Rare earths-seeker Meteoric Resources NL (ASX:MEI) has doubled the resource of its Brazilian Caldeira Project in the measured and indicated categories – through an update of the same from the Capão do Mel deposit – ahead of a scoping study on the project which is to be released shortly.
Capão do Mel now has a measured and indicated resource of 85 million tonnes at 3,034 parts per million (ppm) total rare earth oxides (TREO), with a cut-off of 1000 ppm.
This includes a sweet spot of 36 million tonnes of high-grade core grading 4,345ppm TREO (at a cut-off of 3,000ppm) including 19 million tonnes at 5,163ppm TREO (for a 4,000ppm cut-off).
Meteoric aims to build its initial production strategy around this high-grade core, with feed grades of more than 4000ppm TREO being targeted for the first five to ten years.
The overall mineral resource estimate (MRE) for the Caldeira project – located in the Minas Gerais state – has increased to 619 million tonnes at 2,538ppm TREO (with a cut-off of 1,000ppm) with 23.6 percent magnetic rare earth oxides (MREO).
The company is planning to situate its processing facility for the project proximal to the high-grade areas of Capão do Mel, an approach which is expected to boost the overall project economics and quick payback of capital for Caldeira.
Meteoric’s executive chairman Dr Andrew Tunks said the upgrade was another significant milestone for the company.
“Another outstanding result which reflects the Company’s rapid progress to be the next rare earth mine developed in Brazil,” he said.
“Importantly, the high-grade core of the updated resource is located within close proximity to our proposed plant site at Capão do Mel and clearly supports our strategy to prioritise the development of this unique, very high-grade zone of approximately 36 million tonnes for the best part of a decade.
“With more significant resource updates and the Scoping Study to come, coupled with our extensive ground holdings all within the volcanic crater of Poços de Caldas, it is clear the Caldeira Project stands above all of its peers in the market.”
Meteoric has been trading at 17.2 cents.