Osmond Resources (ASX:OSM) has delivered a Scoping Study for its Orión EU Critical Minerals Project in Andalucia, Spain, outlining an unlevered post-tax net present value (NPV) of US$2.31 billion ($3.33 billion).
Located in Jaén Province, approximately 235km south of Madrid, the project features an internal rate of return (IRR) of 145% alongside a free cash flow payback period of six months. Initial capex is estimated at US$299 million, which includes a 25% contingency.
The proposed operation evaluates an owner-operated, underground room-and-pillar mine accessed by a decline. It feeds a 2-million-tonne-per-annum processing plant (module one) to produce monazite, zircon, and mixed titanium mineral concentrates over an initial nine-year mine life. Average annual EBITDA is projected at US$531 million.
Meanwhile, operating costs are projected at US$67.79 per tonne of run-of-mine (ROM), with a life-of-mine C1 cash cost of US$12.67 per tonne of ROM net of by-product credits.
Module one production is expected to supply approximately 6% of the forecast 2030 EU demand for neodymium-praseodymium (NdPr), 24% of zirconium, and 8% of titanium. Annual monazite concentrate production is forecast to contain 2,160 tonnes per annum of NdPr oxide.
Upcoming project milestones for Osmond include a 13-hole drilling campaign designed to upgrade resource confidence and expand scale, an updated Scoping Study, and ongoing Prefeasibility Study metallurgical testwork.
The company also intends to apply for strategic project recognition schemes in Spain and the EU, alongside pursuing a secondary listing on the Bolsa de Madrid.
Osmond Resources is an explorer and developer focused on critical mineral assets in Europe and Australia.
Write to Paula Fabe at Mining.com.au
Main image: Osmond Resources
