Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased to announce the results of a preliminary economic analysis (the “PEA”) on its regolith-hosted ion adsorption clay project located in the State of Goiás, Brazil, known as the Carina Module (the “Project”).
The technical report titled “Preliminary Economic Assessment – Carina Rare Earth Element Project – Nova Roma, Goiás, Brazil” (the “Report” or “Carina Module PEA”) and dated January 12, 2024 and was prepared in accordance with National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”) by G21 Consultoria Mineral (“GE21”), a specialized, independent mineral consulting company located in Belo Horizonte, Brazil. The Report, which has an effective date of November 3, 2023, supports the disclosure made by Aclara in its December 12, 2023 press release announcing the maiden mineral resources estimate (MRE) for the Project (“December 2023 Press Release”). There are no material differences in the mineral resources or results of the preliminary economic assessment as described in the Report and the results disclosed in the December 2023 Press Release. The Report has been filed, and can be found under the Company’s profile, on SEDAR+ (www.sedarplus.ca) and on Aclara’s website (www.aclara-re.com).
Highlights
- Robust economics
- After-tax Net Present Value of ~US$1.2 billion using an 8% discount rate
- 29% internal rate of return over the 17-year life of mine
- Low initial capital costs of US$576 million with a payback period of 3.6 years
- Average annual1 net revenue and EBITDA of US$474 million and US$340 million, respectively
- Low average production cost of US$13.1 per tonne
- Long-term rare earth price forecasts provided by Argus Media and Adamas Intelligence, underpinned by compelling supply/demand fundamentals
- Significant production of magnetic REEs
- Average annual1 production of 208 tonnes DyTb representing approximately 13.7% of China’s 2023 official production2
- Average annual1 production of 1,190 tonnes NdPr contributing to a balanced mix of light and heavy REEs in the final product
- High product quality
- Concentration of REEs in the mixed carbonate of 91.9%3
- Very high content of DyTb and NdPr at 4.7% and 26.4%, respectively
- High purity product facilitates further separation and recoveries
- Low environmental impact
- Process designed to minimize environmental impact: it does not use explosives; there is no crushing nor milling; approximately 95% of the water used is recirculated; the main reagent is a common fertilizer; no liquid residue is produced, negating the need of a tailings dam
- Minimal CO2 footprint is supported by a combination of low energy consumption and a high percentage of renewable energy within the Goiás power grid
- Expedited path to early production
- The pilot plant, currently in operation, de-risks metallurgical recoveries
- The State of Goiás has fully approved another ionic clay REE producer (Serra Verde), thereby establishing a significant precedent that provides a positive permitting background for new projects in this State
- Commissioning estimated to commence in 2029
- Upside potential
- Drilling campaign underway to increase mineral resources
- Metallurgical optimizations have been identified
