Panda Hill Niobium Project

The Panda Hill Niobium Project is located in the Mbeya region in southwestern Tanzania, approximately 680km west of the capital Dar es Salaam.

The industrial city of Mbeya is situated only 26km from the project area and has a population of approximately 280,000 people. The Project is located near the main highway to the capital Dar es Salaam and in close proximity to the Songwe Airport which has regular domestic flights from Dar es Salaam and plans for regional expansion.

Cradle previously released a Definitive Feasibility Study (“DFS”) on the Project in April 2016. The DFS was based on the Project upgrading its niobium concentrate to ferro-niobium on-site. Ferro-niobium is a final product that is sold directly to steel mills, with no further upgrading required.

The Project is covered by three granted Mining Licences (refer Figure 3) totalling 22.1km2, which will enable a quick transition from the study and development phases, through construction and into operation. The area has excellent access to infrastructure, with existing roads, rail, airports and power available in close proximity. The three granted Mining Licences were all renewed during the December 2015 quarter for a further 10-year period (valid until November 2026).

 The Project has a current Mineral Resource estimate of 178 Mt at 0.50% Nb2O5 for 891 kt of contained Nb2O5, which was reported at a cut-off grade of 0.50% Nb2O5 (Refer to ASX announcement  for CXX "Substantial Increase in Panda Hill Resource" dated 30 April 2015 for further information).

In July 2017, the Tanzanian Government passed amendments to the legal framework governing the mining sector in Tanzania (“New Legislation”) which, amongst other things, entitles the Tanzanian Government to a 16% shareholding in all Tanzanian mining companies.