Longonjo Project Update

Concrete foundations have been poured for the 316-person modular camp manufactured in South Africa for despatch to site later this month.

The on-site team, under the leadership of experienced Project Manager Kevin Botha, is continuing to make good progress with preparatory works ahead of main construction anticipated in May 2024, with cold commissioning commencing in August 2025.

An order has been placed with NCP International, a global supplier of new and refurbished comminution equipment based in South Africa, for the US$2.3 million ball mill for delivery from Johannesburg to meet the construction and commissioning timelines for the concentrator plant.

The detailed design and procurement documentation for other main long lead time or critical path items, such as the thickeners and flotation columns in the concentrator section, along with key equipment in the recovery/MREC section, such as the sulphuric acid plant, have been completed and orders will be placed with the selected vendors shortly.

Grupo Nov has completed the civils and services connections for the initial section of the 316-person modular construction camp. The US$1.3 million camp has been fabricated off site and is ready for shipment from Johannesburg to site during March 2024.

All the site access roads have been completed within the licence area. The 5,000-litre potable water tank is ready for installation to support the construction camp and the future plant facilities.

High priority is being given to community relations and in particular to the resettlement action and livelihoods restoration plans which are progressing according to plan and are being well received.

The agricultural demonstration plots are in their second year and continue to generate excellent baseline data. They are providing the opportunity to train local farmers in the latest agricultural methods.

The mine and processing plant will be constructed from May 2024 and commissioning of the various circuits will commence in March 2025 and continue until final commissioning in April 2026.

A schedule of the expenditures is set out below.

Tim George CEO commented: “The growing on-site team, supported by experienced contractor Grupo Nov, is fully operational and is well advanced with the earth works and other preparatory works ahead of the commencement of the main civils and earthworks campaigns in the weeks ahead.

We are particularly pleased with the attention to health and safety, environmental performance, the training completed on site and the continued focus on the community engagement programs. This will continue to be a priority as we build out the workforce which will increase to over 650 people on site at peak construction later this year.”

About Longonjo

The electrification of motive power through Electric Vehicles and Wind Turbines is the biggest energy transition in history and is forecast to generate a demand growth for magnet metal NdPr of 7.5% CAGR over the next decade.

Pensana owns one of the world's largest undeveloped rare earth mines, and one of only three with a JORC Reserve greater than 100,000 tonnes of NdPr.

Pensana recently announced that one of its major potential customers has approved the product qualification specifications for Longonjo’s proposed MREC product. The Longonjo MREC contains 50% Total Rare Earth Oxide of which 24% is NdPr with minimal impurities and is radionuclide-free.

Longonjo is expected to produce 20,000 tonnes of MREC commencing 2026 and 40,000 tonnes of MREC from 2029 onwards following the planned expansion.

The upfront capital cost of US$217 million for the fully permitted mine and processing facilities is amongst the lowest amongst its peers.

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