The technical report titled 'Preliminary Economic Assessment -
Highlights
Robust economics
After-tax Net Present Value of
29% internal rate of return over the 17-year life of mine
Low initial capital costs of
Average annual1 net revenue and EBITDA of
Low average production cost of
Long-term rare earth price forecasts provided by Argus Media and Adamas Intelligence, underpinned by compelling supply/demand fundamentals
Significant production of magnetic REEs
Average annual1 production of 208 tonnes DyTb representing approximately 13.7% of
Average annual1 production of 1,190 tonnes NdPr contributing to a balanced mix of light and heavy REEs in the final product
High product quality
Concentration of REEs in the mixed carbonate of 91.9%3
Very high content of DyTb and NdPr at 4.7% and 26.4%, respectively
High purity product facilitates further separation and recoveries
Low environmental impact
Process designed to minimize environmental impact: it does not use explosives; there is no crushing nor milling; approximately 95% of the water used is recirculated; the main reagent is a common fertilizer; no liquid residue is produced, negating the need of a tailings dam
Minimal CO2 footprint is supported by a combination of low energy consumption and a high percentage of renewable energy within the
Expedited path to early production
The pilot plant, currently in operation, de-risks metallurgical recoveries
The
Commissioning estimated to commence in 2029
Upside potential
Drilling campaign underway to increase mineral resources
Metallurgical optimizations have been identified
Annual average does not consider the first year of ramp-up and the last year of ramp-down.
Purity is expressed as REO equivalent.
We recognize the importance of minimizing environmental impact. The Project design emphasizes eco-friendly practices, avoiding explosives and milling, maximizing water recirculation, and employing a common fertilizer as the main reagent. With a process designed to minimize its CO2 footprint, we are dedicated to ensuring that our operations align with sustainable practices and global environmental standards.
As we embark on an ambitious drilling campaign and identify metallurgical optimizations, our sights are set on maximizing the upside potential of the Project. Permitting, a key aspect to be addressed in our expedited path to production, is expected to be well supported by our patented flowsheet, our focus on social development and maintaining a close relationship with the forward-looking
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Key Project Parameters
Table 1 lists the relevant parameters associated with the Project's operating and financial metrics.
Once the clay is delivered to the process plant, it will be washed using an ammonium sulfate solution to extract the REEs from the clay surfaces. No crushing, grinding nor milling is needed to free the REEs from the clays as they are extracted through a non-invasive ion-exchange reaction process whereby ammonium sulfate ions replace REE ions on the surface of the clay thereby liberating the REEs into solution. The REEs in solution are then removed through a pH-adjusted precipitation process and then passed through a high-pressure filter to remove any remaining liquids, resulting in the production of a high-purity REE carbonate ready for shipment to a separation facility. The process plant will have an average production rate of 4,498 t/year of REO within the concentrates.
Any unwanted impurities such as aluminium and calcium that have been extracted from the clays during the ion exchange process are similarly removed through a precipitation process and then recombined with the washed clays before being transported to a dry stacking storage facility for the first five years of the life of mine. Beginning in Year 6, the washed clays will be back-filled to the mined-out extraction zones to initiate the mine closure process.
A water recovery system integrated into the process plant cleans and regenerates the remaining process liquors such that they can be reintroduced into the feed. The treated water is reused in a closed circuit to reduce water consumption thereby preventing the release of process water into the environment. This allows the process plant to operate with the minimum of make-up water and allows the main reagents to be regenerated and reused within the process plant.
Before the barren clays exit the process plant, they are washed with clean water within standard plate-and-frame filter presses. This will remove any residual ammonium sulfate from the clays before they are returned to either a dry stacking facility or used to back-fill the extraction zones to be safely used during revegetation.
The Project include the necessary infrastructure to provide of make-up water for the process plant, supply power to the site, and provide a road network to service the operation, amongst others.
Electrical power for the processing plant, truck shop, administration offices, and other facilities will be supplied by the national power utility through overhead power transmission lines from a sub-station located approximately 90 km from the Project site.
REE Market Outlook4
Vehicle electrification, wind turbines and the transition to renewable energy sources will continue to drive demand for REEs in terms of volume and, especially, value. This will primarily affect the REEs used in alloys to fabricate permanent magnets: Dy, Nd, Pr, and Tb. The supply of clean heavy REEs, especially Dy, has become problematic because few projects target heavy REE deposits. For the medium term, the market will continue to rely on
The near-term forecast is for further price gains and the average prices of permanent magnet REEs are expected to be 15-25% higher in 2024 than 2023. In the medium to long term, Argus Media expects permanent magnet REE prices to increase steadily for the remainder of the decade, with the possibility that they could pick up more quickly in the early 2030s without more supply from new projects. Dy prices are expected to continue to outperform the general permanent magnet REE market due to a significant supply/demand imbalance in the early 2030s .
Two external factors could affect future REE prices, both with the potential to push prices upwards: so-called 'green' premiums and critical material policies (especially in
Perhaps even more relevant to future REE prices are the critical materials policies/regulations being enacted globally, specifically the EU Critical Raw Materials Act and the US Inflation Reduction Act. These regulations/legislations are focussed on creating raw material supply chains that are not reliant on
Targeted Development Timeline
The permitting process is already underway and the technical development of the Project will continue with a bankable feasibility study scheduled to be delivered in 2026 and the commencement of operations in 2030.
Messrs. Rodriguez and Xavier visited the Project from
About
Simultaneously, alongside the development of the Carina and
Forward-Looking Statements
This press release contains 'forward-looking information' within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to: mineral continuity, grade, methodology, development timeline, production timing and upside at the Carina Module, the Company's exploration plan, drilling campaigns and activities in
Contact:
Email: investorrelations@aclara-re.com
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