Published On: April 6th, 2024
Vital Metals Limited (ASX: VML) (Vital Metals or the Company) is a rare earth exploration and development Company currently focusing on the Nechalacho Rare Earths Project in Canada’s Northwest Territories. The Company recently announced a significant increase in the Mineral Resource Estimate (MRE) for the Tardiff Upper Zone Deposit of the Nechalacho Project.
Figure 1: Updated Mineral Resource Estimate For The Tardiff Upper Zone
The updated estimates, prepared by SLR Consulting (Canada) Ltd., consider various factors, including cost and recovery considerations. Unlike the previous estimate, which used simplified criteria, this new approach aligns closely with potential project costs and recovery factors, providing a more accurate assessment of resources.
- The base resource estimate was constructed using first principles cost, metal recovery factors, payability assumptions and operational data to generate a net metal revenue (NMR) of CAD 115 per tonne. The estimate was reported within an optimised pit shell
- The estimate includes a total resource tonnage (across all categories) of 212.7 Mt grading 1.17% TREO containing 2.48 Mt TREO contains more than 623,000 tonnes of NdPr
The increase in tonnage and rare earth oxides is attributed to calculating an economic cut-off using revenue values, better representation of local grades, and improved modelling techniques.
The MRE update incorporates all drilling data up to the end of the 2022 drilling season. The Company expects to announce another MRE update in 2024, including all drilling data completed after 2022.
The Essential Role of Rare Earth Elements (REEs)
Rare Earth Elements (REEs) are indispensable in modern technologies, from electric vehicle motors to renewable energy solutions. Key REEs like neodymium and praseodymium are crucial in high-strength magnets and are vital for green energy technologies. REEs also play roles in catalytic converters, specialty glass, and telecommunications, highlighting their diverse applications in a world driving toward heightened interconnectedness, and the evolution to edge processing concurrent with AIoT maturation and progress in automation advancement.
There needs to be more supply and demand for rare earth elements. Given their critical importance, securing a stable supply of rare earth metals has become a strategic priority for many countries, especially as geopolitical tensions and supply chain disruptions underscore the vulnerability of relying on a few key producers. The importance of supply chain diversification is highlighted by recent announcement a number of governments providing critical financial support for the development of rare earth project development and processing infrastructure across a number of countries.
REE supply and processing capacity is highly concentrated, and Vital Metals Limited has an opportunity to diversify supply through the development of a larger scale rare earths project at Nechalacho that could deliver into a North American rare earths supply chain. As such this project is well positioned to aid global critical minerals supply to meet increasing demand as the world transitions towards a greener, technology-driven future.
Companies like Vital Metals Limited are significantly advancing the rare earths industry.
Nechalacho Rare Earths Project
Figure 2: Location of the Tardiff deposit at Vital’s Nechalacho Rare Earths Project, Canada
The Company is looking to focus on scoping the development potential of the LREE-rich Tardiff deposit on the Nechalacho Project. With a global resource base of 212.7 million tonnes at 1.167% Total Rare Earth Oxide (TREO), Tardiff is among the largest higher-grade rare earth deposits globally with an exceptional NdPr:TREO ratio of ~25%.
Growth Trajectory Compared to Previous Estimate
The results are striking compared to the current estimate for February 2023. The updated estimate reveals,
- 79% surge in total mineral resource tonnes, reaching 213 million tonnes with a 1.17% Total Rare Earth Oxides (TREO) content
- 49% increase in total contained rare earth oxides, now at 2.48 million tonnes
- The Tardiff deposit now contains over 623,000 tonnes of neodymium oxide and praseodymium oxide (NdPr), marking a hefty 49% increase from the earlier estimate
Figure 3: Comparison Between Current and Previous Mineral Resource Estimates
Vital Metals’ Managing Director and CEO Geordie Mark said,
“Deposit size and grade matters, and Nechalacho’s world-class character is reinforced with our latest MRE for the Tardiff Deposit, which shows its sector impact potential, particularly within a North American perspective, and is highlighted by the substantial increase in contained neodymium-praseodymium oxide, or NdPr, to more than 623,000 tonnes.
We believe that Tardiff is an outstanding asset. It represents a shallow deposit hosted within a single pit-constrained resource with a high NdPr:TREO ratio (~25%) and a size that affords potential for project size and scalability of production over a protracted period.
We will continue delivering a range of catalysts over the year, with more Tardiff drill results expected over the next few months, where high-grade mineralisation remains open in several directions from the 2023 drill grid perimeter. These data and updated geological interpretations will form the basis of targeted metallurgical work to inform a Scoping Study to be completed in late 2024.”
Vital Metals’ Prospective Strategic Agenda
Looking ahead, Vital Metals Limited is set to advance its Tardiff Project with a series of upcoming milestones.
- In the June quarter of 2024, the Company plans to disclose additional drill results from Tardiff, offering further insights into the project’s potential.
- An additional Mineral Resource Estimate (MRE) update is anticipated later in 2024. This update will incorporate drill data acquired after 2022 and contribute to refining resource assessments.
- Vital remains on track with its Tardiff scoping study, which is expected to be completed by late 2024
Investor Outlook
- Strategic Importance: Tardiff deposits hold promising potential to emerge as a cornerstone asset in the North American rare earth supply chain
- Positive Market Outlook: Given the captivating long-term prospects of the rare earth market, propelled by global decarbonisation initiatives, Vital Metals offers an enticing investment prospect for consistent growth and value generation
- Vital Metal Limited’s project development aims could aid in the maturation of the rare earths supply chain. By increasing the availability of these critical minerals, VML can support the rising global demand.
- The Company’s market capitalisation is AUD 23.58 million, with 5.9 billion shares on issue as of April 4th, 2024
About Vital Metals
Vital Metals Limited focuses on developing and exploring the Nechalacho Rare Earth Project in Canada’s Northwest Territories, notably the Tardiff deposit. Tardiff boasts one of the world’s largest, higher-grade rare earth deposits, with significant proportions of Neodymium and Praseodymium (NdPr:TREO) essential for transitioning to a technology-driven, low-emissions future.
Visit the official website to stay updated on the latest news on Vital Metals Limited.
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