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Big reserve boost at Australian rare earths project

With reserves substantially increased and a mine life now of more than 30 years, Arafura Resources claims it’s got the best pre-development NdPr project outside of China.
Big reserve boost at Australian rare earths project Big reserve boost at Australian rare earths project Big reserve boost at Australian rare earths project Big reserve boost at Australian rare earths project Big reserve boost at Australian rare earths project

Nolans in Australia's Northern Territory

"I challenge anyone to find a better fully permitted, fully costed NdPr-focused project outside China," Arafura's Gavin Lockyer said in a statement released to the ASX in relation to the company's 54% increase in reserves to 29.5 million tonnes at Nolans in the Northern Territory.

"It meets all the criteria to be a long term, sustainable supplier of critical minerals into clean energy technologies."

Based on feasibility work completed just over 12 months ago, Arafura needs to find about A$1.1 billion to develop Nolans.

Average annual earnings were put at around $400 million (on an EBITDA basis).

Arafura started the current quarter with about $23 million cash.

Shares in Arafura were up 6% to 6.7c in morning trade, capitalising the company at $71 million.

The stock was trading at around 5c 12 months ago, and has a 52-week high of 14c.