Meteoric Resources NL (ASX: MEI) (Meteoric or the Company) is pleased to announce its Scoping Study results on its 100%-owned Caldeira Rare Earth Ionic Clay Project (Caldeira Project), in the state of Minas Gerais, Brazil.
Meteoric engaged leading Australian Engineering Group (Ausenco) to establish metallurgical recoveries and assist with process flowsheet development. The Australian Nuclear Science & Technology Organisation (ANSTO) has improved on previous test work and produced the Caldeira Project's first saleable MREC product that is low in impurities and represents significantly improved metallurgical recoveries.
Cautionary Statement
The Scoping Study referred to in this announcement has been undertaken to determine the viability of open pit mining and processing to a Mixed Rare Earth Carbonate (MREC). It is a preliminary technical and economic study of the potential viability of the Project. It is based on low level technical and economic assessments that are not sufficient to support estimation of ore reserves. Further evaluation work and appropriate studies are required before Meteoric will be able to estimate any ore reserves or to provide any assurance of an economic development case. Approximately 79% of scheduled production tonnes over the current 20 year mine life and incorporated into the Ausenco Financial model are in the Measured and Indicated Resource categories. The inclusion of Inferred material should not be considered a limiting factor in the viability of the Caldeira Project. The Mineral Resource Estimates underpinning the production target have been prepared by a Competent Person in accordance with the requirements in the JORC Code (2012). These include the availability of funding. While Meteoric considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved. To achieve the range of outcomes indicated in this Scoping Study, funding in the order of US$400 million will likely be required. Investors should note that there is no certainty that Meteoric will be able to raise that amount of funding when needed. It is also possible funding may only be available on terms that may be dilutive to or otherwise affect the value of Meteoric shares. It is also possible that Meteoric could pursue other 'value realisation' strategies such as a sale, partial sale or operational joint venture of the Project. If it does, this could materially reduce Meteoric's proportionate ownership of the Project. Potential funding options may also include third parties through; right to mine JV, operational JV or a processing agreement.
At this stage the Company has not yet secured any contracts and accordingly cannot make an assurance that it will have a processing contract available and, on the assumptions made, in this Scoping Study. The Company will update the market accordingly if any contracts are entered into. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study. This announcement contains forward-looking statements. Meteoric has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a 'reasonable basis' to expect it will be able to fund development of the Caldeira Project in Brazil. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of this study
Meteoric Chief Executive Officer, Nick Holthouse said, 'These outcomes demonstrate that the Caldeira Project is disruptive to the global rare earth mining industry in the true sense of the word. This Scoping Study represents a fundamental shift away from conventional understanding of flowsheet complexities, capital intensity and, perhaps most importantly, operating cost and capital intensity perceptions in the rare earth industry. While the Scoping Study base case is focused on a 5Mtpa throughput and truncated 20 year mine life, Caldeira's ability to grow beyond that mine life and product output is very much open ended due to its resource size and future exploration upside. This represents a truly unique opportunity in the rare earth sector. Being at the lowest end of the operating cost curve gives us and our future downstream partners a tremendous advantage in the inevitable periods of low pricing cycles such as being experienced at present. Impressive also are the sustainability metrics. Key to this is the ability to adopt a low intensity free dig mining process and simple low cost AMSUL flowsheet that focusses on significant reagent and water recycling powered by 100% renewable sources from the local grid. My sincere thanks go to our hardworking Projects team and consultants who have bought this Tier 1 project study to market in less than two years from acquisition.
