ACDC Metals (ASX:ADC) has announced positive results from its Scoping Study for the Goschen Central heavy mineral sand and rare earths project in Victoria. The study outlines strong economic potential based on a 14-year mine life, with a processing plant designed for 6 million tonnes per year using conventional methods. The project is projected to achieve a pre-tax net present value (NPV) of $384 million, coupled with an internal rate of return (IRR) of 24%.
The initial capital expenditure for the heavy mineral sand operation is estimated at $310 million, inclusive of a 10% contingency. Phase two, involving rare earth processing, is expected to be funded by cashflows from the first phase and requires $103.5 million in capital expenditure, plus $15.5 million for plant modifications. CEO Tom Davidson emphasized the significance of the study, highlighting the potential for strong cashflows and further upside from technical and exploration work. The Goschen Central Project boasts an indicated and inferred resource of 620 million tonnes at 2.2% heavy minerals, positioning ACDC Metals as a key player in the critical minerals sector.
