Mont Royal Nears Updated PEA Release as BD-Zone Shows Resource Growth Potential

Updated PEA Targets Cost and Risk Reduction

Mont Royal Resources (ASX:MRZ) is closing in on the release of an updated Preliminary Economic Assessment (PEA) for its flagship Ashram Rare Earths and Fluorspar Project in Québec, expected late May. This refreshed PEA incorporates revised assumptions around site access, logistics, processing throughput, and the location of the downstream hydrometallurgical facility. These changes are designed to trim capital and operating costs while lowering project execution risks, a welcome development for a deposit of this scale and complexity.

The PEA update is approximately 80% complete, with key work packages including mining, geology, and radiation management now finalised. Consulting groups such as BBA, DRA, and L3 remain engaged to refine the mining, flotation, and hydrometallurgical plant designs respectively, while financial modelling is underway to reflect the new assumptions.

BD-Zone Emerges as a Significant Resource Upside

Alongside the PEA progress, an internal geological review has cast fresh light on the BD-Zone, a sub-domain surrounding the current Ashram Mineral Resource Estimate (MRE). Historically excluded from the resource due to lower grade, the BD-Zone exhibits high concentrations of prized rare earth elements; Neodymium, Praseodymium (NdPr), Terbium, and Dysprosium (TbDy); which are critical for permanent magnets and clean energy technologies.

Mont Royal notes that much of the BD-Zone mineralisation lies within the current conceptual pit design but is classified as non-resource material. The zone's mineralogy, dominated by coarse-grained REE-fluorocarbonates such as bastnaesite and parisite, is well suited to flotation processing. This has prompted plans for targeted metallurgical test work to assess its potential to deliver a commercially viable concentrate and drive resource growth.

This development builds on earlier findings from the company's internal review, which highlighted the BD-Zone's potential as a discrete sub-domain with favourable metallurgy, and is a key focus for Mont Royal as it seeks to enhance project economics. The significance of this zone was previously reported in the company's February update, where the mineralogy and high-value element distribution were first detailed BD-Zone growth potential.

Strategic MOU with Saguenay Port Authority

In a parallel infrastructure advance, Mont Royal signed a non-binding Memorandum of Understanding (MOU) with the Saguenay Port Authority during the quarter. The agreement contemplates locating the Ashram Project's hydrometallurgical facility within the port’s industrial zone, capitalising on its year-round access, rail and road connectivity, and essential utilities such as power, water, and gas.

This move aligns with Canada's strategic push to develop integrated critical mineral value chains in Québec and leverages the port's position as a key export gateway for northern Québec's critical minerals. The MOU remains subject to further technical, commercial, and regulatory due diligence before formalisation.

The importance of this partnership was foreshadowed in Mont Royal's January announcement, which outlined the potential for Saguenay Port to reduce logistical complexity and technical risk for Ashram’s downstream processing Saguenay Port MOU.

Road Access Funding Extended to Support Logistics

Mont Royal’s wholly owned subsidiary, Commerce Resources, secured an extension of conditional approval for C$2.6 million from Natural Resources Canada’s Critical Minerals Infrastructure Fund. This funding targets the advancement of a southern road access strategy linking the Ashram site to Schefferville, a critical step in the company’s revised logistics plan that envisions road transport of concentrate to rail facilities and onward shipment via the Port of Sept-Îles.

This approach aims to sidestep the challenges of ice-bound northern ports, reducing capital expenditure and operational risks. The funding extension follows the original approval announced in early 2025, confirming ongoing government support for Mont Royal’s infrastructure ambitions.

Corporate Strengthening and Financial Position

Mont Royal bolstered its leadership with the appointment of rare earths industry veteran Constantine Karayannopoulos to its newly formed Advisory Board. Karayannopoulos brings over 30 years of executive experience, including a tenure as CEO of Neo Performance Materials, and is expected to guide the company through critical phases of project development.

Financially, Mont Royal ended the quarter with A$5.5 million in cash, poised to rise to a proforma A$7.8 million following an expected C$2.3 million exploration tax rebate from Québec in May. Exploration expenditure was modest at A$429,000 for the quarter, reflecting a focus on advancing studies rather than field activities. The company’s cash runway is estimated at over two quarters based on current outgoings.

These developments continue to unfold against a backdrop of strong rare earth pricing, supported by supply disruptions and policy tailwinds favouring critical minerals. Mont Royal’s progress on multiple fronts underscores its commitment to unlocking value from one of North America’s largest rare earth deposits.