The Nyngan scandium resource is located within a limonitic and saprolitic tertiary age laterite profile, covered by 12 to approximately 25m of Cainozoic alluvium. A fairly typical laterite profile is developed at the prospect:
-Hematitic clay.
-Limonitic clay.
-Saprolitic clay.
-Weathered bedrock.
-Fresh bedrock.

A geological interpretation plan has been previously prepared, based on bedrock intersections in both recent and previous drilling. Because of the weathered nature of the drill cuttings, the geological plan must be considered interpretive. The igneous rock types which have been encountered are:
Pyroxenite.
-Olivine Pyroxenite.
-Hornblende Pyroxenite.
-Hornblendite.
-Magnetite Pyroxenite.
-Dunite.
-Monzonite.

There is a suggestion of a layered trend of the complex in a NW-SE direction (this is supported by the magnetic pattern). These trends reflect a broadly concentric zonation of lithologies (mafic lithologies in the centre becoming intermediate in moving out from the “core”) in the complex. There also appears to be a zone of stronger alteration in the (south) centre of the zone where abundant magnetite and mica (phlogopite) occur.

The Nyngan scandium deposit is considered a surface-mineable deposit, with an overall strip ratio approximating 3.4:1, depending on specific areas mined, and which portions of the resource material is being mined for production. The mine design has been prepared by Mining One Consultants (Melbourne) and has been developed using industry recognised analysis techniques including pit optimisation using Whittle-4X and Surpac mine planning software. All earthworks will be carried out using a mining contractor on a campaign basis, and mining will be carried out using selective truck and excavator mining methods. Campaigns will typically be conducted three times each year for the 20 year mine life.

The process plant for the Nyngan Scandium Project will treat the scandium bearing limonite mineralisation from Nyngan to produce a scandium oxide product. The flowsheet consists of:

Recovery of ore from mined stockpiles using a front end loader. Adding the mill feed to a hopper and then onto a conveyor. The lightly crushed mineralisation then is slurried with process water in the drum scrubber and then into a trommel screen. The slurry from the trommel screen underflow falls into a hopper and is pumped to the ball mill circuit, via the cyclone feed hopper, in order to further break up clay material. The trommel screen overflow is stockpiled as coarse rejects.

The slurry from the ball mill discharges into the cyclone feed hopper and then pumped to a series of cyclones. Cyclone overflow passes to the leach feed thickener. Cyclone underflow (+75 µm) is returned to the feed chute of the ball mill.

The leach feed thickener increases the solids density in th ........