Brazil's Caldera Rare Earth Ore Resources Increase by 50%

According to the Mining Journal, Meteoric Resources announced a 50% increase in the resource volume of its Caldeira ion-adsorption rare earth ore in Brazil.

Based on a total rare earth oxide (TREO) grade of 0.1%, the ore resource volume within the license area of the Caldeira project in the northern deposits of Dona Maria and Cupim Vermelho Norte has increased to 1.1 billion mt, with an average TREO grade of 0.2413%, including a magnet rare earth oxide (MREO) grade of 0.0559%.

The proportion of MREO has risen to 23.2%. Currently, the praseodymium (oxide) content is 151,000 mt, neodymium is 438,000 mt, terbium is 4,800 mt, and dysprosium is 25,000 mt.

The updated measured and indicated ore resource volume is 589 million mt, with a TREO grade of 0.2655% and an MREO grade of 0.0613%. Among these, the measured ore resource volume is 37 million mt, with a TREO grade of 0.2982% and an MREO grade of 0.0715%.

Stuart Gale, the company's General Manager, stated that the northern area of the project has potential for near-term development, but before completing the pre-feasibility study, they hope to include the high-grade Barra do Pacu deposit within the resource volume.

The most recent discovery is the southern extension of the high-grade preliminary open-pit area of the Cupim Vermelho Norte deposit, which had previously undergone a scoping study.

Three Projects Progressing Simultaneously

Currently, three ASX-listed companies, including Meteoric Resources, Viridis Mining and Minerals, and Brazilian Critical Minerals (BCM), are competing in rare earth projects in Brazil.

Gale stated that Caldeira cannot be overlooked due to its large scale, ease of beneficiation, and ability to produce specific magnet rare earths.

Caldeira is also one of the highest-grade ion-adsorption rare earth ores in the world. According to research conducted so far, its magnet rare earth oxide recovery rate exceeds 50%.

A revised scoping study in October last year showed that even under conservative price estimates, the project's post-tax net present value exceeds $800 million.

With a TREO production cost of $6.74/kg, the project is expected to generate $4.25 billion in revenue over 25 years if it produces 193,600 mt annually. Capital expenditure is approximately $300 million.

Rare Earth Pioneer

Meteoric Resources is a pioneer in rare earth exploration and development in Brazil. The company began exploring the Caldeira rare earth ore in 2022 and has since become a rapidly growing and highly competitive enterprise.

The company aims to commence production by 2030, and the low-cost Caldeira project could make it one of the world's lowest-cost rare earth producers.

The company stated that Caldeira could reshape the current global rare earth production landscape.

BCM's Ema rare earth ore completed its scoping study in February this year. The report indicated that, due to in-situ extraction, its costs are "very low," with an investment of only $55 million and a post-tax net present value of $498 million.

Last month, Viridis also released a similar report, stating that its Colossus rare earth ore requires an investment of $373 million, with a net present value of $859 million. The deposit is unique, with an average TREO recovery rate of 57% and an MREO recovery rate of 76%.