Tardiff Scoping Study Shows 11-Year Mine Life and US$445M Post-Tax NPV

A Rare Earth Opportunity in Canada

Vital Metals Limited has provided a detailed update on its Nechalacho Rare Earths Project, focusing on the Tardiff deposit located in the Northwest Territories of Canada. The recently completed Scoping Study outlines a robust economic case for developing one of the world’s higher-grade rare earth deposits, with a particular emphasis on neodymium and praseodymium; critical elements for permanent magnets used in electric vehicles, wind turbines, and defense technologies.

The Tardiff deposit boasts a Mineral Resource Estimate of 192.7 million tonnes at 1.3% total rare earth oxides (TREO), including approximately 636,000 tonnes of neodymium and praseodymium oxides. This positions Tardiff as a significant player in the global rare earth supply chain, especially amid growing geopolitical pressures to diversify supply away from dominant producers.

Strong Financial Metrics and Project Viability

The Scoping Study reveals compelling financial metrics – a pre-tax net present value (NPV) of US$776 million and a post-tax NPV of US$445 million, both calculated at an 8% discount rate. The internal rate of return (IRR) stands at a healthy 25.5% post-tax, with a payback period of just 39 months. These figures underscore the project's potential to generate substantial value over an initial 11-year mine life.

Capital expenditure is estimated at US$291 million, including a 35% contingency, while operating costs are projected at US$24 per dry metric tonne mined. The mine plan targets a steady-state daily ore production of 14,000 tonnes, with a low stripping ratio of 0.3 – 1, indicating efficient mining operations. The concentrate is expected to contain 26.4% TREO and 3.3% niobium pentoxide, with an average annual production of 56,000 tonnes of concentrate.

Strategic Partnerships and Indigenous Engagement

Vital Metals is actively engaging with Indigenous communities in the Northwest Territories, aiming to foster partnerships that support local economic development and job creation. The company plans for Indigenous groups to have ownership stakes in key infrastructure, reflecting a collaborative approach that respects rights holders and builds long-term relationships.

Moreover, the project benefits from strong support from Canadian federal and provincial governments, which are prioritizing critical mineral supply chains. This governmental backing could translate into funding opportunities and streamlined regulatory pathways, enhancing the project's prospects.

Upside Potential and Next Steps

While the Scoping Study is preliminary and includes a significant portion of inferred resources, Vital Metals sees clear upside potential. Further infill drilling is planned to increase resource confidence and potentially extend the mine life. Additional metallurgical testing aims to improve concentrate grade and recovery rates, as well as confirm payability for niobium and zirconium, which could add value.

The company intends to commence a Pre-Feasibility Study in 2025, alongside continued exploration of adjacent zones such as North T and South T, which were not included in the current resource estimate. These efforts could unlock additional resources and enhance project economics.

Navigating Market Dynamics

The rare earth market is experiencing increasing demand and price pressures, driven by geopolitical factors and strategic moves such as the US Department of Defense’s recent offtake agreement setting a floor price for neodymium-praseodymium at US$110 per kilogram. Although Vital Metals used more conservative price assumptions in its base case, the current market environment suggests potential for improved project returns.

Vital Metals’ positioning within the emerging North American rare earth supply chain, combined with its robust project fundamentals and collaborative approach, makes the Tardiff deposit a project to watch as global demand for critical minerals intensifies.