London Commodity Markets - Rare earth mineral firm waiting for data from Alaskan mine

Ucore Rare Metals Inc. hopes to soon have a better measure of its rare earth mineral resource in Alaska.
“It should lift our level of assuredness from inferred (resources) to indicated and measured,” Mark MacDonald, the Bedford company’s vice-president of business development, said Tuesday in an interview.
The company expects the resource update in about a month, MacDonald said.

London Commodity Markets Rare Earth Elements News

On Tuesday, Ucore filed with SEDAR a detailed 250-page preliminary economic assessment of the Dotson Ridge zone of its Bokan Mountain property in southeastern Alaska.

SEDAR is the mandatory document filing system for Canadian public companies.
The assessment results, released in a shorter version in November, concluded that the Dotson Ridge property has a net present value of $577 million at a 10 per cent discount rate, with a 43 per cent internal rate of return.

Capital costs to mine the property, including the construction of a rare-earth-oxide separation plant, were pegged at $221 million.

The assessment estimated the mine would have an 11-year lifespan at a mining rate of 1,500 tonnes per day, with an average 81.6 per cent total rare earth recovery.
MacDonald said the report’s findings meant that a $221-million investment would return $95 million a year in profits for 11 years.

He calculated the $95-million annual profit figure by multiplying the $221-million capital investment and the 43 per cent return rate.

Ucore hopes to begin mine construction in 2015, with production beginning late that year or early 2016.
The operation is expected to employ 170 people.

Most of the world’s supply of rare earth metals, used in smartphones, electric cars and missile systems, comes from China.

Ucore argues that a domestic supply of the metals is critical to the United States defence, clean energy, aerospace, computing and transportation sectors.

The company’s stock was trading Tuesday for 46.5 cents a share on the TSX Venture Exchange, up slightly from its previous close.

Article reproduced as originally appeared in Herald Business

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