Pilbara Minerals (ASX: PLS) is targeting near-term tantalum production with its entry into a joint venture with Nagrom for the advanced, substantially permitted and high grade Tabba Tabba Project in Western Australia.
Tabba Tabba, owned by world-leading global tantalum producer Global Advanced Metals, has an Inferred Resource of 575,000 pounds of TA2O5 and a partially completed processing facility that is just 75 kilometres by road from Port Hedland.
Under the equal joint venture, Pilbara and Nagrom will develop a boutique open cut mining and processing operation capable of generating cash flows and returns within the next two to three years for a small capital outlay under a mining and off-take agreement with GAM.
This has the goal of producing a more than 5% Ta2O5 concentrate for sale at a fixed price subject to periodic CPI adjustments as per the agreement with GAM.
Geotechnical diamond drilling program will start immediately, with limited work required to upgrade the JORC classification.
Metallurgical testwork has indicated recoveries of up to 88% while a Feasibility Study is due for completion by the end of 2013. Production is expected to being in the second quarter of 2014.
Tantalum is a strategically important mineral with about half the world's production used in electronic products such as tablets, smart phones, digital cameras and electronic systems for vehicles.
Tantalum is also an additive in nickel-based superalloys used to make turbine blades for the aerospace industry and land-based gas turbines.
GAM operates two mines in Australia and accounts for 35% of global tantalum production.
Nagrom is an established metallurgical laboratory in Perth that has over 35 years experience in the beneficiation of tantalite, columbite, tin, tungsten and gold concentrates.
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