Executive Summary
The Caldeira Project Scoping Study (Scoping Study or Study) has been led by independent engineering consultants Ausenco and is based on the Caldeira Project Mineral Resource Estimate from 13 June 2024. This Scoping Study has been based on development of an initial 5Mtpa processing facility and limited the mine life to 20 years based on the currently identified Mineral Resources delivered from six of the 69 licences which Meteoric holds within the Caldeira Project. The Study confirms the Caldeira Project has potential to be one of the lowest cost producers of rare earths globally with the ability to deliver robust economic results through the cycle. Drivers of this low cost of production include: ? The world's highest grade ionic rare earth project of scale ? An ability to bring forward high-grade production with REO grades averaging 4,500ppm TREO in the first five years ? True ionic absorption REE mineralisation delivering high metallurgical recoveries from a simple and low cost AMSUL processing flowsheet ? Low input costs including 100% renewable grid power, labour and access to infrastructure ? Free dig material with short haul distance ? Low mining strip ratio (0.12:1) ? Dry stack tails not requiring wet tailings storage facility Based on these factors, Caldeira has an estimated annual All In Sustaining Cost (AISC2 ) of US$7.00/kg of TREO in its first five years and US$9.00/kg over the 20 year LOM evaluation period. Further, capital expenditure for the construction of the initial processing facilities and mining fleet of US$297M (excluding contingency of 35%) delivers a low capital intensity which is highly supportive of the development of this project compared to alternative rare earth projects globally. The Project boasts exceptional financial metrics, driven by its world-class operating cost efficiency and minimal capital expenditure. Key metrics have been based on the following assumptions: ? TREO pricing comparing: i. independent forward looking prices as forecast by Adamas Intelligence Inc (Adamas) and discounted by 40% and ii. current spot price at 30 June 2024 over the life of the project An estimated Brazilian corporate tax rate of 34%, which excludes any potential Brazilian tax incentive reductions An ungeared project financing solution and A real discount rate of 8%
Based on independent market research from Project Blue Consulting the Caldeira project sits well within the first quartile of known projects on an operating cost per kg/TREO basis and at an AISC of US$9.00/kg TREO the Caldeira Project is currently the lowest known cost producer outside China. These positive metrics are further enhanced in the first five years of operations when operating costs are US$5.50/kg and AISC of US$7.00/kg due to preferential mining of higher grade ores.
Mineral Resource Development
At a 1,000ppm TREO Cut-off grade the Measured, Indicated and Inferred Resource is comprised of 619Mt @ 2,538ppm TREO and a Magnetic Rare Earth Oxide (MREO) component of 600ppm. The Scoping Study mine plan includes ore feed from only the Capao do Mel and Soberbo licence areas only. Volumes and grades from these areas alone were deemed suitable to supply both the required tonnages and high grades for the targeted 20 year mine life with Figuera resource update yet to be finalised and not yet available for the Study. The planned addition of the Figueira resource for subsequent studies will only extend the elevated feed grade strategy for the Project. Measured and Indicated Mineral Resources comprising of 11Mt Measured @ 3,888ppm TREO and 160Mt @ 2,812ppm TREO respectively are accessible from surface and adjacent to the proposed plant site. A further 200Mt @ 2,309ppm TREO sits in the Inferred category within these licence areas and represents future upside in near mining areas to support potential expansion or mine life extension. The Scoping Study mine life is currently limited to 20 years and is not Resource constrained. The modelling reflects the fact that Measure and Indicated Resources have only been updated for two of the six Resource Licences currently available. There is clear and considerable scope to expand beyond this timeframe with the addition of more current resource areas and ongoing conversion of the yet untested 63 remaining licences.
Contact:
Michael Vaughan
Chief Executive
Tel: +61 428 964 276
Email: nholthouse@meteoric.com.au
The information in this release that relates to Mineral Resource Estimates at the Cupim Vermelho Norte, Dona Maria 1 & 2 and Figueira prospects was prepared by BNA Mining Solutions and released on the ASX platform on 1 May 2023. In addition, the information in this release that relates to Mineral Resource Estimates at the Soberbo and Capao del Mel deposits was prepared by BNA Mining Solutions and released on the ASX platform on 14 May and 13 June 2024 respectively. The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resources in this publication. The Company confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and context in which the BNA Mining Solutions findings are presented have not been materially modified. This release includes exploration results and estimates of Mineral Resources. The Company has previously reported these results and estimates in ASX announcements dated 16 December 2022, 1 May 2023, 27 June 2023, 24 July 2023, 31 August 2023, 27 September 2023, 8 December 2023, 14 December 2023, 30 January 2024, 29 February 2024, 14 May 2024 and 13 June 2024. The Company confirms that it is not aware of any new information or data that materially affects the information included in previous announcements (as may be cross referenced in the body of this announcement) and that all material assumptions and technical parameters underpinning the exploration results and Mineral Resource estimates continue to apply and have not materially changed. Some statements in this document may be forward-looking statements. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as 'will', 'expect', 'anticipate', 'believe' and 'envisage'. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Meteoric's control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.
METEORIC RESOURCES NL 
