Pensana Metals Ltd (ASX:PM8)

Pensana Metals Ltd (ASX:PM8)


Share Price
$ 0.03
Change
0.002 (8.33 %)
Market Cap
$38.31 m
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Pensana Metals Ltd

Pensana Metals Ltd (ASX:PM8) is a focussed NdPr company listed on the Australian Securities Exchange.

Pensana is developing the Longonjo NdPr Project located 60 km west of Angola’s second largest city of Huambo and only 3 km from the newly upgraded Benguela rail line that runs to the Atlantic port of Lobito.

The current inferred Mineral Resource estimate at Longonjo is now...

EPIC: PM8
Market: ASX:PM8
52-week High/Low: A$0.03 / A$0.01
Sector: Mining
Market Cap: $38.31 m
Website: www.pensanametals.com
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Big Picture – A Deep Dive Examination of Pensana Metals Ltd


Pensana Metals Ltd Snapshot

Pensana Metals is set to become the next non-Chinese major supplier of NdPr essential for the production of high strength light weight permanent magnets.

Neodymium and Praseodymium (NdPr) are vital components of all EV drive trains.

Chinese companies control 87% of the world’s magnet production and 96% of the NdPr produced globally.

Analysts forecast sustained growth in demand for NdPr and Pensana is well placed to take advantage of this.

The US$300bn EV boom is well underway.

The electrification of motive power is the biggest energy transformation in history.

It’s on every government’s policy agenda and it’s driven by millennials.

But it’s not just EVs.

It’s also wind turbines, all forms of transport, domestic appliances and a growing universe of clean energy applications.

Pensana has a highly experienced board and management team, industry leading consultants and advisors, support from Angolan State, Provincial and Municipal governmental bodies all working towards the successful development of the Longonjo NdPr Project.

 

View the latest presentation click here

About Longonjo NdPr Project

Strategic and Focussed Vision for Longonjo

Pensana Metals is completing studies for a distinctly different, low cost development approach for Longonjo and to determine the potential of the project to become a globally significant supplier of raw materials to the expanding magnet metal market - a market driven by the electrification of transport and the drive to green energy generation.

The company has engaged world reknowned engineering firm Wood Group PLC to complete a presfeasaility study due in September 2019.

Longonjo is located only 4 kilometres from a modern rail line that leads directly into an Atlantic port. The potentially free dig, low waste to ore ratio and high grade nature of the surface mineralisation, together with its favourable location and transport infrastructure already in place distinguish Longonjo from other rare earth projects.

The Company’s vision is to leverage these unique advantages with the aim to rapidly develop a relatively low capital intensive, low technical risk, conventional open pit mine and on site beneficiation plant to produce a high grade mineral product for export.

 

Pensana Metals Ltd has a potentially world class NdPr project at Longonjo, located close to modern road and rail links to a new port development in the infrastructure rich country of Angola.

 

Long NdPr 11

 Figure 1. Location of Longonjo NdPr Project close to major transport links

 

Huge upgrade in Mineral Resource estimate sends Longonjo to the top of the world league 

(See ASX announcement of 19 February 2019 for further details)

 

Highly  respected international  mining  industry  consultants  SRK Consulting  have  reported  an  updated  inferred  Mineral  Resource estimate  of:

240 million tonnes at 1.60% REO including 0.35% NdPr for 3,850,000 tonnes of REO including 840,000 tonnes of NdPr

This new Mineral Resource estimate represents a more than seven‐fold increase in tonnes and contains well over four times the amount   of NdPr compared with  the maiden Mineral Resource estimate reported to  the ASX on 26 September  2017 at equivalent cut‐off grades. 

The deposit occurs as a blanket of soft weathered material averaging around  30 metres in thickness and up to 75 metres in places.

The highest grades occur from surface.The deposit remains open at depth and in a number of directions laterally.

The initial focus will be on the resource occurring within a cut off around .65% NdPr which totals 22.9 million tonnes at 4.16% REO and .86% NdPr   containing around 953,000 tonnes of REO including 197,000 tonnes of NdPr. 

