Cadence Minerals PLC (KDNC.L) Yangibana Rare Earth Joint Venture Update

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes that Hastings Technology Metals (ASX: HAS) (“Hastings”) has announced that ore sorting test work has confirmed its suitability within the beneficiation process in delivering early gangue mineral rejection and a significant upgrade of rare earths material prior to the higher-cost processing steps across the Yangibana Rare Earths Project (“Yangibana”), in Western Australia’s Gascoyne region.

The ore sorting test results confirmed that the total rare earth oxide (TREO) recovery through the ore sorter is a linear function, where the lower the head grade, the higher the mass rejection becomes. It is, therefore forecast, based on the average content of alumina and silica for all Yangibana deposits, that 24% of the proposed crusher feed will be rejected by the ore sorters as waste at the expense of only 4% TREO volumes across the life of mine schedule (“LOM”).

Highlights:

· 26% upgrade to the life of mine total rare earths oxide (TREO) grade.

· 96% overall TREO recoveries after ore sorting.

· 24% upfront mass rejection of primary crusher feed, resulting in:

o 24% reduction of beneficiation plant reagent consumption.

o 24% reduction in required tailings storage facility size for the life of mine; and

o effective mitigation of the risk of mining dilution.

· Ore sorting test work continues to validate the positive impacts on the Yangibana process flowsheet:

· Engineering development is progressing to incorporate the ore sorting circuit into the beneficiation process flowsheet.

The variability test work program was completed testing 12 samples from across the Yangibana deposits. The performance of the ore sorters is closely linked to head grade, resulting in LOM mass rejection of 24% with a corresponding increase in average grade of TREO content of 26%.

The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/3bb7e431-691.pdf

Relevance to Cadence Minerals Holdings in the Yangibana Project:

Cadence is a 30% joint venture partner on 3 Mining Leases, 6 Exploration Licences of the Yangibana Project. Hastings is our 70% joint venture partner on these assets and owns 100% of the remaining portion of the Yangibana Project. Further detail on the asset and the resources and reserves on our joint venture lands can be found here

As stated in the Hastings announcement the effect of the results of the ore sorting test work is forecast to have a positive effect on the LOM. It is important to note, however, that currently a definitive feasibility study in November 2017, does not include Cadence’s joint venture interests and in addition Hastings current economic model does not include any costs or revenue ascribed to the 30% interest in the deposits held by Cadence.

Therefore, to assess the effect of the improvements announced by Hastings, we will have to await further updates which are specific to our joint venture areas.

For further information:

Cadence Minerals plc

+44 (0) 7879 584153

Andrew Suckling

Kiran Morzaria

Image via @Brand_UK


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