Meteoric Resources (ASX:MEI) has completed a Prefeasibility Study (PFS) for its Caldeira Project in Brazil, confirming the presence of substantial, long-term rare earth resources with significant growth opportunities. Meteoric Resources is an Australian company focused on the exploration and development of mineral resources. Their primary project, Caldeira, is poised to become a key player in the rare earths market.
The PFS, conducted by Ausenco, details a probable ore reserve of 103 million tonnes grading at 4,091 parts per million (ppm) total rare earth oxide (TREO), equating to 421,000 tonnes of contained TREO. This ore reserve estimate is underpinned by extensive exploration efforts, including 71,000 metres of drilling and the analysis of 45,000 samples. The study also indicates an optimised operational plan that is expected to deliver higher annual production rates at a reduced capital intensity compared to the initial Scoping Study.
The project is projected to produce 271,000 tonnes of TREO over its mine life, with plant throughput increased by 20% to 6 million tonnes per year. Annual TREO production is estimated to reach 13,584 tonnes, including an average of 4,228 tonnes of neodymium-praseodymium oxide and 130 tonnes of dysprosium-terbium oxide per year. Pre-production capital expenditure is estimated at US$443 million, including US$86 million in contingency.
CEO Stuart Gale stated that the company’s AU$30 million investment over the past two and a half years has provided an ‘excellent’ understanding of the project. The Caldeira Project has an undiscounted post-tax cashflow of US$2 billion using consensus pricing. The project also has a net present value of US$821 million at consensus pricing and US$2 billion using forecast pricing, with an internal rate of return of 28% pre-tax. Gale emphasised that the PFS arrives as Western economies seek to establish secure and reliable rare earths supply chains.