Tables 1 to  3 below summarise the Mineral Resource estimate at a range of cut off grades, material types  and total rare earth oxide grades.

 

Table 1 and 2

 

table 3

*NdPr = neodymium+praseodymium oxide. REO = total rare earth oxides. A 0.1% NdPr cut  is applied. 

 

The weathered zone contains the most  favourable  NdPr  mineralisation  for  mining and  processing  due  to  its  high grades  from  surface and  forms a  thick  blanket of soft material extending up to 75 metres in depth. 

cross section

High grade near surface mineralisation

REsource diagram

As the plan above shows, the high grade, near surface mineralisation remains open in several directions, offering the potential for  further extensions to the Mineral Resource estimate with additional drilling. The Mineral Resource estimate was completed by independent mining  consultants SRK Consulting (Australasia) Pty Ltd and is reported in accordance with the JORC Code and Guidelines 2012

 

Infrastructure advantages

 

The Longonjo NdPr Project has an enviable location compared to many NdPr development projects, close to established infrastructure.

The Project lies just 4.3km from the sealed national highway and rail line that run from the port at Benguela 200km to the west, to the provincial capital of Huambo 60km to the east. A power transmission line from the Gove Dam hydroelectric power plant currently extends to Caala, 38km to the east of the Project.

Longonjo NdPr 4

 Figure 4. Longonjo is favourably located close to existing infrastructure that includes a sealed national highway and rail linking the Project to the deep water sea port at Benguela to the west, and the provincial capital of Huambo 60km to the east.

 

The location of the project close to established modern infrastructure is a major advantage to the practical and financial development of the Longonjo NdPr Project.

 

 

The refurbished National Highway EN260 runs 315km from Angola’s second largest city of Huambo through the municipality of Longonjo to the deep-sea port of Benguela/Lobito. The rehabilitation of the road was reported to have cost US$128 million.

The Benguela Railway was reconstructed between 2006 and 2014 by the China Railway Construction Corporation at a cost of US$1.83 billion employing 100,000 Angolans. The railway extends from Zambia through the Democratic Republic of Congo and services the ports of Benguela and Lobito on the Atlantic coast of Angola.

The railway is Cape gauge, 1,067 mm (3 ft 6 in), which is used by most mainline railways in southern Africa. The maximum design speed is 90 km per hour. The design capacity is 20 million tons of cargo and 4 million passengers per year. There are 67 stations and 42 bridges along the route of the railway.

The Angolan Government invested about US$2billion for the rehabilitation of the Lobito port.The dry dock, container terminal and ore terminal at the port of Lobito, in Angola’s Benguela province, cost an estimated US$1.247 billion. The container terminal is 414 metres long, the ore terminal has a 310-metre jetty and the dry dock is directly connected by road and rail to the port of Lobito and the Benguela Railroad, providing an area of 90,000 square meters.

Longonjo NdPr 5

Figure 5. Lobito Port infrastructure directly connects to the Benguela rail line

 

The Company looks forward to providing regular updates of the progress of the exploration programmes and the evaluation of this potentially world class NdPr Project.

 

Angola - Huambo Province


 

Paul Atherley
Chairman


Mr Atherley is a highly experienced senior resources executive with wide ranging international and capital markets experience. He graduated as mining engineer from Imperial College London and held a number of mine management, senior executive and board positions during his career. He served as Executive Director of the investment banking arm of HSBC Australia where he undertook a range of advisory roles in the resources sector. He has completed a number of acquisitions and financings of resource projects in Europe, China, Australia and Asia. Mr Atherley was based in Beijing from 2005 to 2015 and developed strong connections within Chinese business, industry bodies and senior government officials, including the most senior levels of the state owned energy companies. He was the Chairman of the British Chamber of Commerce in China, Vice Chairman of the China Britain Business Council in London and served on the European Union Energy Working Group in Beijing. He has been a regular business commentator on China and the resources sector, hosting events in Beijing and appearing on CCTV News and China Radio International as well as BBC, CNBC and other major news channels. Mr Atherley is a strong supporter of Women in STEM and has established a scholarship which provides funding for young women to further their education in science and engineering.
 


