Astron announced the Definitive Feasibility Study (DFS) results for Phase 1 of the Donald Rare Earth and Mineral Sands Project to the ASX on 26 April 2023. The Donald Project is an advanced, globally significant critical minerals project located 300km northwest of Melbourne in the Wimmera Region of Victoria (see Figure 1).
Phase 1 of the Donald Project has the benefit of a favorably assessed Victorian Environmental Effects Statement (EES), a concluded Federal Environmental Protection and Biodiversity Conservation (EPBC) License and a granted Mining License (MIN5532). The Ore Reserve for the Donald Deposit (comprising both MIN5532 and RL2002) has increased by 15.1% while the heavy mineral Reserves have increased by 15.2% to 36.9Mt, comprising:
- Rare earth minerals (including monazite and xenotime) – 724.0kt (an increase of 12.3%)
- Ilmenite – 10.5 Mt (an increase of 18.9%);
- Leucoxene – 7.8 Mt (an increase of 13.0%);
- Rutile – 2.7 Mt (increase of 15.8%); and
- Zircon – 6.6 Mt (an increase of 15.1%);
The updated reserves estimate confirms the Donald Project’s position as a globally significant source of critical minerals, containing the third largest rare earth minerals resource outside of China and the largest zircon resource globally, underpinning commercial production for at least 58 years. This reserve
and resource position represents an ideal basis for Astron to explore and evaluate downstream opportunities in advanced materials and chemicals manufacturing in the rare earths, titanium, zirconium and hafnium industries.
The Donald Project comprises the Donald Deposit (MIN5532 and RL2002) and the Jackson Deposit (RL2003). The upgraded Ore Reserve for RL2002 brings the Donald Deposit into the reserves category, whereas the Jackson Deposit, for which a Mineral Resource has been estimated, represents further project upside potential from future development opportunities including production expansion and downstream processing.
This Ore Reserve upgrade reinforces the potential for a phased, long-term approach to the commercialization of the Donald Project and is supported by a Pre-Feasibility Study for Phase 2 of the Project:
- The Donald Project comprises the Donald Deposit, contained within the tenements RL2002 and MIN5532, and the Jackson Deposit, contained within the tenement RL2003,
- The Donald Deposit is host to Phase 1 of the Donald Project, in MIN5532, and Phase 2 of the Donald Project, in RL2002,
- An updated Ore Reserve of 516Mt @ 4.6% HM has been estimated for RL2002 which, when combined with the Ore Reserve estimate for MIN5532, brings the total Ore Reserves for the Donald Deposit to 825Mt @ 4.5% HM,
- Phase 2 of the Donald Project involves duplication of the Phase 1 mining and mineral processing operations (Phase 2a) with the addition of a mineral separation plant to process heavy mineral concentrate from both the Phase 1 and Phase 2a Projects to final zircon and titania products (Phase 2b),
- The combined Phase 1 and Phase 2 Donald Project is forecast to generate an after tax, NPV8 of $2.2 billion over a 58-year mine life, at an IRR of 30.3%.
- The capital cost of the Phase 2 Project is estimated to be $566 million, consisting of $431 million for Phase 2a (the duplication of mining and processing operations) and $134 million for Phase 2b (construction of a mineral separation plant),
- Phase 2 construction is projected to start in 2029, with commissioning and commercial operations towards the end of 2030. It is expected that Phase 2 will be funded through internally generated cashflows,
- Following the commissioning of the Phase 2 Project in 2030, Astron’s annual life of mine production will average:
o 13,000 tpa of rare earth element concentrate (REEC) containing >60% TREO (Total Rare Earth Oxide);
o 84,600 tpa of premium zircon suitable for the ceramics market;
o 8,900 tpa of secondary zircon; and
o 260,200 tpa of titania (high-grade titanium feedstock)
- The life of mine forecast average revenue is $678 million per annum leading to an average annual EBITDA of $363 million.
Note: Unless otherwise stated, all dollar values are expressed in real Q1 2023 Australian Dollars
UPDATE:
Energy Fuels and Astron Corporation execute non-binding MOU to jointly develop the Donald Mineral Sands Project, a large heavy mineral sand deposit that has the potential to supply Energy Fuels with approximately 7,000 tonnes of rare earth-bearing monazite sand per year starting in 2026, ramping up to 14,000 tonnes per year soon thereafter.
LAKEWOOD, Colo, Dec. 27, 2023 .....Energy Fuels Inc. is a leading U.S. producer of uranium, rare earth elements ("REE"), and vanadium, is pleased to announce that it has entered into a non-binding Memorandum of Understanding ("MOU") with Astron Corporation Limited ("Astron") to jointly develop the Donald Rare Earth and Mineral Sands Project, located in the Wimmera Region of the State of Victoria, Australia (the "Donald Project"). The MOU describes indicative commercial terms and provides Energy Fuels with a binding exclusivity period to end on March 1, 2024, during which Energy Fuels will be entitled to conduct due diligence and the parties will negotiate definitive agreements.
The Donald Project is a world-class, world scale, 'shovel-ready' critical mineral deposit that Energy Fuels believes would provide it with another near-term, low-cost, and large-scale source of monazite sand in an REE concentrate ("REEC") that would be transported to the Company's White Mesa Mill in Utah, USA (the "Mill") for processing into REE oxides and other advanced REE materials and recovery of the contained uranium. Energy Fuels is announcing this non-binding MOU at this time, because Astron has determined that it is required to announce the MOU at this time under applicable Australian Securities Exchange ("ASX") rules.
With supportive U.S. government policies, and U.S. and European companies increasingly focused on security of supply, Energy Fuels is rapidly creating a new significant REE supply chain that can reduce America's reliance on REE's from China. As part of this strategy, the Company is actively securing long-term sources of REEC through offtake (Chemours), joint venture (Astron), and direct ownership (the Company's 100% owned Bahia Project in Brazil). Through these assets and potentially others, Energy Fuels is building a world significant REE oxide supply chain that the Company believes will be attractive to EV manufacturers and their Tier 1 suppliers.
THE DONALD PROJECT
With Energy Fuels' proposed investment of approximately A$180 million (approximately US$122 million at current exchange rates), and most licenses and permits in place (or at an advanced stage of completion), the Donald Project (see Figure 1 in article) is expected to soon be a new, long-term source of several critical minerals key to the clean energy transition, including REE's, titanium, zircon, and uranium. The Donald Project is expected to provide Energy Fuels with 7,000 to 14,000 metric tons ("tonnes") of REEC per year, containing 4,000 to 8,200 tonnes of total REE oxides ("TREO"), with commissioning and ramp-up expected to begin in 2026. Most of Energy Fuels' proposed investment is expected to be disbursed in 2025.
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