Mine Overview

Steenkampskraal is a high-grade, hard-rock, monazite vein deposit with a resource that has recently been increased by extensive drilling work, as reported in the mine’s NI 43-101 compliant Mineral Resource Estimate and Mineral Reserve Statement. The underground in-situ average grade is 14.5% RoM. There are also surface tailings stockpiled as a result of previous mining and processing operations with a grade of about 7% TREO.

Steenkampskraal Monazite Mine (SMM) prepared an EMP that was approved by the Department of Mineral and Petroleum Resources (DMPR) in 2010. This EMP forms an integral part of the Mining Right and subsequently updated.

The current explored and delineated orebody reports a NI 43-101 compliant Mineral Resource Estimate and Mineral Reserve Statement that indicates the presence of 665,000 tonnes of ore at an average grade of 14.5% RoM and a total rare earth content of 86,900 tonnes with expansion potential at depth and along strike.

Current planning allows a Life of Mine of approximately 28 years which can be extended through the planned expansion exploration programme.

Status

Steenkampskraal Holdings Ltd. (“SHL”, or the “Company”) was formerly known as Rare Earth Extraction Co. Ltd. (“Rareco”). Rareco changed its name to SHL in 2016.

Steenkampskraal Monazite Mine Proprietary Limited (“SMM”), a subsidiary of SHL, was awarded a South African New Order Mining Right (“NOMR”) under the South African Mining and Petroleum Resources Development Act (“MPRDA”), permitting mining operations for a period of 20 years, renewable, commencing 2 June 2010.

SMM also holds a certificate of registration (“COR23”), granted by the South African National Nuclear Regulator (“NNR”) to use, possess, produce, process and store natural occurring radioactive material (NORMS) at and convey, cause to be conveyed and dispose of radioactive material from site.

  • Most of the capital expenditure to bring the mine into production has already been incurred and the additional investment still required is small.

  • Steenkampskraal’s high rare earth grades mean that the mining volumes will be small: to produce 2,700 tonnes of rare earths per year, the production of ore from the mine will be only about 24,000 tonnes per year.

  • At this rate of production, Steenkampskraal will have a mine life of about twenty-five years.

  • Steenkampskraal has great prospecting potential to increase the size of its mineral resource in the Mining Right area and to increase its volume of production or its life-of-mine.

  • The Steenkampskraal ore is amenable to conventional metallurgical processing technologies.

  • Steenkampskraal will be able to produce a high-purity monazite concentrate.

  • Steenkampskraal’s monazite concentrate will be suitable for the caustic crack process and for the production of good quality rare earth carbonate.

  • Many rare earth separation factories want to buy Steenkampskraal’s rare earth carbonate production.

  • Steenkampskraal could build a rare earth separation factory in South Africa and add more value to its rare earth products.

  • Rare earth prices are on an upward trend partly due to the increased production and sales of electric vehicles.

  • Steenkampskraal has the approval of the National Nuclear Regulator (NNR) to store the thorium by-product at the mine.

  • Steenkampskraal is registered with the NNR and could apply for permission to buy monazite from other companies and to process this monazite at the mine; as there are large quantities of monazite in Africa and in other parts of the world, Steenkampskraal could increase its production substantially or extend its life-of-mine indefinitely.

Location of Steenkampskraal

The mine site is in the northern extremity of the Western Cape.

  • 350km north of Cape Town
  • 70km north of Vanrhynsdorp, the nearest town.
  • 320km from the port of Saldanha Bay
  • 30km from the N7, the national highway between Cape Town to Namibia

Development Strategy

US$5M Capital raise

  • Working capital
  • Planning and design
  • Phase 1 & 2 metallurgical testwork
  • Project mobilization, reclamation, refurbishment – Phase 1

US$10 – 15M Capital raise

  • Phase 1 funding
  • Working capital
  • Phase 2 & 3 metallurgical testwork
  • Phase 1 commissioning
  • First production of Monazite concentrate (Q3-Q4 2025)
  • Phase 2 design & commence construction of cracking plant & 228Ra incubators
  • Phase 3 metallurgical testwork
US$15 – US$20m Capital raise

  • Phase 1 steady state production of monazite concentrate
  • Phase 2 cracking plant & 228Ra incubators construction and commission
  • Phase 3 metallurgical testwork
  • Phase 1 steady state production of Monazite concentrate
  • Phase 2 increase RoM production
  • Phase 2 increased production of Monazite concentrate to cracking plant
  • Continued phase 2 cracking plant production of cerium & lanthanum depleted mixed rare earth carbonate, Thorium & 228Ra
  • Phase 3 metallurgical testwork & design of  potential element separation plant
+US$40 Capital raise

  • Phase 1 steady state production of Monazite concentrate
  • Phase 2 steady state RoM production
  • Phase 2 steady state production of Monazite concentrate to cracking plant
  • Phase 2 cracking plant steady state production of cerium & lanthanum depleted mixed rare earth carbonate, Thorium & 228Ra
  • Phase 3 design, construction and hot commissioning of potential element separation plant
  • Produce individual rare earth oxides

