REG-Pensana Plc: EPCM and Updated Ore Reserve estimate

PensanaAnnouncement

02/04/2025 07:04

THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION

Pensana Plc

("Pensana" or the "Company")

 

EPCM and Updated Ore Reserve estimate

 

Pensana Plc (PRE.LSE) is pleased to announce an updated ore reserve estimate
and an update on the project delivery for the Longonjo rare earth project in
Angola.

 

The highlights are as follows:
* The updated JORC compliant ore reserve grade has increased to 3.04% TREO
containing 139,000 tonnes of NdPr oxide for a mine life of over 20 years
making it one of the largest and highest-grade undeveloped magnet metal
projects worldwide.
 
* The plant will process 800,000 tonnes per annum with a feed grade for the
first five years of 4.12% TREO with a very low strip ratio of 0.25 tonnes of
waste for each tonne of ore mined.
 
* Benefitting from the excellent infrastructure in the region the capital cost
at US$217 million, including contingency, is one of the lowest capital
intensities for a rare earth project of this scale.
 
* With the site infrastructure and access road already in place and the
mobilisation of contractors underway the main construction of the modularised
process plant is expected to commence in the coming weeks.
 
* Initial production of 20,000 tonnes per annum of clean, highly marketable
mixed rare earth carbonate (MREC) is due to commence in late 2026.
 
* The Company has received considerable interest in offtake for the stage one
production of 20,000 tonnes per annum of MREC and has received expressions of
interest in the proposed expansion tonnage of 40,000 tonnes per annum.
 

The technical due diligence carried out by independent technical consultants
on behalf of the lender consortium has reported the following updated JORC
compliant ore reserve estimate.

 

 

 

 

 

 ORE RESERVE CATEGORY  TONNES       TREO GRADE   NdPr GRADE   CONTAINED TREO   CONTAINED NdPr   
                        (million)    (%)          (%)          (tonnes)         (tonnes)        
 Proved                11.69        3.49         0.73         407,981          85,337           
 Probable              9.84         2.51         0.55         246,984          54,120           
 TOTAL                 21.54        3.04         0.65         654,965          139,457          

Note: Independent consultants “A&B Global Mining pty ltd” (ABGM) completed
the ore reserve using the guidelines of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012
Edition).

 PRODUCTION ASSUMPTIONS                      UNIT            BFS         
                                             years           20          
 Average grade                               %               4.12% TREO  
 Average strip ratio (LOM) tonnes:tonnes     waste:ore       0.25        
 ROM throughput (design capacity)            ktpa dry (ROM)  850         
 MREC refinery production (design capacity)  tpa dry (MREC)  20,000      
                                                                         
                                                                         

 

 

 CAPITAL COSTS                                    UNIT   BFS    
 Recovery Plant                                   US$ m  75.5   
 Concentrator Plant                               US$ m  37.8   
 Plant Common Area                                US$ m  14.7   
 Mine, Plant and Project Infrastructure           US$ m  25.4   
 Indirect Costs                                   US$ m  22.6   
 TSF                                              US$ m  7.2    
 Miscellaneous                                    US$ m  13.3   
 Contingency (10.23%)                             US$ m  20.1   
 Total Capital Pre-production                     US$ m  216.5  
 Average annual sustaining capital (from year 6)  US$ m  5.7    

 

 

Update on Engineering Procurement and Construction Management (EPCM)

The project delivery is being undertaken by Mining Consultancy Company Limited
(MCC) an experienced project management team with a track record of delivering
projects in Angola, working with ADP Holdings Pty part of Lycopodium group
(ADP) a specialist in modular construction with extensive experience in
Angola, and ProProcess Engineering (Pty) Ltd (ProProcess) which has expertise
in delivering modular process units across Africa.

The team has confirmed pricing and manufacturing schedules of all long lead
equipment items including the ball mill, acid plant and thickeners.
* Approximately 70% of the equipment packages have been tendered and priced
externally including all of the Tier 1, 2 and 3 packages.
 
* The design, costing and contractor selection for the site infrastructure,
along with the provision of bulk services, have been completed and the
contractors mobilised.
 
* Modularisation of the processing plant has been facilitated to enable
efficient site erection and to allow for pre-commissioning testing before
despatch to site.
 
* The services to be provided by the Port of Lobito, Caminho de Ferro de
Benguela, Lobito Atlantic Rail Consortium, and the national power company RNT
have been extensively defined and negotiated.
 
* The specialist equipment manufacturers with a focus on long lead time plant
equipment have been identified, pre-selected and included in the design
process, including the milling units, flotation columns, calciner, acid plant,
reagent plants and thickeners.
 
* Global logistics company Deugro has been engaged to consolidate and provide
an “umbrella" service for the global procurement activities.
 
* Environmental Management Plans have been initiated and will work alongside
the operational readiness programmes.
 
* A recruitment campaign in Angola has commenced targeting the availability of
local skill sets, which will allow confidence in the delivery of an effective
operations readiness training programme during the construction phase.
 

About Longonjo

Pensana has spent over US$70 million over the past six years on exploration,
technical and environmental studies on the Longonjo rare earth project in the
Huambo district of Angola approximately 350 kilometres Southeast of the
capital Luanda.

The Company has successfully delineated a near surface JORC compliant reserve
of 22 million tonnes grading 3.04% TREO containing 139,457 tonnes of NdPrO
making it one of the world’s largest undeveloped magnet metal rare earth
deposits with a mine life of over 20 years.

 

The electrification of motive power is arguably the biggest energy transition
in history and needs rare earths for permanent magnets.

Initial production will be 20,000 tonnes of a highly marketable clean MREC. A
proposed second phase expansion will see production increase to 40,000 tonnes
per annum of MREC representing around 5% of the world’s production capable
of being converted into permanent magnets for electric vehicles and offshore
wind turbines.

 

The Company is committed to developing the Longonjo mine to the very best
international standards with the highest level of community engagement and
have published a blueprint for sustainable rare earth development which is
available on our website. Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf
(https://pensana.co.uk/wp-content/uploads/2022/09/Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf)

 

The team’s efforts were recognised in 2022 when Pensana received an award by
S&P Green Bond Rating Agency CICERO and more recently, were awarded a Gold
Medal by EcoVadis, a leading sustainability ratings provider, placing it among
the top 5% of the companies assessed.

 

It has been independently estimated that the Longonjo mine, with access to
hydroelectric power and direct access to the Atlantic Port of Lobito via the
Lobito Corridor rail line will save over 4 million tonnes of CO2 emissions -
the carbon equivalent of replacing 1.5 GW of fossil fuel electricity
generation.

 

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No.596/2014. Upon the publication of this announcement via a
Regulatory Information Service, this inside information will be considered to
be in the public domain. The person responsible for arranging for the release
of this announcement on behalf of the Company is Paul Atherley, Chairman.

–      ENDS –

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer

 



Copyright (c) 2025 PR Newswire Association,LLC. All Rights Reserved