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August 2015
MODERN MINING
31
NIOBIUM
is the current size of Magris Resources’ Niobec
operation in Canada, thus allowing useful com-
parative analysis.
With the success achieved in the PFS in
both mill feed grade and metallurgical recover-
ies, the initial ferroniobium production from a
2 Mt/a plant now approximates to 8 to 10 % of
world production. For this reason, and to sim-
plify financing arrangements, the FS has been
scoped so as to achieve a more modest entry
into the market (i.e. throughput commencing
at 1,3 Mt/a). The FS will allow for expansion
of production as demand grows. The base case
examined in the PFS estimated an initial capi-
tal expenditure of US$158 million but a staged
approach will reduce this figure to US$123
million.
The FS is on track for completion in the
fourth quarter of 2015 with key milestones
including: the finalisation of the geotechnical
drilling campaign for the plant foundations
and tailings facility area completed in June
2015; the export of geotechnical samples to
Johannesburg, with two of the three batches
already at the laboratory and test work having
started; and finalisation of the mineral resource
model for use in pit optimisations.
On the metallurgical side, mini pilot plant
tests on approximately 5 tonnes of RC chips
have been completed at SGS Lakefield in
Canada with the preliminary results confirm-
ing the robustness of the PFS flowsheet. SGS
is now following up with larger-scale tests in
a 75-t integrated pilot plant that was entering
operation as this article was being prepared.
The mining licence renewal documents
have been submitted to the Tanzanian Ministry
of Energy and Minerals and the ESIA docu-
mentation has been submitted to the National
Environmental Management Council. These
authorisations are expected to be completed in
the third quarter of this year.
Offtake discussions with traders and end-
users are progressing well, says Cradle. The
discussions are focused on optimising pricing
and volume and both end-users and traders in
the USA, Europe and Asia are being targeted.
Two rigs were mobilised to site in June 2015
for drilling of geotechnical and hydrological
holes. One rig was dedicated to drilling the 13
geotechnical diamond holes (typically <25 m
deep) to enable characterisation of the ground
beneath the proposed process plant and tailings
facility; this work has now been completed.
The other rig is focused on drilling hydrologi-
cal observation holes in the area surrounding
the proposed Tailings Storage Facility (TSF).
Consultants from SLR Consulting (Africa) and
SRK Consulting (Australasia) have been on site
to supervise the logging and preparation of
these samples.
“The Feasibility Study is progressing as
planned with a processing plant throughput of
1,3 Mt/a being selected for initial production
expanding to 2,6 Mt/a after five years,” says
Cradle’s MD, Grant Davey, commenting on the
progress of the project. “Preliminary financial
results calculated for a staged throughput sce-
nario continue to highlight that Panda Hill is
a world class mineral resource project. We are
actively collecting all the necessary field infor-
mation as well as preparing for the 75-tonne
pilot plant test so that we have all the techni-
cal information to complete the final Feasibility
Study. The appointment of Dennis Cooke is
instrumental in ensuring that the construction
and operational team is appointed and have
ownership of the Feasibility Study. Offtake
negotiations are progressing well and all licens-
ing approval applications have been submitted
to the government for assessment. The Cradle
team is focused on ensuring that Panda Hill is
the next world class niobium producer.”
Photos courtesy of Cradle Resources
View of Panda Hill. It is
located just 26 km from
the major regional centre
of Mbeya in south-western
Tanzania.
The base case
examined in the
PFS estimated
an initial capital
expenditure of
US$158 million
but a staged
approach will
reduce this figure
to US$123 million.