is poised to be a leader in a dynamic
In the country of Namibia we are developing a significant exploration find that shows exceptional early results. The Lofdal Rare Earth Project comprises a 200 kmē carbonatite complex with exceptional heavy rare earth-enrichment (>80%), opening the door for the discovery of a world class heavy rare earth deposit.
After successfully raising CDN $28.75 million in our company IPO in April 2011, we immediately carried out an exploration drilling program and by the end of 2011 our team had selected their first target to develop into a 43-101 compliant mineral resource. In September 2012, we announced the first rare earth mineral resource for Lofdal with an exceptional level of 85% heavy rare earth enrichment. In October 2014, we announced the results of the preliminary economic assessment on the Area 4 of Lofdal which concluded that the Lofdal Project currently has the potential to produce an average of 1,500 tonnes per annum of separated rare earth oxides which would generate after tax cumulative cash flow of US$259M with a net present value10%of US$148M and an internal rate of return of 42%. The PEA indicates that there is considerable potential to expand the current mineral resource and recommends that additional drilling be carried out to provide for an extended mine life in conjunction with a six month prefeasibility study program.
The world needs rare earths to go green. With our discovery in Namibia, we see a world-class opportunity to realize that goal.