Cadence Minerals PLC - Yangibana Project Costs Reduced By A$68m Or 13%
("Cadence Minerals", "Cadence" or "the Company")
Hastings Technology Metals (ASX: HAS) - Yangibana Capital Cost Estimate Reduced By
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that, further to the Hydromet Plant relocation announcement, Hastings Technology Metals (ASX:HAS) ("Hastings"), Cadence's joint venture partner at the
· Total CAPEX revised to
· New CAPEX leverages heavily to accessible services in the Pilbara with available gas, power, water and telecommunications.
· CAPEX reduction is major step towards achieving Hastings objective of becoming a significant new mid-tier Australian NdPr rare earth producer, positioned to take advantage of the strong market outlook.
· Capital cost reduction strategies are being advanced with possibilities of additional savings in final costing which will be presented during 4Q 2020.
Capital estimates have been revised based on the recently announced decoupling and relocation of the Hydrometallurgical plant to the
The revised capital estimate is now approximately
The overall project capital cost estimate was developed by DRA Global and Hastings technical personnel based on an Engineering, Procurement, Construction and Management (EPCM) approach for the process plant and infrastructure. The estimate includes all the necessary costs associated with engineering, drafting, procurement, construction, construction management, commissioning of the processing facility and associated infrastructure, mining infrastructure, first fills of plant reagents, consumables and spare parts
The estimate is based upon preliminary engineering, material take-offs and budget price quotations for major equipment and bulk commodities. Unit rates for installation were based on market enquiries specific to the material requirements planning (MRP).
The estimate pricing was obtained predominantly during quarter one 2019 (1Q19) and is in Australian dollars (A$), with new and updated pricing being included from quarter one 2020 (1Q20) and quarter two 2020 (2Q20) for those items which have been altered due to the Hydrometallurgical plant relocation. The overall capital estimate has an estimated accuracy of ±15 to 20%. This will be refined over the next few months prior to a final cost estimate release during 4Q 2020.
The capital estimate was prepared using a project Work Breakdown Structure (WBS), which delineates the various areas of the project. Individual estimates were prepared for each area covering all engineering disciplines. The capital estimate has been structured into the following major categories:
• Direct costs;
• Indirect costs;
• Owner's Costs; and
The full HAS release including detailed capital comparisons can be found at: https://www.asx.com.au/asxpdf/20200729/pdf/44kyjnpw4ljpd0.pdf
Cadence Minerals CEO
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% ("Hastings"). Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at:
The current mine plan anticipates production to start from our joint venture areas (Yangibana and Yangibana North) in year 6 and continue to the end of mine life (year 13). Further details can be found in the Hastings 2019 Annual Report
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For further information:
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+44 (0) 7879 584153
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+44 (0) 207 220 1666
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+44 (0) 207 399 9400
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Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identiﬁed by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reﬂect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
This information is provided by RNS, the news service of the
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