Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) announced that the Joint Management Committee overseeing the Lofdal Heavy Rare Earth Project in Namibia has approved the next phase of work for the project's definitive feasibility study (DFS), including up to approximately C$11 million in additional funding to advance completion of the study.
The company also announced the award of its first major metallurgical and geometallurgical contracts under the expanded DFS program to SGS Canada, which will carry out testing and process development work.
According to the company, the approved programs mark the transition of the Lofdal project into full DFS execution. The work is intended to validate the complete processing flowsheet from run-of-mine ore through to the production of separate light and heavy rare earth carbonate products, while generating engineering and operating data to support updated plant design and project financing.
A key objective of the expanded metallurgical program is to evaluate the production of higher-value intermediate rare earth products in Namibia. Rather than exporting mineral concentrates for further processing, the program will assess integrated hydrometallurgical processing to produce separate light rare earth carbonate (LREC) and heavy rare earth carbonate (HREC) products.
The company stated that this approach aligns with Namibia's goal of increasing domestic beneficiation of critical minerals while supporting industrial development and long-term economic value creation.
Namibia CEO Darrin Campbell said the approval of additional DFS funding will support a comprehensive metallurgical development program designed to reduce processing risks and provide engineering data required for detailed design and project financing.
"Equally important, these programs move Lofdal beyond conventional mineral concentrate production toward higher-value mixed and separated rare earth products," Campbell said. "This work supports Namibia's vision of developing downstream critical mineral industries while strengthening secure and diversified supply chains for Japan and other allied economies."
Under the approved work program, approximately 30 tonnes of representative ore will undergo continuous pilot-scale flotation testing to validate the processing flowsheet, optimize operating conditions and produce concentrate for downstream hydrometallurgical processing.
A continuous hydrometallurgical pilot plant will also be established to demonstrate the complete processing flowsheet, including acid bake, leaching, impurity removal, solvent extraction and precipitation. The campaign is expected to produce mixed rare earth carbonate followed by separate light and heavy rare earth carbonate products.
Additional laboratory and pilot-scale solvent extraction work will focus on optimizing the separation of light and heavy rare earth elements and identifying opportunities to improve operating economics through lower reagent consumption.
The expanded program also includes a geometallurgical campaign involving 98 representative samples from across the Lofdal deposit to refine geometallurgical domains and develop predictive processing models for mine planning and process optimization.
The company said the work is expected to validate pilot-scale processing performance, generate engineering design criteria for the process plant, optimize recoveries and operating costs, support environmental permitting activities and further de-risk the processing component of the Lofdal project ahead of completion of the definitive feasibility study.
Shares of Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) jumped over 14% at the open in Toronto before settling to trade around C$0.18 by midmorning.
