Pensana Plc - EPCM and Updated Ore Reserve estimate

THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION

Pensana Plc

("Pensana" or the "Company")

 

EPCM and Updated Ore Reserve estimate

 

Pensana Plc (PRE.LSE) is pleased to announce an updated ore reserve estimate and an update on the project delivery for the Longonjo rare earth project in Angola.

 

The highlights are as follows:

• The updated JORC compliant ore reserve grade has increased to 3.04% TREO containing 139,000 tonnes of NdPr oxide for a mine life of over 20 years making it one of the largest and highest-grade undeveloped magnet metal projects worldwide.

 

• The plant will process 800,000 tonnes per annum with a feed grade for the first five years of 4.12% TREO with a very low strip ratio of 0.25 tonnes of waste for each tonne of ore mined.

 

• Benefitting from the excellent infrastructure in the region the capital cost at US$217 million, including contingency, is one of the lowest capital intensities for a rare earth project of this scale.

 

• With the site infrastructure and access road already in place and the mobilisation of contractors underway the main construction of the modularised process plant is expected to commence in the coming weeks.

 

• Initial production of 20,000 tonnes per annum of clean, highly marketable mixed rare earth carbonate (MREC) is due to commence in late 2026.

 

• The Company has received considerable interest in offtake for the stage one production of 20,000 tonnes per annum of MREC and has received expressions of interest in the proposed expansion tonnage of 40,000 tonnes per annum.

 

The technical due diligence carried out by independent technical consultants on behalf of the lender consortium has reported the following updated JORC compliant ore reserve estimate.

 

 

 

 

 

Note: Independent consultants “A&B Global Mining pty ltd” (ABGM) completed the ore reserve using the guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).

 

 

 

 

Update on Engineering Procurement and Construction Management (EPCM)

The project delivery is being undertaken by Mining Consultancy Company Limited (MCC) an experienced project management team with a track record of delivering projects in Angola, working with ADP Holdings Pty part of Lycopodium group (ADP) a specialist in modular construction with extensive experience in Angola, and ProProcess Engineering (Pty) Ltd (ProProcess) which has expertise in delivering modular process units across Africa.

The team has confirmed pricing and manufacturing schedules of all long lead equipment items including the ball mill, acid plant and thickeners.

• Approximately 70% of the equipment packages have been tendered and priced externally including all of the Tier 1, 2 and 3 packages.

 

• The design, costing and contractor selection for the site infrastructure, along with the provision of bulk services, have been completed and the contractors mobilised.

 

• Modularisation of the processing plant has been facilitated to enable efficient site erection and to allow for pre-commissioning testing before despatch to site.

 

• The services to be provided by the Port of Lobito, Caminho de Ferro de Benguela, Lobito Atlantic Rail Consortium, and the national power company RNT have been extensively defined and negotiated.

 

• The specialist equipment manufacturers with a focus on long lead time plant equipment have been identified, pre-selected and included in the design process, including the milling units, flotation columns, calciner, acid plant, reagent plants and thickeners.

 

• Global logistics company Deugro has been engaged to consolidate and provide an “umbrella" service for the global procurement activities.

 

• Environmental Management Plans have been initiated and will work alongside the operational readiness programmes.

 

• A recruitment campaign in Angola has commenced targeting the availability of local skill sets, which will allow confidence in the delivery of an effective operations readiness training programme during the construction phase.

 

About Longonjo

Pensana has spent over US$70 million over the past six years on exploration, technical and environmental studies on the Longonjo rare earth project in the Huambo district of Angola approximately 350 kilometres Southeast of the capital Luanda.

The Company has successfully delineated a near surface JORC compliant reserve of 22 million tonnes grading 3.04% TREO containing 139,457 tonnes of NdPrO making it one of the world’s largest undeveloped magnet metal rare earth deposits with a mine life of over 20 years.

 

The electrification of motive power is arguably the biggest energy transition in history and needs rare earths for permanent magnets.

Initial production will be 20,000 tonnes of a highly marketable clean MREC. A proposed second phase expansion will see production increase to 40,000 tonnes per annum of MREC representing around 5% of the world’s production capable of being converted into permanent magnets for electric vehicles and offshore wind turbines.

 

The Company is committed to developing the Longonjo mine to the very best international standards with the highest level of community engagement and have published a blueprint for sustainable rare earth development which is available on our website. Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf

 

The team’s efforts were recognised in 2022 when Pensana received an award by S&P Green Bond Rating Agency CICERO and more recently, were awarded a Gold Medal by EcoVadis, a leading sustainability ratings provider, placing it among the top 5% of the companies assessed.

 

It has been independently estimated that the Longonjo mine, with access to hydroelectric power and direct access to the Atlantic Port of Lobito via the Lobito Corridor rail line will save over 4 million tonnes of CO2 emissions - the carbon equivalent of replacing 1.5 GW of fossil fuel electricity generation.

 

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

–      ENDS –

 

For further information, please contact:

 

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer