Aclara Resources announces results of PFS for Carina Project

Aclara’s COO, Hugh Broadhurst, commented: “The results of this Pre-Feasibility Study mark a defining milestone for Aclara, we are the first company in the world to publish heavy rare earth Mineral Reserves from ionic clays in accordance with NI 43-101. The depth of data, quality of engineering, and validation through pilot-scale operations give us strong confidence as we move into the feasibility stage and prepare for early works in H1 2026. Carina’s proven process, high-purity product, and sustainable design position us to deliver one of the most responsible and competitive sources of heavy rare earths globally, supporting Aclara’s integrated mine-to-magnet proposal.” Highlights: Strong Economics: After-tax Net Present Value of approximately $1.1B, using an 8% discount rate and price forecasts provided by Argus Media. Internal Rate of Return of 22% over an 18-year Life of Mine, with a payback period of 4.5 years. Initial capital cost of $548.3M, plus a $132.2M contingency, for an aggregate of $680.5M. This figure includes $64.3M in local taxes and generates $51.2M in tax credits, which are fully recovered in the first year of operation. An average annual commercial discount of $196M – equivalent to 29% of the annual gross revenue – has been applied to account for the full separation of the Carina Project’s mixed rare earth carbonate. Aclara’s plans consist of paying this separation fee to its separation project in Louisiana. The NPV associated with Aclara’s future separation facility in Louisiana is not included in the PFS. Average annual net revenue of $487M and average annual earnings before interest, depreciation, and amortization of approximately $352M. High average Net Smelter Return of $49.5 per tonne processed, against a low average production cost of $13.0 per tonne processed. The price forecast scenario developed by Argus Media is based on the European price index. Significant Production of HREEs and Light Rare Earths: Average annual production 1 of 4,265 tonnes rare earth oxides contained in an MREC product with very high content of DyTb and NdPr of 4.1% and 27.5%, respectively. Average annual production 1 of magnetic elements as well as other strategic HREEs contained in the MREC product: 149 tonnes Dysprosium and 25 tonnes of Terbium; 1,170 tonnes Neodymium and Praseodymium; and Other strategic HREE: 170 tonnes of Samarium, 171 tonnes of Gadolinium, 10 tonnes of Lutetium and 1,098 tonnes of Yttrium. Carina’s future production of DyTb will represent 11% of China’s 2024 official DyTb production.