing package will be finalised to coincide with the completion of the PFS (scheduled for September 2019).


The Company is of the view that given the work that has been completed to date and the relative simplicity of the operation, following the completion of a favourable  PFS  it  should  be  possible  to  move  immediately  to  Front  End Engineering  Design  (FEED)  and  Engineering  Procurement  Construction Management (EPCM).  


Pensana Metals, Chief Operating Officer Dave Hammond commented: 

“The development concept is very straight  forward. We are looking at a low capital cost, shallow open pit and flotation operation producing a high‐grade concentrate  for  export  to  China  via  the  adjacent  major  rail  and  port infrastructure.


Last month’s substantially increased Mineral Resource estimate has enabled us to bring forward the PFS. 


Our aim is to get into production and build our customer base at a time when EV and wind turbine manufacturers are driving the increasing demand for NdPr magnets for electric motors and Chinese rare earth processors are looking for additional low‐cost feedstock.” 


Technical Report 

Pensana have appointed international engineering company Wood Group  to execute  a  Preliminary  Feasibility  Study  to  investigate  an  opportunity  to  fast track  the  Longonjo  NdPr  Project  into  production.  Wood  Group  previously undertook the Scoping Study for Longonjo and have an experienced rare earth mining and development team.


The decision to expedite the development studies follows the completion of a large,  high grade Mineral  Resource estimate  for  the  Company’s  84%  owned Longonjo NdPr Project in Angola (ASX report, 19 February 2019). 


The  PFS  base  case  for  the  initial  development  of  Longonjo  will  consist  of  a shallow open pit mine and flotation plant on site.


The development will leverage off the advantage of the modern rail and port infrastructure already in place on  the projects doorstep  to ship a high‐grade flotation concentrate to customers China.


Longonjo development concept for Preliminary Feasibility Study 

Above: Pensana has identified a practical path to early development that aims to position Longonjo as an important  supplier  of NdPr  raw materials  in  time  to meet  looming  demand  from  the electrification  of vehicles

Click here to view the full announcement

TO EXECUTE PFS

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Wood  Group  appointed  to  execute  PFS  for  the  expedited development of the Longonjo NdPr Project 

ASX Announcement 12 March 2019 


Following  the  recent  Mineral  Resource  upgrade  Pensana  Metals  Limited (ASX:PM8)  is  pleased  to  announce  that  it  has  appointed  the  international engineering company Wood Group to execute a Preliminary Feasibility Study (PFS) for the expedited development of the Longonjo NdPr Project.  


The  study  will  focus  on  the  delivery  of  a  low  capital  cost  open  pit  mining operation  treating  2 million  tonnes  a  year  and  exporting  120,000  tonnes  of flotation concentrates a year to customers in China via the recently upgraded Benguela rail line and the Atlantic deep‐water port of Lobito.


The Company is targeting a capital cost of the Project in the order of US$100 million. 


Discussions with potential financiers have commenced and it is expected that a financing package will be finalised to coincide with the completion of the PFS (scheduled for September 2019).


The Company is of the view that given the work that has been completed to date and the relative simplicity of the operation, following the completion of a favourable  PFS  it  should  be  possible  to  move  immediately  to  Front  End Engineering  Design  (FEED)  and  Engineering  Procurement  Construction Management (EPCM).  


Summary 

  • The PFS will be based on the development of the high‐grade weathered zone mineralisation, which the company believes has potential to support over 10 years of mine life at an average mined grade of over 4% rare earth oxide and 0.85% NdPr, utilizing approximately 10% of  the  total Mineral Resource estimate. An infill drilling programme is under way to upgrade part of the Inferred Resource estimate to the Indicated category for the purpose of the study. 
  • The base case of the PFS has been increased from 1.5 to 2 million tonnes a year shallow open pit mining and flotation operation producing around 120,000  tonnes  of  high‐grade  concentrate  for  export  to  customers  in China via the recently upgraded Benguela rail line and the Atlantic port at Lobito. 
  • Hong Kong based commodity marketing consultants Conrad Partners has advised that the Company can expect to receive concentrate sale prices in  excess  of  US$2,000  per  tonne  CIF  China  (based  on  the  current US$45,000 per tonne NdPr oxide price).   
  • The PFS will utilise the flotation flowsheet developed during the previous Scoping  Studies.  (ASX  Announcement  Longonjo  Magnet  Metal  Project Study Update RVY 6 December 2017). The Company is working with two established Chinese technical institutes, both highly experienced in rare earth processing, with a view to enhancing the flotation performance and high‐grade concentrate production.   
  • The Company is targeting a capital cost in the order of US$100 million. The Project  benefits  from  the lack  of a mining  pre‐strip, a low  strip  ratio, a conventional  flotation  process  plant,  an  adjacent  water  borefield,  a nearby  low  cost  hydro‐electric  power  supply,  available  labour  and  in particular excellent transport infrastructure.   
  • Subsequent studies will focus on an expansion of the 2 million tonnes per annum  operation  to  treat  additional  NdPr  mineralisation  from  the remaining 90% of this large deposit.


Pensana Metals, Chief Operating Officer Dave Hammond commented: 

“The development concept is very straight  forward. We are looking at a low capital cost, shallow open pit and flotation operation producing a high‐grade concentrate  for  export  to  China  via  the  adjacent  major  rail  and  port infrastructure. 


Last month’s substantially increased Mineral Resource estimate has enabled us to  bring  forward  the  PFS  and  increase  the  throughput  from  1.5  to  2 million tonnes per year. 


Our aim is to get into production and build our customer base at a time when EV and wind turbine manufacturers are driving the increasing demand for NdPr magnets for electric motors and Chinese rare earth processors are looking for additional low‐cost feedstock.” 


Click here to view the full announcement

INTERVIEW

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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.


(20min delay)
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