Hastings Rare Earth Scoping Study Shows Potential of WA Mine

Australian miner Hastings Rare Metals' Heavy Rare Earth Project in Western Australia could rank as one of the world's top heavy rare earth projects after a scoping study underlined the project's massive rare earths content as well as potential economic returns for the company.

Located in the Kimberley Region of Western Australia, the Hastings Heavy Rare Earth Project contains 62,500 tonnes of total heavy rare earth oxide resource, making it among the top 10 in the western world.

The scoping study indicated the Hastings Heavy Rare Earth Project could yield a 36-million tonne rare earth JORC resource that is possible to simple open cut mining. The mine's projected lifespan could last up to 15 years. It could turn in 150 tonnes of dysprosium oxide and 1,000 tonnes of yttrium oxide, based on a mining rate of 1 million tonnes.

Both yttrium and dysprosium have been identified and included in the U.S .Department of Energy's critical supply list inthe short and medium terms.

With this, annual net cash flow into the company is expected to surpass $150 million a year. Based on assumptions, the project's net present value exceeds $500 million. Capital payback period is expected at less than 5 years.

The project has an extremely high proportion of heavy rare earth oxides, 85 per cent, of total rare earth oxide ratio, along with a relatively high heavy rare earth oxides content of 0.18 per cent compared with other projects.

Currently, Hastings boasts of a resource of 36.2 million tonnes at 0.21 per cent total rare earth oxides, including 85 per cent heavy rare earth oxides, 0.35 per cent niobium and 0.89 per cent zanthium.

In addition, it also contains tantalum and hafnium, which could add greater value to the project.

Global demand for heavy rare earths has been on the rise, growing more than 8 per cent over the past 3 years.