GWMG Reports Positive PEA for Steenkampskraal
GWMG is a Canadian company head-quartered in Saskatoon, Saskatchewan, and is listed on the TSX Venture Exchange.
The planned Steenkampskraal mine and rare earth chloride plant are located about 350 km north of Cape Town, South Africa. The project is based on a high-grade, narrow-vein underground mine that was successfully operated by Anglo American to recover thorium between 1952 and 1963. The planned mine is esti-mated to hoist approximately 165 mt/d of run-of-mine material.
The PEA is based 278,000 mt of in-ferred mineral resources at an average grade of 15.2% total REOs and 176,000 mt of indicated mineral resources at an average grade of 18.2% total REOs, each using a 1% total REOs cut-off grade. The resource estimates included the historic mine area and exploration areas to the east and west of the mine, as well as historic tailings.
Capital costs are estimated at C$175.55 million, including pre-produc-tion and post-production capital costs for the mine and rare earth chloride plant, cap-ital costs for the separation plant, sustain-ing capital, and a contingency.
Production is projected to start within 24 months of the completion of required project financing at a design capacity of 5,000 mt/y of contained REOs. Production of separated REOs is projected to start within 12 months of the commencement of rare earth chloride production at a de-sign capacity of approximately 5,000 mt/y of separated REOs.