Resouro Strategic Metals has unveiled a robust Preliminary Economic Assessment for its Tiros Titanium and Rare Earths Project, signalling a post-tax NPV of US$715 million and a 44.2% IRR over 20 years. Meanwhile, binding agreements for mining and processing at the Novo Mundo Gold Project promise to unlock additional value.
- PEA for Tiros Project shows US$715M post-tax NPV and 44.2% IRR
- Measured and Indicated resources increased 37% to 1.4 billion tonnes at 12% TiO2
- Binding mining and processing agreements signed for Novo Mundo Gold Project
- Simon Stilwell appointed Chair; Chris Eager confirmed as CEO
- FY26 loss of CAD 4.04 million with CAD 1.09 million cash on hand
Tiros Project’s PEA Validates Economic Potential
Resouro Strategic Metals (ASX:RAU, TSX-V:RSM) has delivered a Preliminary Economic Assessment (PEA) for its flagship Tiros Titanium and Rare Earths Project in Minas Gerais, Brazil, revealing a post-tax net present value (NPV) of US$714.9 million at an 8% discount rate and an internal rate of return (IRR) of 44.2% over a 20-year mine life. The study outlines a conventional open-pit operation processing 500,000 tonnes per annum targeting a high-grade zone that constitutes less than 1% of its vast 1.4 billion tonne measured and indicated resource.
The dual-revenue model envisages producing both titanium dioxide (TiO2) concentrates and rare earth element (REE) products, with recoveries of 68.7% for TiO2 and 67% for REEs. Initial capital expenditure is estimated at US$191 million (gross), with sustaining capital of US$59 million and operating costs averaging US$109 million annually. The project’s simple mining method, favourable jurisdiction, and environmentally conscious design featuring dry-stack tailings underpin its attractiveness.
Resource Upgrade and Exploration Progress
Resouro’s updated JORC Mineral Resource Estimate (MRE) published in April 2025 boosted measured and indicated resources by nearly 37% to 1.4 billion tonnes grading 12% TiO2 and 4,000 ppm total rare earth oxides (TREO), including a high-grade domain of 104 million tonnes at 23% TiO2 and 9,100 ppm TREO. This positions Tiros among the world’s largest undeveloped titanium and rare earth deposits.
The company has advanced metallurgical testwork and flowsheet development, culminating in the PEA. Environmental impact assessments and permitting pathways are underway, with state-level licensing expected in Minas Gerais. Resouro plans to progress to a pre-feasibility study focusing on flowsheet optimisation, acid recycling, and staged scale-up scenarios.
Novo Mundo Gold Project Moves Toward Production
Beyond Tiros, Resouro has made significant strides at its 100%-owned Novo Mundo Gold Project in Mato Grosso, Brazil. In June 2026, the company executed binding mining, transport, and processing agreements with Future Mining Ltda. and Buriti Gold Mineração Ltda., establishing a framework for mining and processing gold-bearing material under Brazilian Department of Mines authorization.
The agreements contemplate a basic economic study, mine plan, and processing plan for shallow gold material, though these do not constitute formal feasibility studies or reserve estimates. Material mining and processing are contingent on regulatory approvals, operational performance, and market conditions. A subsequent Memorandum of Understanding was signed to complete final exploration reports required by regulators, with an estimated work program budget of BRL 500,000 to be shared equally between parties.
Leadership and Capital Raising
Corporate governance saw the appointment of Simon Stilwell as Non-Executive Chairman in March 2026, bringing over 30 years of capital markets and resources sector experience. Chris Eager, appointed CEO in August 2025, continues to steer operational and strategic initiatives.
Resouro’s FY26 financials reflect a net loss of CAD 4.04 million, narrowing from the prior year’s CAD 6.29 million loss, with cash reserves of CAD 1.09 million as at March 31, 2026. The company raised nearly CAD 3 million in a private placement in October 2025, underpinning its exploration programs and administrative costs. Management acknowledges ongoing financing needs to advance projects but remains confident in its capital-raising capabilities.
Risks and Next Steps
While the PEA and resource upgrades mark major milestones, Resouro faces typical exploration and development risks, including financing, permitting, and commodity price volatility. The company’s going concern status is supported by current capital but flagged as a material uncertainty due to future funding requirements.
Looking ahead, Resouro aims to refine its Tiros flowsheet, advance environmental studies, and pursue staged expansion opportunities beyond the initial 500,000 tpa operation. At Novo Mundo, the focus is on fulfilling regulatory conditions and operational readiness for mining and processing. Investors will be watching how these projects progress toward production and whether Resouro can secure the necessary capital to unlock their full potential.
Bottom Line?
Resouro’s robust PEA and resource growth at Tiros set a solid foundation, but advancing to production hinges on securing further financing and navigating regulatory hurdles.
Questions in the middle?
- How will Resouro finance the transition from exploration to development at Tiros amid ongoing losses?
- What impact will commodity price fluctuations have on the dual-revenue model’s economics?
- Can the Novo Mundo mining and processing agreements deliver near-term cash flow without capital diversion?