An updated preliminary economic assessment (PEA) has confirmed a larger-scale production profile for the Ashram rare earths and fluorspar project, in Québec, Canada.

ASX-listed Mont Royal Resources estimates a capital requirement of C$1.23-billion for the project for it to produce 17 466 t/y of saleable rare earth oxide (REO) over an initial 30-year mine life. Of this, it comprises 4 035 t neodymium and praseodymium oxide, 100 t dysprosium and terbium oxide and 230 t yttrium oxide.

Notably, the initial mine life estimation is based on 93% of the resource being scheduled in the indicated category. The base case estimation uses only 25% of the current resource, highlighting significant long-term expansion optionality.

The PEA finds the Ashram project has an after-tax net present value of C$2.03-billion, an internal rate of return of 22% and a payback period of 3.9 years from start of production.

The project is anticipated to generate revenue of C$24.6-billion over its lifetime at an earnings margin of 62.7%.

The PEA also outlines a competitive cost position for Ashram, with all-in sustaining cost estimated at C$18.58/kg of REO sold. The cost profile benefits from a low strip ratio, favourable mineralogy, production of high-grade rare earth concentrate and an integrated hydrometallurgical refining strategy.

Ashram is considered one of the largest monazite-dominant rare earth deposits in North America. The PEA confirms the project offers exposure to a high-value magnet rare earth basket led by neodymium and praseodymium with additional dysprosium and terbium content, as well as potential future fluorspar value upside.

Mont Royal envisions on-site concentration to be done at Ashram and downstream hydrometallurgical refining in Saguenay, Québec.

The company will include evaluation of a dedicated fluorspar recovery circuit in future studies on the project and conduct broader district-scale exploration across several targets within the Eldor carbonatite complex.

For now, Mont Royal is progressing toward a prefeasibility study for Ashram while undertaking ongoing metallurgical optimisation, engineering refinement and other workstreams to further derisk the flowsheet and development pathway.

Mont Royal is also advancing a baseline environmental study and other permitting and stakeholder engagement activities across the Ashram and Saguenay development footprint.

"The updated PEA marks a major step forward for the Ashram project, confirming a large-scale, long-life development with strong underlying economics and a clear pathway to advancement. The study has highlighted Ashram's combination of scale, favourable mineralogy and competitive cost profile, supporting its potential to become a meaningful long-term supplier of rare earth products into Western supply chains," says Mont Royal MD Nicholas Holthouse. 

Importantly, he sees further upside beyond the base case, including opportunities in fluorspar, resource expansion and downstream partnerships and collaboration.

"This is a project that can have a meaningful and long-lived impact on the development of rare earth industries and technologies within Québec, Canada, North America and Europe.

"Our focus now is continuing to work with First Nations and government agencies on developing infrastructure strategies and on progressing the project into prefeasibility, advancing permitting and continuing engagement with strategic and offtake partners."