Search Minerals controls a rapidly emerging Critical Rare Earth Element (CREE) District in SE Labrador that is road accessible and on tidewater. The FOXTROT Deposit, on which a favourable Preliminary Economic Assessment was completed in April 2016, was the first of three important discoveries. Based on surface expression, the other two, Deep Fox and Fox Meadow, appear to be at least as large as FOXTROT. Surface channel sample assays at Deep Fox yielded grades 15% higher than channels at FOXTROT. Search has identified more than 20 other prospects in this highly accessible District and has developed a proprietary, scalable, hydrometallurgical process to optimize every opportunity to position as a competitive low-cost supplier of CREEs well into the future.The Company enjoys tremendous support from the Government of Canada and the Province of Newfoundland and Labrador, both of which have financially supported the development of our proprietary metallurgical process. In addition, Search personnel on the ground have built strong relationships with local communities and with the Nunatukavut Community Council who represent the local aboriginal people. All of these factors will help to ensure that our project can be brought into production at relatively low capital and operating costs and in a timely manner.
|District Opportunity - Search controls a 70 km X 8 km District with a stand alone mineral resource, two other discoveries and 20 additional prospects.||Preliminary Economic Assessment - on the FOXTROT Resource - After-tax payback in 4.4 years.|
|Solid Returns - Discounted at 10 per cent per annum, the 14 year LOM FOXTROT Project offers an IRR of 16.7% on an After Tax NPV of $48m.||Low CAPEX Burden - At $152million, initial CAPEX costs are very low.|
|Low OPEX - Road accessible, on tidewater and a breakthrough hydrometallurgical process provides opportunity to be a low-cost producer.||Scalable Project – initial production of 1,000 tpd.|
|Critical REEs - Economically significant percentages of dysprosium, neodymium, praseodymium, terbium and lanthanum.||Environmental Advantage - Dry stackable waste residue is more environmentally friendly.|
|Exploration Upside - Two new discoveries requiring drill programs and numerous other properties requiring further work.||Mining Friendly Jurisdiction - Newfoundland and Labrador ranked #16 out of 104 jurisdictions reviewed by the Fraser Institute.|
|Great Relationships - Supportive aboriginal and local communities.||Experience - An energized Management Team and Board of Directors.|