Zandkopsdrift contains a good distribution of the more promising rare earths contained within some of the simpler rare earth minerals from a processing standpoint. So much depends on assumed rare earth prices, but even after accounting for what will effectively be 66.7%* ownership and using very conservative price assumptions the preliminary economic assessment still allows for plenty of upside. A major hurdle will be funding the >$900 million capital cost, which means support from KORES (and perhaps others) will be key. Plenty of patience is required, with the targeted completion of a feasibility study set for Q3 2013, but that probably means it’s going to be very thorough and very bankable (if for no other reason than that KORES will insist upon it).

*assuming KORES exercises its option to acquire a 10% interest in the 74% owned subsidiary (26% BEE ownership).