Australian Rare Earths releases compelling PFS, maiden ore reserve on Koppamurra project
Australian Rare Earths has validated its Koppamurra rare earths project as among Australia's most advanced ionic clay projects, confirming strong returns, low capital requirements and a clear path to production in a prefeasibility study (PFS).
The company also published a maiden ore reserve and updated mineral resource estimate for the project, declaring a maiden ore reserve of 26-million tonnes grading 920 parts per million (ppm) of total rare earth oxide (TREO).
Australia Rare Earths says the ore reserve is the most significant de-risking milestone yet and underpins potential mine planning, financing and development. The ore reserve grade is 22% higher than the global mineral resource average grade of 751 ppm of TREO, highlighting the optionality for mine sequencing across a large, regionally extensive orebody.
About 48% of the company’s rare earth basket comprises high-value heavy and magnet rare earths.
Moreover, the updated mineral resource estimates 243-million tonnes grading 751 ppm TREO for Koppamurra, with the resource having increased by seven-million tonnes compared with a September 2024 estimate.
PFS FINDINGS
The Koppamurra PFS finds an after-tax net present value of A$858-million for the project, an internal rate of return of 99% and a payback period of 0.9 years.
The project’s initial capital expenditure is estimated at A$178-million to reach 1 860 t/y of TREO production over an initial 12-year mine life, at an all-in sustaining cost of $38.32/kg of TREO.
The PFS confirms the viability of a shallow openpit mining operation, a simple heap leach flowsheet and rapid progressive rehabilitation, which all lower technical risk on the project.
Given the project’s large resource base, there is a clear mine life extension potential.
Australian Rare Earths says Koppamurra has a viable capital efficiency ratio rarely seen in the resources sector.
The company says it will now accelerate offtake discussions with strategic partners as pilot-scale operations deliver mixed rare earth oxide samples to potential customers. Pilot-scale operations are due to start imminently at ANSTO’s new world-class piloting facility in Sydney – marking a first of its kind piloting programme for an Australian ionic clay rare earths project.