ESG

"For less than the cost of a…fighter jet, [it] could be brought into production"

Texas Mineral Resources Corp (OTCQB: TMRC) says it is encouraged by the US government's steps to support domestic rare earth projects and is advancing its Round Top project.

Staff reporter
 Junior to advance Texas rare earth project as REE equities soar

Junior to advance Texas rare earth project as REE equities soar

Late Tuesday, the US Department of Commerce released a rare earth strategy outlining an action plan to secure supplies of critical minerals and reduce its vulnerability to supply disruptions.

China's dominance of the rare earth supply chain has put the issue in the spotlight in the midst of current trade tensions between the two countries and sent REE equities soaring last week.

Earlier yesterday, TMRC said its Round Top joint venture with USA Rare Earth positioned Texas as the potential centre of a revived US rare earth supply chain.

It is aiming to release an update next month on its 2013 preliminary economic assessment, with the new study to include an updated resource estimate adding lithium, hafnium, beryllium, scandium and gallium oxides, as well as sulphates of aluminum, iron, magnesium, potassium and sodium.

"With the range of critical rare earths present at Round Top and the addition of resources for six US-government-listed critical minerals, this single project could meet the Department of Defence's rare earth needs and offer a strategic reserve of key critical minerals as well," TMRC CEO and USA Rare Earth director of operations Dan Gorski said.

"For less than the cost of a single Navy F-35C fighter jet, the Round Top mine could be brought into production."

The 2013 study had outlined a 20-year mine with a capital cost of US$293 million, a pre-tax NPV (10% discount) of $1.47 billion and an IRR of 69%.

"Round Top, unlike other projects that have unfavourable economics and have previously struggled, has a low capex and opex as a result of the ability to heap-leach the rock, high REO recoveries and existing major infrastructure in place," Gorski said.

The Texas governor has requested the White House designate Round Top as a high priority infrastructure project, with TMRC saying final approval was pending.

TMRC reported a working capital deficit of about $2 million at the end of February.

US and Australian-based investment group USA Rare Earth is earning up to 80% of Round Top through a $10 million investment announced in November.

The privately-held company is expected to seek a Toronto listing later this year.

TMRC shares, which were trading below the 20c mark a year ago, hit a 52-week high of 42.45c on Friday.

They closed down 2.4% yesterday at 39.03c to capitalise it at $18.2 million.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.