Aclara Resources Inc (TSX:ARA, OTC:ARAAF) revealed promising results of a preliminary economic analysis (PEA) conducted on its ionic clay rare earths project, the Carina Module, located in Brazil.
The PEA highlights an after-tax Net Present Value (NPV) of approximately US$1.2 billion, using an 8% discount rate. The internal rate of return (IRR) over the 17-year mine life is an impressive 29%, with low initial capital costs of US$576 million and a quick payback period of 3.6 years.
Aclara anticipates an average annual net revenue of US$474 million and EBITDA of US$340 million, accompanied by a low average production cost of US$13.1 per tonne.
The Carina Module is projected to contribute significantly to the rare earth market, with an average annual production of 208 tonnes of dysprosium and terbium (DyTb) and 1,190 tonnes of neodymium and praseodymium (NdPr).
The mixed carbonate concentration of REEs is an impressive 91.9%, with very high content of DyTb (4.7%) and NdPr (26.4%), facilitating further separation and recoveries.
Aclara is also focused on environmentally friendly practices, with a process that avoids explosives and milling, recirculates approximately 95% of water used, and utilizes a common fertilizer as the main reagent. The CO2 footprint is minimal, supported by low energy consumption and a high percentage of renewable energy within the State of Goiás power grid.
The pilot plant, currently in operation, de-risks metallurgical recoveries. The State of Goiás has fully approved another ionic clay REE producer, setting a positive precedent for permitting.
Meanwhile, a drilling campaign is underway to increase mineral resources, and metallurgical optimizations have been identified.
"As a company committed to making a lasting impact in the rare earths market, our strategic focus on sustainability and responsible production aligns with the success seen in the project PEA,” Aclara CEO Ramon Barua said in a statement.
"We recognize the importance of minimizing environmental impact. The project design emphasizes eco-friendly practices, avoiding explosives and milling, maximizing water recirculation, and employing a common fertilizer as the main reagent.
"With commissioning estimated by 2029, we are confident that the project will play a pivotal role in meeting the growing demand for high-quality rare earths, further solidifying our position as a key supplier of these critical elements."
In the coming months, Aclara plans to advance the Carina Module through a series of strategic steps. In the first quarter of 2024, the company aims to produce REE carbonate samples by processing ionic clays at its pilot plant located in Chile. Simultaneously, environmental baseline, radiography, archaeological, speleological, and hydrogeological studies will be initiated to gather essential data.
Moving into the second quarter of 2024, Aclara plans to commence a prefeasibility study, laying the groundwork for comprehensive project evaluation. Additionally, the company intends to complete a 9,090-meter reverse circulation drilling campaign during the same period.