Crossland’s project development strategy remains focused on updating the Charley Creek Scoping Study, as a necessary step to raise further funding for the project Pre-Feasibility Study (PFS). Two significant work programmes emerged from our Stage 1 Scoping Study review completed in August 2018:
1. Undertake a 5,000 metre air-core infill drilling programme at Cattle Creek for several reasons. Using this data, complete an updated 2012 JORC compliant resource estimate. The new resource model will be the basis for mine planning and scheduling.
2. Samples from the drilling programme would be used for large-scale process testing, thereby confirming the process as a "Proof of Concept". Rare-earth concentrate produced from this work will be used for refinery tests. This information is needed to define the downstream product processing stream, thereby allowing product quality and price determination.
It is envisaged that the drilling work would be undertaken in 2018, pending necessary site work programme permits. By completing the work programmes above, Crossland can update the Stage 2 Scoping Study. With this study in hand, the potential of the Charley Creek project can be independently substantiated, thereby allowing Crossland to confidently present a business model and raise funds from the investing public at such time.
The Scoping Study will address many of the issues usually required for the Pre-Feasibility Study (PFS). For the PFS, a major hydrological assessment of the region is required to identify the specific location of our future bore-field, thereafter following up with water water-well drilling and pump testing. As soon as we have confirmed our process plant locations, processes and operational parameters, we can develop our mine management plan. This plan will allow us to undertake an environmental impact assessment and develop an environmental management plan. Further to these specific programs, many other studies are planned to reliably define the project and it's components. Overall, engineering and costings will be completed to an appropriate level for PFS and many items suitable for BFS. Results from these programmes will be compiled into a PFS, with updated resource and maybe reserve estimates. Upon acceptance of the PFS, by shareholders and stakeholders, this work will be advanced to an accuracy necessary for a Bankable Feasibility Study (BFS).
The scheduled duration of work necessary to complete the Scoping Study is 7 months once we start drilling. A PFS work schedule is estimated to span 9 to 12 months. The estimated cost to complete the PFS is AUS$ 3M. We may be looking to raise funding for this work firstly from our existing shareholders by way of an issue. We will also seek sophisticated private investor support by way of a placement.
Many of the studies completed for the PFS will be to a BFS level of accuracy. Further work will be needed to upgrade the study PFS to a BFS level of accuracy, as is necessary to raise finance for project construction. The cost to complete the BFS plus the preparation of the Notice of Intent and to finalise the EIS is expected to add 40% to the PFS budget.