Brazilian Critical Minerals (ASX:BCM) has provided an update on the potential for the Ema Project in southeastern Amazonas, Brazil, to be an ultra-low capex and opex asset, following completion of the scoping study into the project.
The study highlighted the project economics as having low start-up capital requirements of US$55 million ($86.69 million), as well as a post-tax net present value of US$498 million over the forecast 20-year mine life.
The company advised an expected internal rate of return of 55%.
Brazilian Critical adds the study shows Ema to have a nameplate processing capacity of 2,660 tonnes per year of total rare earth oxide (TREO) for the first full three years.
By the fourth year, the project will expand to 5,300 tonnes per year of TREO.
Managing Director Andrew Reid says the study results are good in terms of capex, opex, and net present value at current spot prices, as well as having few peers that compare.
“Opex at US$6.15 per kg TREO is uniquely low and positioned in the very lowest portion of the cost curve,” Reid says.
“The in-situ recovery extraction technique, prevalent throughout China, Myanmar and other parts of southeast Asia is simple, effective, quick to build, and when coupled with the use of magnesium sulphate turns the Ema Project into a highly complaint ESG project with little disturbance to the local environment.
“We will now forge on with field trials to test permeability, complete environmental baseline assessments and commence engineering studies as part of a larger more detailed next study phase which we aim to complete throughout 2025.”
The company notes that the study places Ema as the western world’s “lowest cost rare earth project producing a mixed rare earth carbonate” amenable for downstream processing.
Brazilian Critical plans to assess the Scoping Study development through a Feasibility Study with the aim to maximise value and optionality, as well as minimise risk.
Based on the results, the company will begin the regulatory approvals process in the first half of 2025. The next phase of study will also begin in Q2 2025, dependent on sufficient and available funds.
Earlier this month, the company updated Ema’s resource estimate which now contains 943 million tonnes @ 716 parts per million TREO, with the Starter Zone’s indicated and inferred resource rising to 341 million tonnes @ 746ppm TREO.
The Ema Project is an ionic rare earth asset which shares similarities with ionic rare earth deposits developed over felsic volcanic rocks in southwest China — the world’s largest known ionic clay region.
Brazilian Critical Minerals is focused on exploring and developing rare earth projects in Northern Brazil.
Write to Aaliyah Rogan at Mining.com.au
Images: Brazilian Critical Minerals
