- DFS provides confidence in fundamental development and operational drivers
- Drilling and geology programs based on over 55,500 samples assayed from 90,000m of drilling
- Ore reserve and mineral resource updates confirm large reserve and resource
- More than 80% of tenure not considered in the DFS
Meteoric Resources (ASX:MEI) has unveiled a definitive feasibility study (DFS) for its Caldeira rare earth ionic clay project in Brazil which has added to the confidence in its future going forward.
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The outcomes have provided confidence in the fundamental development and operational drivers of the project through drilling and geology programs based on over 55,500 samples assayed from 90,000m of drilling.
Metallurgical bench and pilot testwork over three years, pilot plant production carried out over the last seven months and engineering studies completed by Ausenco have also provided key data.
The outcome of mineral resource updates have further confirmed the project as having amongst the largest rare earth ionic clay reserves and resources known outside of China.
MD and CEO, Stuart Gale, said since acquiring Caldeira in March 2023, Meteoric has undertaken an extensive program of exploration, resource development drilling, resource estimation, metallurgical characterisation of ore, process design testwork, materials handling study, mine scheduling and design, and other related technical studies.
“The Caldeira project DFS is a comprehensive assessment of the technical, commercial and financial fundamentals required to support a formal investment decision. The DFS confirms Caldeira as a low capital intensive, low operating cost, long life asset containing abundant light and heavy magnetic rare earth elements essential to permanent magnet production,” Mr Gale said.
“This is the culmination of over three years of detailed technical analysis and diligence necessary to validate a project of this scale and importance. Our analysis has been critical to reducing the inherent risk that comes with developing projects of this nature and we have built internal capability to continue to mitigate future risk and generate long term value.”
Mr Gale said the DFS demonstrates the project’s ability to generate strong economic returns while maintaining resilience across a range of market conditions.
“Caldeira is positioned to become a significant long- term supplier of rare earth materials, into global markets, at a time when demand for rare earth materials continues to be driven by electrification, renewable energy, advanced manufacturing and defence applications.
“The combination of scale, product quality, cost competitiveness and strategic importance provides a robust foundation and an attractive solution for downstream participants seeking to secure, long- term supply.
“In addition, it also demonstrates the project’s capability of delivering strategic value to governments and industry and provides comfort that the Project can support a range of structured project financing solutions.”
Mr Gale told shareholders Meteoric continue discussions with its strategic partners, government credit agencies and commercial financiers.
“Meteoric clearly has a great resource and an equally great team of people who will deliver on the project’s potential. I am very proud of our team, their expertise and understanding which will deliver our ambitions for the Caldeira project.”
MEI was up 2.78% to 18.5¢. Mkt cap $523.1M.
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