Environmental respect and sensitivity starts at the exploration phase. We clean up behind ourselves and as we move forward to develop our properties, we strive to minimize our environmental footprint.

Foxtrot Resource

The FOXTROT Resource Development Project

Location Map

Located near the coastal community of St Lewis, the FOXTROT deposit is on tidewater and road accessible. The deep-water port at St. Lewis is open year-round and there is a motivated workforce available in the area. Strong, positive working relationships have been established with these communities and with the Nunatukavut Community Council who represents the aboriginal people in the area.

Foxtrot Cross Section

To date The FOXTROT deposit has been delineated by, geological mapping and geophysics, 20 surface channels and 18,885 metres of drilling in 72 drill holes. It is open at depth. The context of the mineralized zones is very well understood and surface sampling results have been consistent with assays at depth giving us further insight into the overall District potential.

Preliminary Economic Assessment

Logging Foxtrot Drill CoreIn April 2016, independent consultants Roscoe Postle Associates Inc. (RPA) updated their Preliminary Economic Assessment (PEA) of the FOXTROT Project applying Search Minerals’ proprietary Direct Extraction Process. On that basis, the company is moving forward with the Environmental Assessment process with a view to mine development.

Bulk Sampling

Based on a total indicated resource of 7.39 million tonnes and an inferred resource of 1.98 million tonnes, the Life of Mine Plan outlined in the PEA indicates that 4.9 Mt of ore grade material at an average grade of 0.98% Total Rare Earth Elements (TREE) could be mined over a 14-year period, including open pit mining for the first eight years and underground mining thereafter.

Table3 : PEA- Key Assumptions and Financial Highlight

Production is projected to total 36,700 t of Total Rare Earth Oxides (TREO) in a mixed rare earth precipitate. Revenue projections for FOXTROT are dominated by Nd (39%), Dy (29%), Pr (14%), and Tb (8%); all elements that are projected to remain in supply deficit.

Detailed table on the FOXTROT resource estimate

Mine Development

As noted in the PEA, initial mine development costs at $152 million are relatively low in comparison to other REE projects and includes a $33 million contingency. This relates to the fact that the FOXTROT Deposit is road accessible, in close proximity to a deep-water port and to capital and operational cost savings that the Company expects to gain from its proprietary Direct Extraction Processing Technology(Patent Pending).

In early 2015 SNC-Lavalin Australia Pty Ltd (SNC-Lavalin) was retained by Search to conduct a scoping study for the FOXTROT Project based on the use of this technology. The primary objective was to develop preliminary capital and operating cost estimates for the proposed processing facility. This study was subsequently used by RPA in the completion of the April 2016 Preliminary Economic Assessment.

As per the detailed description of the Direct Extraction Process, the elimination of the grinding, magnetic and gravity separation and bubble flotation processes inherent in more traditional extraction methods, will enable Search to reduce capital and operating costs significantly. Furthermore, as the waste will be in the form of a more stable dry residue, a wet tailings pond can be eliminated in favour of and onsite stacking pad that will decrease the mine’s overall footprint and environmental risks.

Figure 3: Proposed Mine Footprint