Resouro Files NI 43-101 Report Confirming US$715M NPV for Tiros Project

• After-tax NPV of US$714.9 million and IRR of 44.2%
• 20-year mine life based on 500,000 tpa high-grade starter operation
• Capital costs estimated at US$250.8 million with annual OPEX of US$109.5 million
• Project targets less than 1% of 1.4 billion tonne Measured and Indicated Resource
• Favourable mining conditions and environmental design including dry-stack tailings

Technical Report Validates Strong Economics for Tiros Project

Resouro Strategic Metals (ASX:RAU) has taken a significant step forward by filing an independent NI 43-101 Technical Report for its Tiros Titanium and Rare Earths Project in Minas Gerais, Brazil. This detailed study confirms the Preliminary Economic Assessment (PEA) results announced in June 2026, highlighting an after-tax net present value (NPV) of US$714.9 million and an internal rate of return (IRR) of 44.2% based on an 8% discount rate.

The project envisages a 20-year mine life anchored by a capital-efficient, high-grade starter operation processing 500,000 tonnes per annum. Notably, this initial phase targets less than 1% of the Company’s extensive 1.4 billion tonne Measured and Indicated Mineral Resource, which boasts a robust grade of 12% titanium dioxide (TiO2) and 4,000 ppm total rare earth oxides (TREO). This approach aims to reduce upfront capital expenditure and execution risk while preserving substantial long-term growth potential.

Capital and Operating Cost Sensitivities

The PEA outlines a gross capital investment of US$250.8 million, split between US$191.2 million upfront and US$59.6 million sustaining capital over the mine life. Operating costs are estimated at US$109.5 million annually, equating to US$219 per tonne of run-of-mine material, with reagent costs comprising the lion’s share at 86.3% of operating expenses. This cost structure highlights a sensitivity to reagent pricing and supply chain factors, which could materially impact project economics.

The Technical Report also corrects a previously overstated acid reagent consumption figure, but this adjustment is offset by a revision to reagent pricing, leaving the project’s NPV unchanged. Qualified Persons have reviewed and endorsed these updates, underscoring the robustness of the economic model.

Mining and Processing Tailored to Established Jurisdiction

The project benefits from conventional free-digging open-pit mining with a low strip ratio, located in Minas Gerais, a mining-friendly jurisdiction with existing infrastructure and skilled labour. The processing flowsheet is comprehensive, involving beneficiation, calcination, magnetic and electrostatic separation, acid leaching, and precipitation to produce three product streams: coarse and fine TiO2 anatase concentrates and a mixed rare earth carbonate (MREC).

Steady-state production is projected at approximately 90,200 tonnes per year of TiO2 concentrates and 3,636 tonnes per annum of contained TREO in the MREC product. Environmental considerations include a dry-stack tailings design, reflecting a commitment to minimising ecological impact during operations.

Resource Confidence and Next Steps

The Technical Report’s Mineral Resource estimate, prepared under the JORC Code and NI 43-101 standards, classifies the resource into Measured, Indicated, and Inferred categories. The staged starter operation focuses on the high-grade domain of 103 million tonnes Measured and Indicated at 23% TiO2 and 9,100 ppm TREO, with an additional 33 million tonnes Inferred.

Resouro plans further infill drilling to upgrade resource confidence, alongside metallurgical testwork to optimise beneficiation and acid recycling. Permitting efforts are underway, with the project expected to secure necessary licenses through the Minas Gerais regulatory framework. These developments will be critical to advancing the project toward a pre-feasibility study and eventual production.

The staged approach and strong economics position Tiros as a potentially significant new source of titanium and rare earths, commodities increasingly sought after for high-tech and clean energy applications. However, the project remains at a preliminary stage, with the PEA incorporating Inferred Resources that carry geological uncertainty and conceptual pricing assumptions that require market validation.

Bottom Line?

While the Tiros Project’s economics appear compelling, the high reagent cost sensitivity and reliance on preliminary resource categories underscore the need for further drilling and testwork to solidify its development path.

Questions in the middle?

• How will reagent price volatility impact the project’s operating margins over time?
• What timelines and milestones can investors expect for the next phase of infill drilling and permitting?
• Will market acceptance and pricing of anatase TiO2 concentrates and mixed rare earth carbonates support the PEA assumptions?