Phased Operational Plan

  • Mobilization of mining and processing plant to site
  • Refurbishment of decline & shaft area
  • Re-equipping of headgear, decline shaft and infrastructure
  • Reclamation of equipment, material & loose ore from underground
  • Construction of monazite concentration plant
  • Phase 2 & 3 metallurgical testwork
  • Design and plan Monazite cracking plant
  • Change of scope submissions to NNR
  • Commence underground mining operations
  • Increase production of Monazite concentrate to satisfy production requirements
  • Construct and commission Monazite cracking plant to produce cerium and lanthanum depleted mixed rare earth carbonate, Thorium and 228Ra
  • Phase 3 metallurgical testwork
  • Design and plan rare earth oxide separation plant
  • Increase underground mining volumes
  • Increase production of Monazite concentrate to satisfy production requirements
  • Construct and commission separation plant to produce mixed rare earth oxides

Features of the Mine

  • The Steenkampskraal Mine is located in the Western Cape province of South Africa. It is an existing mine that was operated by Anglo American Corporation from 1952 to 1963.

  • In addition to the mining right area of 474 hectares, the company also owns three surrounding farms with a total area of about 7,000 hectares.

  • Steenkampskraal has one of the highest grade rare earth deposits in the world.

  • The current explored and delineated orebody reports a resource of about 665,000 tonnes at an average grade of 14.5% RoM Total Rare Earth Oxides (TREO) for a total of 86,900 tonnes contained TREO.

  • The current exploited and delineated orebody reports a reserve of about 799,700 (including dilution) tonnes at an average grade of 8.68% Total Rare Earth Oxides (TREO) for a total of 69,400 tonnes contained TREO.

  • The total quantity of neodymium in the mine is 15,600 tonnes at a grade of 2.58% Nd2O3.

  • There is great potential to further increase the mineral resource beyond the current known resource area through an exploration programme at depth and along strike.

  • Low Capex – Much of the work and the investment to bring the mine into production has already been done.

  • Low Opex – Shallow mine with an average depth of 100m within the current resource/reserve area. The high grade of 14.5% RoM means that, on average, including dilution, 12 tonnes of ore will yield 1 tonne of rare earths and the associated cost of sales will remain low relative to other rare earth operations.

Current Status

  • Steenkampskraal has a National Instrument 43-101 compliant Technical Report with both a Mineral Resource Estimate and a Mineral Reserve Estimate.

  • The Department of Mineral and Petroleum Resources (DMPR) issued a New Order Mining Right for the Steenkampskraal mine which is valid until 2030 and which is renewable.

  • The National Nuclear Regulator (NNR) issued a Certificate of Registration to Steenkampskraal which allows it to mine, process, transport and store naturally-occurring radioactive materials.

  • The DMPR approved Steenkampskraal’s Mining Works Programme and Environmental Management Programme.

  • Steenkampskraal has completed the mineralogical characterisation of the ore and the metallurgical test work is continuing to further enhance the value of the mine.

  • The mine shaft and decline headgear has been partly equipped and is currently being refurbished.

  • The Department of Water and Sanitation has issued a Water Use Licence which satisfies the water requirements for the entire operation.

  • Boreholes have been drilled that can provide sufficient water for the mine’s requirements.

  • A reverse osmosis water treatment and desalination plant has been installed.

  • Office buildings have been installed and much of the infrastructure is now in place.

Current mineral resource and reserve classification

 

Mineral Resource Classification Classification Category Resource Tonnage
(t)		 Grade
(TREO+Y2O3)		 Contained
(TREO+Y2O3)(t)
In-situ Mineral Resources Measured 85 000 19.5 16 575
Indicated 474 000 14.1 66 834
Inferred 60 000 10.5 6 300
Sub-total In-situ Measured + Indicated + Inferred 559 000 14.43 80 664
Historic TSF Indicated 46 000 7.17 3 298
TOTAL (In-situ + TSF) Measured + Indicated + Inferred 605 000 14.4 87 120

 

 

 

Mineral Reserve Classification Reserve Tonnage
(t)		 Grade
(TREO+Y2O3)		 Contained
(TREO+Y2O3)(t)
Underground Mine
Proven 103 600 12.4 12 846
Probable 651 000 8.2 53 382
Sub-total 754 600 8.78 66 228
New Combined Tailings
Proven 0 0 0
Probable 45 100 7.1 3 202
Sub-total 45 100 7.1 3 202
Underground Mine and New Combined Tailings
Proven 103 600 12.3 12 743
Probable 696 100 8.13 56 600
TOTAL 799 700* 8.68 69 400

 

ThO2 to cracking (t) Spike @ cracking (mg/t) Harvested spike (mg) Consistent harvest (mg/t/a) LoM harvested (mg) (16 years)
2 390 0,40 956 0,04 1 530
9 300 0,40 3 720 0,04 5 952
900 0,40 360 0,04 576
Total spike harvest 5 036 Total Consistent harvest 8 058
Total Harvest LoM 13 094

* includes dilution & but excludes pending Section 102 extension to the current mining right which would more than double the known resource and associated Life of Mine.

Steenkampskraal Competitive Position

  • Steenkampskraal, as one of the highest grade rare earths mine in the world, will have low mining costs.
  • Steenkampskraal is a shallow mine with a mining depth to a current maximum depth of 160 metres.
  • The planned beneficiation technologies have been tried and tested over many years.
  • The mine has well-established transport infrastructure which means that the transport of labour and materials to the mine and product from the mine will be low.
Example of accessible mining stopes

Example of accessible mining stopes