McLaren Minerals Limited (ASX: MML), a mineral exploration company focused on the future development of our high-value McLaren titanium project in the Eucla Basin of Western Australia, and has recently added the Zircon rich Barossa Project to its portfolio, has announced the results of its Pre-Feasibility Study (PFS) for the McLaren Titanium Project. The PFS confirms the project’s potential to be a globally competitive titanium operation with a long mine life. The study highlights that the project is set to generate A$2.78 billion in total revenue and A$899.7 million in EBITDA over an initial 15.9-year mine life, with a payback period of 3.7 years.
The PFS was underpinned by an expanded Mineral Resource Estimate (MRE) of 529 million tonnes at 4.5% HM (Indicated and Inferred), including a substantial Indicated portion totalling 249 million tonnes at 4.7% HM. A High-Level Conceptual Pit, estimated by IHC Mining, contains 185.7 million tonnes at 5.85% HM, supporting the initial mine life estimate. Conservative base case pricing assumptions, supported by an independent market report, estimate an Ilmenite Concentrate price of US$250 FOB per dry metric tonne (DMT) and a Non-Magnetic Concentrate price of US$366 per DMT.
The financial outcomes under these conservative assumptions are robust, with a pre-tax NPV8 of A$252.2 million and a pre-tax IRR of 26.0%. The Life of Mine (LoM) Net Revenue is projected at A$2.60 billion, with an average annual EBITDA of approximately A$56.5 million. The project also boasts low technical and execution risk, supported by a simplified flowsheet developed by IHC and the use of proven Dry Mining Unit techniques.
Simon Finnis, Managing Director, expressed satisfaction with the PFS results, noting that they have validated and de-risked the project. He highlighted that the updated MRE exceeded expectations and presents opportunities for further study during the upcoming Bankable Feasibility Study. Finnis stated that the outcomes should provide shareholders with confidence in the viability and robustness of the McLaren project.