 

David Hammond
Executive Director / Chief Operation Officer


Mr Hammond has over 28 years' technical, resource definition and project development experience in Africa, Australia and South America. He was most recently the Technical Director with Peak Resources Ltd for seven years where he led all exploration, resource definition and technical study teams, from the second drill hole of the deposit through resource, reserve, scoping study, prefeasibility.

David holds a Master of Science (M.Sc.) and a Diploma of Imperial College (DIC) from the Royal School of Mines Imperial College London. He is a member of AUSIMM and a competent person for JORC reporting.

 



Mark Hohnen
Non-Executive Director


Mr. Hohnen has experience in the Japanese, Chinese and Korean markets, all of which play a significant role in the production of lithium ion batteries and the development of electric vehicle technology.

Mr. Hohnen has been involved in the mineral resource sector since the late 1970s. He has had extensive international business experience in a wide range of industries including mining and exploration, property, investment, software and agriculture. He has held a number of directorships in both public and private companies and was founding Chairman of Cape Mentelle and Cloudy Bay wines, as well as being on the board of oil and coal company Anglo Pacific Resources Plc.

Mr. Hohnen was also a director of Kalahari Minerals and Extract Resources, having successfully negotiated the sale of both companies to Taurus (CGN). He is also chairman of ASX listed, Boss Resources Limited and director of Salt Lake Potash Limited.




Neil Maclachlan

Non-Executive Director


Mr. Maclachlan has over 35 years’ investment banking experience in Europe, South East Asia and Australia and has extensive experience in public company directorships. He currently serves as chairman and a major shareholder in Markham Associates, a private UK partnership, which undertakes financial consultancy and direct investment activities in the junior mining sector in Europe, Australia and South East Asia.

Mr. Maclachlan was a director of Extract Resources Ltd and Kalahari Minerals Plc. Both Extract Resources and Kalahari Minerals were the subject of successful takeovers for $2.1 billion and ₤651 million respectively.

Mr Maclachlan has considerable public company experience in the mining sector having been on the boards of several companies listed on the ASX, AIM and TSX.




Tim George BSc (Hons) Minerals Eng.

Chief Executive Officer


Tim is a Minerals Engineer with over 30 years of experience in the mining and engineering sectors, with a broad experience in mining project development throughout Sub‐Saharan Africa.

He holds an honours degree in Minerals Engineering from Leeds University and has spent over a decade in production management at several Anglo American operations in Africa and was involved with plant design and feasibility studies in various base and precious metal projects.




Scott Mison B.Bus, CA, AGIA

Company Secretary & CFO

Scott holds a Bachelor of Business degree majoring in Accounting and is a Member of the Institute of Chartered Accountants in Australia and Governance Institute of Australia.

Scott has more than 23 years of corporate and operational experience across Australia, UK, Central Asia, Africa and the US. He is currently a Director of ASX-listed New World Cobalt. He is also a member of the Board of Rebound WA Inc. (formerly Wheelchair Sports WA Inc.).

 



Graeme Clatworthy
Managing Director, Ozango Minerais


Mr Clatworthy (B.Bus) has over 28 years of experience in the stockbroking industry working for several Australian stock broking firms.

He is an experienced public company director and is General Manager of Pensana’s Angolan subsidiary Ozango Minerais SA.

Graeme has established strong relationships with Pensana’s Angolan Government partner Ferrangol E-P, the Ministry of Mineral Resources and Petroleum and local authorities.

 


 

Paulo Nunes
Country Manager, Angola


Paulo is an experienced Country Manager with exceptional organisational and management skills.

He has been involved with the Longonjo NdPr Project since 2012.

Paulo speaks fluent Portuguese and English and has established a wide network of governmental and commercial contacts.

Shareholder Information

             

           Substantial Shareholders       

  

 

Pensana Metals Ltd

Level 1 / 10 Outram Street
West Perth, WA 6005
Australia
Tel: +61 8 92210090

email: [email protected]

ABN: 86 121 985 395

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