Arafura Resources (ASX: ARU) has terminated its land purchase agreement for the Whyalla site in South Australia after comprehensive investigative work confirmed it is no longer required.
This is part of the company’s goal of achieving $400 million in capital savings by relocating intermediate chemical processing for its the Nolans Rare Earths Project closer to the mine site in the Northern Territory.
Arafura added that this may also potentially include locating rare earths separation alongside established infrastructure at a suitable chemical precinct.
It is examining a number of potential sites for rare earths separation as part of a global site assessment study.
Nolans Bore has an Ore Reserve of 24 million tonnes at 2.8% rare earths oxide, enough to support a 22 year mine life.
In addition, an Inferred Resource of 21Mt is available for potential future conversion to Ore Reserves.
This is amendable to open cut mining and milling while requiring just standard beneficiation techniques.
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