Namibia Rare Earths Inc.

Namibia Rare Earths Inc. is a Canadian public company focused on the accelerated development of its 100%-held Lofdal rare earth project in Namibia. Lofdal is an early-stage, district-scale exploration project with widespread rare earth mineralization. The property has demonstrated a potential for the discovery of multiple rare earth deposits, including deposits that are exceptionally enriched with heavy rare earths. The company has allocated 22,500m of diamond drilling towards the delineation of a mineral resource and is well funded to carry out its strategic development program.

Expert Comments:

"The release of Namibia Rare Earths Inc.'s preliminary economic assessment for the Lofdal project was a very positive step forward. The major host mineral is xenotime, which has been proven to lend itself to commercial rare earth element (REE) production. The PEA gives us a baseline to measure Lofdal relative to other projects. At $162M, the capex is extremely manageable and, just as important, the value of the concentrate the company aims to produce is heavily slanted toward the most critical REEs, including dysprosium and terbium. Namibia Rare Earths is a good example of a critical metals story that slowly continues to derisk itself and impress in the process. When sentiment in the space turns, it will be well positioned." read more >

"In Africa, Namibia Rare Earths Inc. may be the lowest cost mine of all to bring to production." read more >

"One RE company that I continue to look at favorably is Namibia Rare Earths Inc. The company has just completed a PEA for its Lofdal project that envisions an open-pit 1,500 tpd mine that will produce a concentrate consisting mainly of heavy rare earths. The PEA reported an after-tax IRR of 43% and NPV of US$147M at 10%. The PEA does use FOB base case prices that are nearly double current levels, which would be a problem if 98% of the rare earths were not heavy rare earths representing over 99% of the recovered value. A key aspect of the PEA is the plan to have separation done by parties with that capacity outside of China. One of these is Solvay, whose subsidiary Rhodia has a facility in France with surplus separation capacity. The other would be Molycorp, which has potential to develop heavy rare earth separation capacity at its facility in Estonia. Namibia Rare Earth's goal is to find a partner to fund and develop the Lofdal mine, as well as separate the mixed oxides. Securing such a deal will be the next milestone because the junior would prefer to use its remaining $6M to explore for additional HREO enriched zones and other critical metal deposits within the Lofdal carbonatite complex in Namibia." read more >

Nick Wells, Rare Earth Investing News (10/1/14)
"Namibia Rare Earths Inc. has released a preliminary economic assessment (PEA) of the Lofdal rare earths project, highlighting the project's impressive rate of return and its potential to grow its Africa-based mine. . .the PEA gave an estimate of 2.88 Mt of Indicated mineral resources yielding 9,230 tonnes of rare earth oxides, of which 7,050 tonnes are estimated to be heavy rare earth oxides."

"Namibia Rare Earths Inc.'s Lofdal project is an early-stage project, but its actual value based on current metal prices is pretty good. The strategic and HREO fractions of that resource are particularly strong and high in content. The question is how the company seeks to develop it, and whether it takes on a strategic partner. The actual potential for a resource to be mined and shipped to a third-party concentrate refining company is really where the strength of any project lies. Lofdal is not a particularly large resource in tonnage, but its value, considering its high concentration of heavy and strategic REEs suggests quite an interesting business model, whereby very little refinement would be done onsite. . .Namibia is one of my favorites because of the actual strength of its resource." read more >

"Namibia Rare Earths Inc. is also on my radar. We don't know a lot about the economics yet, but if an investor is patient and willing to take some risk, it is worth considering. . .the company has an attractive deposit and is an earlier-stage play that surprised a lot of people with some of its metallurgical results. Namibia's ability to produce a xenotime concentrate and potential catalysts from a preliminary economic assessment that is now underway and metallurgical optimization are all differentiators. There's a lot to learn here, but a lot of potential upside as well." read more >

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Investing Highlights
Low capex opportunity for HREE outside of China
Simple mineralogy (xenotime) amenable to conventional separation technologies
Potential for multiple discoveries
Namibia Rare Earths Inc. Content