Scoping studies of rare earth mining investments: Deciding on further project developments

Abstract

According to the JORC Code and the PERC Reporting Standard, the main aim of scoping studies is to be used internally by mineral exploration and development companies for planning and comparative purposes, although they are publicly disclosed in some cases.This paper demonstrates that scoping studies based on adequate data gathered from different mining investment projects around the world can help make the case for quick, early and sound strategic decisions, which may be especially crucial for junior mining companies.The basis for the analysis is the previously developed study “Rare earth elements mining investment: It is not all about China”, in which five ready-for-launch rare earth element mining investment projects around the world were analysed: The Bear Lodge project in the USA, the Zandkopsdrift project in South Africa, the Kvanefjeld project in Southern Greenland, the Dubbo Zirconia project in Australia, and the Nechalacho project in Canada. Its purpose was to provide a tool for investors, potential investors and professional advisers addressing rare earth mining investment analysis and to facilitate the development of scoping studies of future rare earth mining projects.The case study used is the Sarfartoq Rare Earth Element Project in Greenland. From this project, the authors use information related only to significant drill intercepts, the geological characteristics of the area and the analysis made of the samples that were presented in the preliminary economic assessment. Thus, the conclusions obtained cannot be considered in any way to be professional advice or investment recommendations.