Mont Royal PEA Confirms Ashram as Large-Scale Rare Earth-Fluorspar Development

An updated preliminary economic analysis (PEA) of Mont Royal Resources’ (ASX: MRZ) Ashram rare earths and fluorspar project in Canada has confirmed it to be a large-scale, long-life, and strategically important North American asset.

Completed by Altris Engineering, the analysis incorporates revised mining, processing, and infrastructure assumptions, along with optimisation of transportation and logistics pathways, updated engineering and metallurgical inputs, and incorporation of a proposed hydrometallurgical processing plant in Québec.

The plant is designed to process approximately 69,500 tonnes per annum of flotation concentrate for 33,800tpa of mixed rare earth carbonate, while ensuring effective removal and management of thorium and other impurities.

The Ashram concentrator and hydromet facilities are expected to form a technically robust recovery flowsheet that supports the project’s production targets and provides a clear pathway from mine feed to a marketable rare earth product at PEA level.

Long-Term Supply Potential

The PEA results highlight the potential for Ashram to become a major long-term supplier of rare earth products into western and allied critical mineral supply chains.

Robust economics feature an average annual production of 17,466 tonnes of saleable rare earth oxide (REO) and 4,035t neodymium-praseodymium including 100t dysprosium-terbium and 230t yytrium based on an initial 30-year mine life supported by a resource base that remains capable of further expansion, with 93% of the resource schedule in the indicated category.

Key metrics include a $2.07 billion post-tax revenue (real), 22% post-tax internal rate of return (real), and a 3.9 year post-tax payback from start of production.

Planned initial capital expenditure sits at $1.25b (including 30% contingency) with access infrastructure costs assumed under a contracted or shared logistics model and reflected in operating expenditure.

Mont Royal expects Ashram will benefit from $347 million of refundable clean technology manufacturing investment tax credits incorporated into post-tax cash flows.

Large Rare Earth Deposit

Ashram is one of North America’s largest monazite-dominant rare earth deposits, offering exposure to a high-value magnet rare earth basket led by neodymium-praseodymium with additional dysprosium-terbium content and additional value upside through the inclusion of a dedicated fluorspar recovery circuit.

These materials are considered critical components in EVs, permanent magnets, wind turbines, robotics, and semiconductors, with applications in the aerospace technologies and defence sectors.

Broader district exploration upside exists across niobium, tantalum, and phosphate targets within the large intrusive Eldor carbonatite complex.

This includes the high-grade BD Zone and Mallard deposit, where Mont Royal recently reported grades of up to 39.8% contained fluorspar.

Major Step Forward

Managing director Nicholas Holthouse said the updated PEA marked a major step forward for the Ashram project demonstrating a clear pathway to advancement.

“This study has highlighted Ashram’s combination of scale, favourable mineralogy, and competitive cost profile, supporting its potential to become a meaningful long-term supplier of rare earth products into western supply chains,” he said.

“We see further upside beyond the base case including opportunities in fluorspar, resource expansion, and downstream partnerships and collaboration.”

He said the project would have a “meaningful and long-lived impact” on the development of rare earth industries and technologies within Canada, North America and Europe.

“Our focus now is continuing to work with First Nations and government agencies on developing infrastructures strategies and on progressing the project into pre-feasibility, advancing permitting and continuing engagement with strategic and offtake partners.”