About Longonjo NdPr Project

Strategic and Focussed Vision for Longonjo

Pensana Metals is completing studies for a distinctly different, low cost development approach for Longonjo and to determine the potential of the project to become a globally significant supplier of raw materials to the expanding magnet metal market - a market driven by the electrification of transport and the drive to green energy generation.

The company has engaged world reknowned engineering firm Wood Group PLC to complete a presfeasaility study due in September 2019.

Longonjo is located only 4 kilometres from a modern rail line that leads directly into an Atlantic port. The potentially free dig, low waste to ore ratio and high grade nature of the surface mineralisation, together with its favourable location and transport infrastructure already in place distinguish Longonjo from other rare earth projects.

The Company’s vision is to leverage these unique advantages with the aim to rapidly develop a relatively low capital intensive, low technical risk, conventional open pit mine and on site beneficiation plant to produce a high grade mineral product for export.

 

Pensana Metals Ltd has a potentially world class NdPr project at Longonjo, located close to modern road and rail links to a new port development in the infrastructure rich country of Angola.

 

Long NdPr 11

 Figure 1. Location of Longonjo NdPr Project close to major transport links

 

Huge upgrade in Mineral Resource estimate sends Longonjo to the top of the world league 

(See ASX announcement of 19 February 2019 for further details)

 

Highly  respected international  mining  industry  consultants  SRK Consulting  have  reported  an  updated  inferred  Mineral  Resource estimate  of:

240 million tonnes at 1.60% REO including 0.35% NdPr for 3,850,000 tonnes of REO including 840,000 tonnes of NdPr

This new Mineral Resource estimate represents a more than seven‐fold increase in tonnes and contains well over four times the amount   of NdPr compared with  the maiden Mineral Resource estimate reported to  the ASX on 26 September  2017 at equivalent cut‐off grades. 

The deposit occurs as a blanket of soft weathered material averaging around  30 metres in thickness and up to 75 metres in places.

The highest grades occur from surface.The deposit remains open at depth and in a number of directions laterally.

The initial focus will be on the resource occurring within a cut off around .65% NdPr which totals 22.9 million tonnes at 4.16% REO and .86% NdPr   containing around 953,000 tonnes of REO including 197,000 tonnes of NdPr. 

Tables 1 to  3 below summarise the Mineral Resource estimate at a range of cut off grades, material types  and total rare earth oxide grades.

 

Table 1 and 2

 

table 3

*NdPr = neodymium+praseodymium oxide. REO = total rare earth oxides. A 0.1% NdPr cut  is applied. 

 

The weathered zone contains the most  favourable  NdPr  mineralisation  for  mining and  processing  due  to  its  high grades  from  surface and  forms a  thick  blanket of soft material extending up to 75 metres in depth. 

cross section

High grade near surface mineralisation

REsource diagram

As the plan above shows, the high grade, near surface mineralisation remains open in several directions, offering the potential for  further extensions to the Mineral Resource estimate with additional drilling. The Mineral Resource estimate was completed by independent mining  consultants SRK Consulting (Australasia) Pty Ltd and is reported in accordance with the JORC Code and Guidelines 2012

 

Infrastructure advantages

 

The Longonjo NdPr Project has an enviable location compared to many NdPr development projects, close to established infrastructure.

The Project lies just 4.3km from the sealed national highway and rail line that run from the port at Benguela 200km to the west, to the provincial capital of Huambo 60km to the east. A power transmission line from the Gove Dam hydroelectric power plant currently extends to Caala, 38km to the east of the Project.

Longonjo NdPr 4

 Figure 4. Longonjo is favourably located close to existing infrastructure that includes a sealed national highway and rail linking the Project to the deep water sea port at Benguela to the west, and the provincial capital of Huambo 60km to the east.

 

The location of the project close to established modern infrastructure is a major advantage to the practical and financial development of the Longonjo NdPr Project.

 

The refurbished National Highway EN260 runs 315km from Angola’s second largest city of Huambo through the municipality of Longonjo to the deep-sea port of Benguela/Lobito. The rehabilitation of the road was reported to have cost US$128 million.

The Benguela Railway was reconstructed between 2006 and 2014 by the China Railway Construction Corporation at a cost of US$1.83 billion employing 100,000 Angolans. The railway extends from Zambia through the Democratic Republic of Congo and services the ports of Benguela and Lobito on the Atlantic coast of Angola.

The railway is Cape gauge, 1,067 mm (3 ft 6 in), which is used by most mainline railways in southern Africa. The maximum design speed is 90 km per hour. The design capacity is 20 million tons of cargo and 4 million passengers per year. There are 67 stations and 42 bridges along the route of the railway.

The Angolan Government invested about US$2billion for the rehabilitation of the Lobito port.The dry dock, container terminal and ore terminal at the port of Lobito, in Angola’s Benguela province, cost an estimated US$1.247 billion. The container terminal is 414 metres long, the ore terminal has a 310-metre jetty and the dry dock is directly connected by road and rail to the port of Lobito and the Benguela Railroad, providing an area of 90,000 square meters.

Longonjo NdPr 5

Figure 5. Lobito Port infrastructure directly connects to the Benguela rail line

 

The Company looks forward to providing regular updates of the progress of the exploration programmes and the evaluation of this potentially world class NdPr Project.

 

 


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