- 01US$2.31b NPV; US$299m capex; 145% IRR; 6m payback.
- 02Module 1: 2 Mt/yr concentrates.
- 03EU supply: ~6% NdPr, 24% zircon, 8% Ti.
Osmond Resources (ASX: OSM) has completed a scoping study for its Orión EU critical minerals project in southern Spain, outlining a nine-year underground development case with an estimated post-tax net present value of US$2.31 billion.
The preliminary study models initial capital expenditure of US$299 million including a 25% contingency, alongside an unlevered post-tax internal rate of return of 145%, average annual EBITDA of US$531m, and free cash flow payback of six months from first production.
Its initial Module 1 configuration is based on a processing plant producing 2 million tonnes of monazite, zircon, and mixed titanium mineral concentrates per annum from an owner-operated underground room and pillar mine.
Osmond estimates Module 1 could equate to about 6% of forecast 2030 European Union neodymium and praseodymium demand, about 24% of zirconium demand, and about 8% of titanium feedstock demand.
The study remains preliminary with an estimated accuracy of plus or minus 35%, contains no Ore Reserve and relies partly on Inferred mineral resources, meaning further drilling, evaluation, and more definitive studies are required before an economic development case can be confirmed.
Main Seam Production
Based on the high-grade Main Seam, Orión’s production target assumes an 80% mining extraction ratio, with the nine-year schedule comprising 10% Measured, 61% Indicated, and 29% Inferred mineral resources.
The first seven years are based on 74% Measured and Indicated resources and 26% Inferred resources, while Osmond considers the preliminary economic outcomes remain positive on the Measured and Indicated component alone.
The study forecasts processing of 15.8Mt over the initial mine life, with a life-of-mine C1 cash cost of negative US$12.67 per tonne of run-of-mine material after zircon and titanium by-product credits.
Osmond’s maiden mineral resource estimate totals 60Mt at 16.2% total heavy minerals, although the development case uses only the Main Seam and the broader MRE covers about 3.4% of the project tenure.
Completion of the study moves Osmond to a 76% beneficial interest in Orión, while the group estimates commercial-scale development would likely require about US$300m of pre-production funding and notes there is no certainty that this amount can be raised when required.
Targeting European Supply
The proposed underground operation would use conventional drill-and-blast room and pillar mining accessed by decline, with filtered tailings returned underground as backfill to reduce surface storage and support pillar recovery on retreat.
At full production, Module 1 is forecast to average about 42,300tpa of monazite concentrate, 68,000tpa of zircon concentrate, and 109,000tpa of titanium concentrate using gravity, magnetic, electrostatic, and flotation separation.
Osmond plans a 13-hole drilling campaign to increase resource confidence and scale, followed by an updated MRE and scoping study.
Pre-feasibility study test work is already underway targeting premium-grade zircon, a near-pure rutile stream and an upgraded monazite concentrate.
The group also intends to seek project support and strategic recognition through Andalusian, Spanish, and EU schemes, progress downstream studies, and pursue a secondary listing on the Bolsa de Madrid in the short term.
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