Vital Metals (ASX:VML) has announced the completion of a Scoping Study for its 100%-owned Tardiff deposit in Canada. The study, conducted by ERM Consultants Canada under ASX and JORC guidelines, indicates a pre-tax net present value (NPV) of US$776 million, equivalent to approximately $1.2 billion AUD. Vital Metals is focused on developing rare earth projects, aiming to supply critical minerals. Its subsidiary, Nechalacho Resources Corporation, owns the Tardiff project.
The Scoping Study estimates the total capital cost for the Tardiff Project at US$291 million, or $455 million AUD, with project completion expected within 24 months. Payback from the commencement of production is anticipated to occur within 39 months. Pre-production funding will facilitate site preparation, construction of a new camp and infrastructure, development of a processing facility, establishment of electricity generation, and the purchase of essential capital equipment.
The post-tax NPV stands at US$445 million, with an internal rate of return (IRR) of 25.5%, calculated using an 8% discount rate over an 11-year mine life. These figures are based on a commodity price deck that includes US$90/kg for neodymium and praseodymium, US$1,322/kg for terbium, and US$338/kg for dysprosium. The study also considered current market prices, revealing a pre-tax NPV of US$383 million and a post-tax NPV of US$176 million.
Vital Metals aims to enhance the project’s economic viability by optimising the recovery of rare earth elements and niobium, increasing concentrate grades, and improving payability for economic commodities. Located 100km east of Yellowknife, the Tardiff deposit has the potential to become a long-term supplier of rare earths and niobium, playing a crucial role in Canada’s critical minerals supply chain. The Scoping Study evaluated the development of a hard rock open pit, extracting only 15% of the Tardiff mineral resource estimate.
