Scoping study spells out Tanbreez as a winning rare earths operation

• Tanbreez scoping study highlights a pre-tax NPV of US$2.4-3.0 billion at 10% and 8% discount rate and IRR of 162%, mine life of 19 years
• Results present the viability of the Greenland project as a standalone rare earths operation
• Project is underpinned by its magnet rare earths oxides

Special report: A scoping study has outlined the strong potential of its Tanbreez project in Greenland to produce valuable magnet rare earths.

Key highlights for the proposed standalone rare earths mining and processing operation to produce a eudialyte concentrate for export includes a net present value of US$2.4bn at a 10% discount rate and 162% pre-tax internal rate of return.

Capex is estimated at US$327.04m with a payback period of three years, while operating costs are expected to sit at about US$31.61/t of concentrate.

Critical Metals Corp, of which European Lithium (ASX:EUR) is a major shareholder, commissioned the scoping study on the indicated resource at Tanbreez.

“I am delighted to report the outstanding results from the Tanbreez scoping study with the project economics, low capital cost and projected REE and rare metal revenue as a major milestone for our company and its stakeholders,” chairman Tony Sage said.

“Tanbreez is truly proving to be an exceptional asset in a safe jurisdiction with strategic partners and government agencies focused on establishing secure western supply chains for these critical materials.

“The partial standout value alone in Tanbreez’s magnet rare earth oxides – neodymium, praseodymium, dysprosium, and terbium of up to 75% is critical for permanent magnet production adding significantly to our bottom-line estimated profitability.”

Scoping study

The preliminary technical and economic study was undertaken to provide an overview of the future value of the asset and is currently envisioned as mining an initial 0.25Mt of kakortokite (the host rock for the 45Mt eudialyte resource) per annum that will ramp-up to 10Mtpa of kakortokite sourced primarily from the Fjord and Hill deposits over 19 years.

All told, it will involve the extraction of roughly 140Mt of kakortokite, including 24.25Mt of eudialyte with the potential to contribute significantly to Greenland’s economy.

The eudialyte concentrate includes 75% of the primarily magnet rare earth oxides – neodymium, praseodymium, dysprosium, and terbium – critical for permanent magnets used in EVs, wind turbines and various consumer electronics.

Tanbreez also benefits from having no radioactive by-products, which is expected to support permitting and public acceptance.

Further beneficiation of the concentrate will be carried out in the US or Europe, avoiding the need for chemical processing at the site and enhancing its environmental acceptability.

Fjord and Tanbreez Hill are both contained within a mineralised Kakortokite host unit covering 5km by 2.5km and 270m thick.

This host unit possesses an estimated 4.7Bt of kakortokite, though there is currently no certainty of this mineralisation being economic outside of the defined resource.

EUR’s study is based on the construction of a processing plant near the deposit to concentrate the extracted minerals.

Port facilities at the fjord, which is ice-free year-round, will enable the shipment of ore via cargo vessels, while a worker accommodation camp will provide housing, food, and medical services for personnel.

Energy supply will rely on diesel generators or potentially hydropower, depending on feasibility.

Furthermore, waste management systems, including tailings storage and water treatment facilities, will be essential to comply with environmental regulations.

This article was developed in collaboration with European Lithium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.