en.Wedoany.com Reported - Astron (ASX: ATR) has released a revised economic study for Phase 2 of the Donald Mineral Sands Project, which shows an incremental pre-tax net present value (NPV8) of $1.5 billion and extends the combined project's mine life to 52 years; the overall project pre-tax NPV has increased to $2.3 billion, with an internal rate of return rising to 25.6%.
The Phase 2 study is based on updated ore reserves under the RL2002 license, totaling 435 million tonnes at a heavy mineral grade of 4.7%. Combined with Phase 1, the total ore reserves for the Donald Project increase to 728 million tonnes at a grade of 4.6% heavy minerals. Astron and its joint venture partner Energy Fuels plan to advance Phase 2 development as soon as possible after achieving commercial production in Phase 1.
Located in the Wimmera region of Victoria, the Donald Project is a joint venture between Astron and U.S. critical minerals company Energy Fuels, and is expected to become a significant producer of zircon, titanium minerals, as well as light magnetic rare earth elements (neodymium, praseodymium) and heavy rare earth elements (dysprosium, terbium). Phase 1 is expected to generate approximately $3.3 billion in cumulative after-tax free cash flow over its 40-year mine life, with a capital cost estimated at $450 million and a payback period of six years.
The Phase 2 study directly replicates the mining and processing operations model of Phase 1. Its incremental cost is estimated at $557 million, including a $70 million contingency. This phase plans to double the project's total run-of-mine ore throughput to 15 million tonnes, processing it into heavy mineral concentrate and rare earth concentrate. Due to the geological similarity between the Phase 2 mining area and Phase 1, many technical studies completed for Phase 1 can be directly reused, providing a foundation for efficient expansion.
Astron Managing Director Tiger Brown stated that the economic results of the Phase 2 study further highlight the immense potential of the Donald Project and its unique position as a long-life, scalable mining resource capable of serving two revenue streams, including the heavy rare earth market. Phase 1 is now ready, with a final investment decision expected after project financing negotiations, which are progressing well. Detailed planning for Phase 2 will begin after the start of Phase 1 construction, with the company targeting a final investment decision for Phase 2 by the end of 2030. Construction is planned to commence in the first quarter of 2031, with commissioning and commercial operations targeted for the third quarter of 2032.
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