Meteoric Resources (ASX:MEI) has conducted a Prefeasibility Study (PFS) of the Caldeira Project in Brazil, confirming long-life rare earths assets with growth potential.
The PFS, conducted by global engineering group Ausenco, outlines a probable ore reserve of 103 million tonnes @ 4,091 parts per million (ppm) total rare earth oxide (TREO) for 421,000 tonnes of contained TREO. The ore reserve is based on exploration programs delivering 71,000m of drilling and 45,000 samples.
Meteoric, which has a market capitalisation of $362.29 million, says the study also highlights an optimised plan delivering higher annual production at lower capital intensity compared to the Scoping Study.
Over the mine’s life, 271,000 tonnes of TREO will be produced, with a plant throughput increased by 20% to 6 million tonnes per year.
The annual TREO production totals 13,584 tonnes, with an average neodymium-praseodymium oxide production of 4,228 tonnes per year and an average dysprosium-terbium oxide production of 130 tonnes per year.
Calderia also has a pre-production capital expenditure of US$443 million ($680.78 million) – representing a 10% increase – inclusive of US$86 million in contingency.
The PFS also outlines an undiscounted cashflow of US$2 billion post-tax using consensus pricing. The project also has a net present value of US$821 million at consensus pricing and US$2 billion using forecast pricing, with an internal rate of return of 28% pre-tax.
CEO Stuart Gale says with an investment of more than $30 million over the past two-and-a-half years, the company has an “excellent” understanding of the project where it can optimise the asset as it moves into the final piloting and studies phase.
“Our confidence in the PFS and process more broadly is based on the enormous effort devoted to testing and refining the process and flowsheet,” Gale says.
“The Caldeira Project PFS arrives at an opportune time as the US and other western economies seek to establish responsible and reliable rare earths supply chains.
“Our priorities are clear – establishment of the onsite pilot plant; commence targeted improvement initiatives; progress permitting towards the issue of a construction licence in 2026; and concluding strategic discussions about project funding, offtake and potential downstream opportunities.”
The Caldeira Project, covering 193km2, is located in the southwest region of Minas Gerais state of Brazil.
Write to Aaliyah Rogan at Mining.com.au
Images: Meteoric Resources
