Lynas announces a 60% increase to Mt Weld Ore Reserves, one of theworld’s richest sources of Rare Earths

    • Substantial increase in Mt Weld Rare Earth Mineral Resources and Ore Reserves
    • Updated Ore Reserves confirm 25+ year mine life at Lynas NEXT output rates

On August 6, 2018, Lynas Corporation Limited (ASX:LYC, OTC:LYSDY) announced it has updated Mt Weld Rare Earth Mineral Resources and Ore Reserves Statement which shows a substantial increase in tonnage and contained TREO compared with the 2015 Mineral Resources and Ore Reserves Statement.Over the past three years, Lynas has established itself as the world’s second largestsupplier of Neodymium and Praseodymium (NdPr), used in rare earth magnets employed by the automotive, consumer electronics, automation and wind energy industries.

A cornerstone of Lynas’ strategy as a Specialty Materials company is ongoing access to an “assured”reserve. In practical terms, Lynas seeks to maintain Ore Reserves with greater than 25 years life. Mt Weld, in Western Australia, is one of the world’s highest grade operating rare earth mines. The updated Mineral Resources and Ore Reserves Statement consolidates Mt Weld’s position as a Tier 1 Rare Earth deposit.

Lynas CEO and Managing Director, Amanda Lacaze commented: “The 2018 Mineral Resources and Ore Reserves Statement demonstrates the overall superiority of the Lynas deposit at Mt Weld basedon grade, NdPr content, total REO tonnage and life of mine.”

“We are uniquely positioned as an integrated miner and producer of Rare Earths outside China and as a supplier to global manufacturing supply chains. Demand for Rare Earths continues to grow and this update confirms our ability to maintain 25+ year Ore Reserves at the higher output planned as part of our Lynas NEXT initiative, with potential for replenishment and further growth.”

2018 Mt Weld Rare Earth Mineral Resource

  • The Mt Weld Rare Earth Mineral Resources estimate is now 55.4 million tonnes at an average grade of 5.4% Total Rare Earth Oxide (TREO) for a total of 3.0 million tonnes of contained TREO. The estimate is summarised in Table 1.
  • Compared to the October 2015 Mineral Resources estimate, the contained TREO has increased by over 70% from 1.74 million to 3.0 million tonnes TREO.Table 1: Mt Weld Rare Earth Deposit Mineral Resources 2018TREO = total Rare Earth Oxides (La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3) + Yttrium (Y2O3). Totals may not balance due to rounding of figures.

Lynas is a proven and profitable producer and supplier of Specialty Rare Earth Materials to customers all over the world who demand the best technical solution to produce essential, future-facing technologies.

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JORC Classification

page1image3211514912

Million tonnes

page1image3211517776

page1image3211520000

TREO (%)

page1image3211523616page1image3211524208

page1image3211527520

TREO (‘000 tonnes)

Measured

17.5

8.0

1,400

Indicated

12.0

5.5

660

Inferred

25.9

page1image3229855600

3.6

930

T otal

page1image3229861168

55.4

page1image3229863520

5.4

page1image3229866064 page1image3229866480

3,000

page1image3229868576

• The increases are due to additional drilling which identified:

  • Depth extensions of the Apatite Zone (AP)
  • Lateral extension of lower grade material
  • Transitional (TR) and Fresh (FR) REO mineralisation below the AP zone2018 Mt Weld Rare Earth Ore Reserve
  • The Mt Weld Rare Earth Ore Reserves are now 19.7 million tonnes at 8.6% TREO for 1.69 million tonnes of contained TREO, as summarised in Table 2, and presented graphically in Figure 1.
  • Compared to the October 2015 Ore Reserves, (i) Ore Reserves tonnage has increased 100%, (ii) average grade has reduced from 10.8% to 8.6% TREO and (iii) contained TREO has increased 60% from 1.07 million to 1.69 million tonnes.Table 2: Mt Weld Rare Earth Deposit Ore Reserves 2018
  • Metallurgical test work has shown Duncan material performs in line with CLD ore and can be included in the Ore Reserves. The CLD and Duncan are now considered to be part of the same orebody representing a change from 2015 and increasing the area of the orebody.
  • The increases in the Ore Reserves are due to:
    • Depth extensions of the Apatite Zone
    • Inclusion of Duncan South Eastern Area
    • Lateral extension of halo surrounding the high grade core
  • With the inclusion of Duncan, the 2018 Mt Weld Rare Earth Ore Reserves now contain 6,600 tonnes of Dysprosium which compares favourably with other pure heavy rare earth projects.

JORC Classification

Million tonnes

TREO (%)

page2image3230673280

TREO (‘000 tonnes)

Proven

14.6

8.9

1,290

Probable

5.1

7.7

390

T otal

page2image3230683968

19.7

page2image3230867408

8.6

page2image3230868608 page2image3230871712

1,690

 

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