Resouro Strategic Metals (TSX-V:RSM) has completed a preliminary economic assessment (PEA) for a starter operation at its flagship Tiros Rare Earths and Titanium Project in Minas Gerais, Brazil.
The PEA indicates an after‑tax net present value (NPV) of US$714.9 million ($1.01 billion) using an 8% discount rate and an after‑tax internal rate of return (IRR) of 44.2%.
The proposed starter operation contemplates annual processing of 500,000 tonnes per annum (tpa) over an initial 20‑year mine life, for total run‑of‑mine feed of 9.5 million tonnes at 26.3% titanium dioxide and 10,832 ppm total rare earth oxides (TREO), with a strip ratio of 2.7.
The ‘high‑grade’ area represents less than 1% of the company’s previously announced 1.4 billion tonne measured and indicated resource, highlighting significant expansion potential.
The PEA assumes simple open‑pit mining with free‑digging near‑surface mineralisation. Overall recoveries are estimated at 68.7% for titanium dioxide (to coarse and fine products) and 67% for rare earth elements to a mixed rare earth carbonate (MREC) product.
The dual‑revenue model is based on titanium dioxide and rare earth product streams, with an environmentally conscious design using dry‑stack tailings.
“The project’s robust economics are based on high levels of TREO and titanium dioxide grades,” CEO Christopher Eager says.
“Starting with a small high‑grade operation will minimise social and environmental impacts, reduce time to production, and significantly de‑risk the project.”
The PEA is preliminary in nature and includes inferred mineral resources. There is no certainty that the PEA will be realised.
Resouro Strategic Metals is a Canadian‑incorporated mineral exploration and development company focused on advancing its Tiros Titanium‑Rare Earths Project and Novo Mundo Gold Project in Brazil.
Write to JC Villarba at Mining.com.au
Images: Resouro Strategic Metals
