Namibia Critical Metals receives Environmental Clearance Certificate for mining at Lofdal Heavy Rare Earth Project, Namibia
Namibia Critical Metals Inc. [TSXV: NMI; OTCQB: NMREF] reported that it has received the renewal of its Environmental Clearance Certificate for mining activities on Mining License 200 covering the Lofdal Heavy Rare Earth Project, Namibia.
The Environmental Clearance Certificate allows the company to conduct exploration, processing and mining activities on its Lofdal tenement and is valid until September 2027.
The company is further pleased to announce significant progress of its Pre-Feasibility Study for the expanded project ‘Lofdal 2B-4’. The scope of the PFS was extended to undertake sorting test work with recently advanced XRF and XRT sorting to upgrade lower grade run-of-mine material. Further, trade-offs between electricity supply studies with variable proportions of photovoltaic, battery and diesel back-ups, grid connection and electricity generation in an own acid plant are currently being assessed to optimally supply the mining operation with a sustainable mix of power. Completion of this PFS is scheduled for Q1 2025.
Darrin Campbell, President, stated: “We are very pleased to receive the environmental clearance certificate as the prefeasibility study for the new large mine project ‘Lofdal 2B-4’ is near completion which will be followed by increasing ground activities at Lofdal. I am also very excited about the opportunities we see with the significantly advanced sorting technologies which have recently improved due to the introduction of AI applications. These technologies may help to bring lower grade material back into the processing stream. This is important from a sustainability point as the currently regarded ‘stockpile’ material below the cut-off point for the planned flotation plant makes up about a third of the mined mineralized material.”
Namibia Critical Metals is developing the Tier-1 Heavy Rare Earth Project, Lofdal, a globally significant deposit of the heavy rare earth metals dysprosium and terbium. The Lofdal Project is fully permitted with a 25-year Mining License and is under a Joint Venture agreement with Japan Organization for Metals and Energy Security (JOGMEC).
Namibia Critical Metals owns a 95% interest in the Lofdal project with the remaining 5% held for the benefit of historically disadvantaged Namibians. The terms of the JOGMEC joint venture agreement with the company stipulate that JOGMEC provides C$3,000,000 in Term 1 and C$7,000,000 in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a further C$10,000,000 of expenditures to earn an additional 10% interest. JOGMEC can also purchase another 1% for C$5,000,000 and has first right of refusal to fully fund the project through to commercial production and to purchase all production at market prices. The collective interests of NCMI and historically disadvantaged Namibians cannot be diluted below a 26% carried working interest upon payment of C$5,000,000 to JOGMEC for the dilution protection. NMI may elect to participate up to a maximum of 44% by funding pro rata after the earn in period is completed.
To date, JOGMEC has completed Term 2 and earned a 40% interest by reaching the C$10 million expenditure requirement. Total approved project funding to date is C$14,541,000 of the $20,000,000 Earn-In requirement to reach 50% interest.