An initial economic study for Vital Metals’ (ASX: VML) Tardiff project in the Northwest Territories outlines output that would make it one of the largest rare earth concentrate producers outside China.
Tardiff, part of Vital’s larger Nechalacho project about 110 km northeast of Yellowknife, would produce 56,000 tonnes of concentrate annually, grading 26.4% total rare earth oxides (TREO) and 3.3% niobium pentoxide, the company said Monday.
Vital shares gained 5% to A$0.11 apiece on Monday in Sydney, for a market capitalization of A$12.38 million.
The proposed open pit mine with an initial capital cost of $291 million would have a post-tax net present value of $445 million, an internal rate of return of nearly 26% and an 11-year life.
“[The study] is a first step towards Vital playing a key role in building a critical minerals supply chain in Canada,” Vital’s managing director Lisa Riley said in a release. “Recommended next steps will aim to capture further economic upside by optimizing rare earth element and niobium recoveries, lifting concentrate grades and delivering higher payability for the economic commodities.”
Comparison
Tardiff’s output would yield about 14,800 tonnes of contained TREO annually, representing approximately 3% to 4% of global rare earth oxide production based on 2024 estimates. By comparison, MP Materials’ (NYSE: MP) Mountain Pass mine in the United States produced about 43,000 tonnes of concentrate containing an estimated 4,000 to 5,000 tonnes of TREO, or roughly 11% of the global total.
If developed, Tardiff would rank among the largest rare earth concentrate producers outside China, with the added value of niobium by-product potential.
Nechalacho was briefly Canada’s first-ever producing rare earths mine on a demonstration-scale basis during 2021-2023. But mining was halted due to cost overruns, market difficulties and the bankruptcy of Vital’s processing subsidiary in Saskatoon, Saskatchewan.
The global production of rare earths, essential components in permanent magnets and other green energy technologies, is mostly controlled by China, and Mountain Pass is the only commercially producing rare earths mine in North America.
56% resource bump
The study’s release comes about seven months after an update lifted measured and indicated resources at Tardiff’s Upper Zone by 56% to 48.6 million tonnes, according to Australia’s Joint Ore Reserves Committee mining code. That resource grades at 0.26% neodymium oxide, 0.07% praseodymium oxide and 0.25% niobium pentoxide, or 1.32% total rare earth oxide (TREO), for 640,000 tonnes of contained TREO.
Inferred resources total 144.1 million tonnes grading 0.26% neodymium, 0.07% praseodymium and 0.32% niobium, or 1.31% TREO, for 1.88 million tonnes of TREO.
Mining would extract only 15% of Tardiff’s total resource, the study says. The open pit design could produce 14,000 tonnes per day at a low strip ratio of 0.3:1.
Supply chain group
A key component of the project is the formation of a Canadian Rare Earth Supply Chain Consortium, in which Vital plays a founding role, to enhance collaboration between industry and government to accelerate the scale-up of commercial production. Last month, Appia Rare Earths & Uranium (CSE: API), Commerce Resources (TSXV: CCE), Defense Metals (TSXV: DEFN) and Vital announced the launch of the strategic research consortium.
The scoping study also envisions a logistics plan for the transportation of concentrate by barge across Great Slave Lake to Hay River, and then by rail to a processing facility further south.
A similar supply chain was functioning when Vital was mining at Nechalacho during 2021-2023. Rare earths were shipped to Vitals’ separation plant in Saskatoon.
Avalon Advanced Materials (TSX: AVL) holds the rights to mineralization below 150 metres at Nechalacho.
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An initial economic study for Vital Metals’ (ASX: VML) Tardiff project in the Northwest Territories outlines output that would make it one of the largest rare earth concentrate producers outside China.
Tardiff, part of Vital’s larger Nechalacho project about 110 km northeast of Yellowknife, would produce 56,000 tonnes of concentrate annually, grading 26.4% total rare earth oxides (TREO) and 3.3% niobium pentoxide, the company said Monday.
Vital shares gained 5% to A$0.11 apiece on Monday in Sydney, for a market capitalization of A$12.38 million.
The proposed open pit mine with an initial capital cost of $291 million would have a post-tax net present value of $445 million, an internal rate of return of nearly 26% and an 11-year life.
“[The study] is a first step towards Vital playing a key role in building a critical minerals supply chain in Canada,” Vital’s managing director Lisa Riley said in a release. “Recommended next steps will aim to capture further economic upside by optimizing rare earth element and niobium recoveries, lifting concentrate grades and delivering higher payability for the economic commodities.”
Comparison
Tardiff’s output would yield about 14,800 tonnes of contained TREO annually, representing approximately 3% to 4% of global rare earth oxide production based on 2024 estimates. By comparison, MP Materials’ (NYSE: MP) Mountain Pass mine in the United States produced about 43,000 tonnes of concentrate containing an estimated 4,000 to 5,000 tonnes of TREO, or roughly 11% of the global total.
If developed, Tardiff would rank among the largest rare earth concentrate producers outside China, with the added value of niobium by-product potential.
Nechalacho was briefly Canada’s first-ever producing rare earths mine on a demonstration-scale basis during 2021-2023. But mining was halted due to cost overruns, market difficulties and the bankruptcy of Vital’s processing subsidiary in Saskatoon, Saskatchewan.
The global production of rare earths, essential components in permanent magnets and other green energy technologies, is mostly controlled by China, and Mountain Pass is the only commercially producing rare earths mine in North America.
56% resource bump
The study’s release comes about seven months after an update lifted measured and indicated resources at Tardiff’s Upper Zone by 56% to 48.6 million tonnes, according to Australia’s Joint Ore Reserves Committee mining code. That resource grades at 0.26% neodymium oxide, 0.07% praseodymium oxide and 0.25% niobium pentoxide, or 1.32% total rare earth oxide (TREO), for 640,000 tonnes of contained TREO.
Inferred resources total 144.1 million tonnes grading 0.26% neodymium, 0.07% praseodymium and 0.32% niobium, or 1.31% TREO, for 1.88 million tonnes of TREO.
Mining would extract only 15% of Tardiff’s total resource, the study says. The open pit design could produce 14,000 tonnes per day at a low strip ratio of 0.3:1.
Supply chain group
A key component of the project is the formation of a Canadian Rare Earth Supply Chain Consortium, in which Vital plays a founding role, to enhance collaboration between industry and government to accelerate the scale-up of commercial production. Last month, Appia Rare Earths & Uranium (CSE: API), Commerce Resources (TSXV: CCE), Defense Metals (TSXV: DEFN) and Vital announced the launch of the strategic research consortium.
The scoping study also envisions a logistics plan for the transportation of concentrate by barge across Great Slave Lake to Hay River, and then by rail to a processing facility further south.
A similar supply chain was functioning when Vital was mining at Nechalacho during 2021-2023. Rare earths were shipped to Vitals’ separation plant in Saskatoon.
Avalon Advanced Materials (TSX: AVL) holds the rights to mineralization below 150 metres at Nechalacho.