• Tiros PEA delivers $1.02bn post-tax NPV8 and 44.2% IRR
• Initial 500,000tpa operation targets less than 1% of 1.4Bt resource
• Low-strip, near-surface deposit supports simple processing and dual revenue streams

Special Report: Resouro Strategic Metals has passed a major milestone at its Tiros project in Brazil, with a preliminary economic assessment confirming the potential for a billion-dollar rare earths and titanium operation.

The PEA for the 1.4 billion tonne critical minerals resource delivers a post-tax net present value (NPV8) of US$714.9 million (~A$1.02 billion) and a robust post-tax internal rate of return (IRR) of 44.2% (pre-tax 62.7%).

Resouro’s (ASX:RAU) flagship project is one of the world’s largest JORC combined rare earths and titanium deposits with 1.4 billion tonnes in the higher-confidence Measured and Indicated categories.

The proposed starter operation is designed to produce approximately 90,000 tonnes of titanium dioxide (TiO2) concentrate and 3,636 tonnes of total rare earth oxide (TREO) products annually from a 500,000 tonne per annum operation over an initial 20-year mine life.

The study comes as Brazil seeks to position itself as an alternative supplier of critical minerals outside of dominant producer China.

The initial capital cost comes in at US$159.6 million (A$227.8 million) for the project in Brazil’s powerhouse mining region of Minas Gerais, home to existing infrastructure supporting the industry and a skilled workforce.

Upsize potential

Tiros’s vast resource averages a notable 12% TiO2, 4,000ppm TREO and 1,100ppm MREO. But within that is a high-grade domain of 103 million tonnes with 23% TiO2, 9,100ppm TREO and 2,400 ppm MREO.

The PEA details a strategically planned starter operation from this high-grade domain. Importantly, the plan targets only approximately 9.5Mt of Run-of-Mine (ROM) feed over 20 years. That’s less than 1% of Tiros’s Measured and Indicated Resource, leaving significant scope for long-term expansion of operations.

There’s also significant potential for resource growth, with 500 million tonnes in the Inferred category grading 12% TiO2, 3,700 ppm TREO and 1,000 ppm MREO. Meanwhile recent infill and step-out drilling have boosted confidence in the resource by identifying more high-grade mineralisation close to surface.

Resouro said the starter strategy was designed to support unlocking Tiros’s full potential in the longer run by minimising upfront capital costs, generating cash flow and reducing risk on its road to development.

 Keeping it simple

The PEA incorporates open-pit mining with free digging of the near-surface mineralisation. Similarly, the flowsheet assumes a conventional processing route from grinding and sizing through to solid-liquid separation.

The operation is expected to achieve titanium dioxide recoveries of 68.7% and rare earth element recoveries of 67% into a mixed rare earth carbonate (MREC) product, with these saleable critical minerals products underpinning a dual-revenue model.

Long-term vision

Resouro’s Chief Executive Officer Christopher Eager said: “The PEA confirms Tiros as a globally significant rare earths and titanium project with strong economics, modest initial capital requirements and substantial long-term growth potential.

“Importantly, the study is based on only a small portion of our existing Measured and Indicated Resource, demonstrating the opportunity to develop an initial operation while preserving significant future expansion optionality.

“We believe the staged development strategy provides a practical pathway toward production, reduces execution risk and establishes a platform from which the full value of the Tiros Project can be progressively unlocked.”

What’s next

Upcoming initiatives to move Tiros further forward include infill drilling in the defined starter pit areas, additional sample generation, more metallurgical test work, flowsheet optimisation and product specification work.

The PEA incorporates an ecologically sensitive design with dry-stack tailings but environmental studies and stakeholder engagement is continuing.

Resouro will also assess the staged expansion opportunities it has open to it beyond the initial 500,000 tonne per annum operation. These include future production scenarios from 5 to 10 million tonnes per annum.

A future Pre Feasibility Study is expected to focus on those upscaled production scenarios as well as technical matters including flowsheet optimisation, beneficiation improvements and product specification work.

The PEA was prepared by a team led by Canadian-based engineering group Norda Stelo.