Rainbow Rare Earths Ltd (LON:RBW) is targeting production of 10,000 tonnes per annum of rare earth concentrate at its Gakara mine in Burundi.
It would be a ten-fold boost from the 850 tonnes produced in the year to 30 June, which was a 44% increase year-on-year.
The grade of 57% total rare earth oxides sold at an average price was US$1,812 per tonne.
The miner has already begun a programme of test work and further exploration to define whether the mines reserves can support the new target for a ten-year operating life.
While current activities focus on veins outcropping at surface, recent testing suggested there are minerals at a lower level too, implying potential for a larger deposit than initially expected.
Operations will be supported by a new mining fleet, better suited for wet terrain, and mechanical extraction, rather than by hand, to allow for greater quantity.
The short-term objective is to reach breakeven profitability by January 2020, to then employ cash resources for the new target.
Revenue for the year was US$1.5mln, a 35% growth y-o-y, while adjusted underlying loss was US$3.3mln, a 39% contraction y-o-y, as the firm encountered operating problems during the rainy season.
Cash at the end of the period was US$Read More – Source