MBAC Fertilizer Corp. (TSX:MBC,OTCQX:MBCFF) announced the results from the preliminary economic assessment for its wholly-owned, Brazil-based Araxa rare earth oxide (REO)/niobium/phosphate project, commenting that the project is expected to start production in the first quarter of 2016 and will initially produce 8,750 tonnes of REO per year.
According to the press release, highlights include:
- The PEA is based on the current mineral resource estimate for the Araxá Project contained in the amended and restated technical report filed on August 31, 2012, comprising a combined measured and indicated mineral resource of 6.34 Mt at 5.01% TREO and an inferred mineral resource of 21.94 Mt at 3.99% TREO.
- Estimated production of 740 tonnes per annum of niobium oxide as a by-product in the first five years, growing to 1,832 tonnes per annum during Phase 3.
- Mine life of 40 years with significant resource expansion potential.
- Capital costs of US$406.05 million estimated for Phase 1, with an additional US$214.48 million estimated for the expansion required after the fifth year of operation.