Mont Royal tests a higher-value refining path for Ashram rare earths

Ashram Moves Beyond Mixed Carbonate Processing

Mont Royal Resources Limited (ASX:MRZ, TSXV:MRZL) is testing whether its Ashram rare earths project can move further up the processing chain, with a new study examining production of separated, high-purity rare earth oxides from mixed rare earth carbonates. The company has signed a Joint Study Agreement with Alta Resource Technologies to assess whether Alta’s engineered protein-based separation technology can be integrated with Ashram’s hydrometallurgical process.

The study is an evaluation, not a production commitment or joint venture. It will examine technical pathways and the potential for a commercial North American refining facility, with any future partnership dependent on the work’s outcome. Alta says its technology has previously achieved more than 99.5% purity and more than 90% yield on several feedstocks, but Mont Royal’s study will determine whether comparable results can be achieved with Ashram material. The initiative builds on the Alta separation study, which earlier coverage described as an effort to investigate protein-based processing for the project.

US Defence Network Adds Strategic Visibility

Mont Royal has also been accepted into the US Defense Industrial Base Consortium, a US Department of Defense-supported network linking defence agencies, prime contractors, research institutions and technology developers. Membership does not represent an offtake agreement, funding award or regulatory approval, but gives Ashram a place within a network focused on industrial capability and resilient supply chains.

The project was additionally selected for the inaugural Canada Investment Summit prospectus, which identifies Ashram as an opportunity for equity, joint venture, strategic investment, project finance and offtake partnerships. The prospectus highlights potential supplies of the magnet rare earths neodymium and praseodymium, alongside fluorspar and niobium by-products. That positioning follows the updated Ashram PEA, which outlined a 30-year operation and a C$2.03 billion post-tax NPV, although the filing reiterates that the study remains preliminary and carries an accuracy range of approximately plus or minus 50%.

Tax Credit Supports a Pre-Production Balance Sheet

Mont Royal received approximately C$2.22 million from Revenue Quebec during the quarter for eligible 2023/24 exploration and development activity. The Appendix 5B records C$2.205 million as a Canadian mining tax credit cash inflow. The company said it was finalising its 2024/25 calculations and tax return, which will include another application.

Cash and cash equivalents stood at A$5.029 million at 30 September, compared with A$4.391 million at the end of June. September-quarter cash outflows included A$839,000 from operating activities and A$715,000 on exploration and evaluation, while the company reported no development or production activity. On the Appendix 5B calculation, the A$5.029 million balance represented 3.24 quarters of funding based on the quarter’s A$1.554 million relevant outgoings. That is a snapshot based on one quarter’s spending and does not establish how long future permitting, study or development work will take to fund.

Permitting, Community Work and Exploration Remain Ahead

Mont Royal plans to continue Ashram trade-off and optimisation studies, begin permitting baseline work with a proposed start in the first half of 2027, test a potential fluorspar recovery circuit and progress a Critical Minerals Infrastructure Fund grant of C$2.6 million. The company says it is targeting commencement of a pre-feasibility study in the second half of calendar 2027, while also pursuing non-dilutive equity options with government agencies and industry groups.

Community engagement is becoming a more visible part of that timetable. Around 160 people attended the first Ashram public information meeting in Kuujjuaq, with approximately 60 in person and nearly 100 online. Mont Royal said it plans quarterly presence in Kuujjuaq and public meetings every six months, while the Naskapi Nation’s independent infrastructure consultation process continues.

At the smaller Northern Lights project, Mont Royal completed a helicopter-supported till sampling programme across the Chateaufort property, collecting 10 samples to assess gold-grain dispersion along strike from Benz Mining’s Eastmain gold project. Results were not available in the quarterly report. After quarter-end, non-executive director Jeremy Robinson resigned, with the board saying it is reviewing the composition of the board for additional rare earths, mining and development expertise.