en.Wedoany.com Reported - Resouro Strategic Metals (TSX-V:RSM) has completed a preliminary economic assessment (PEA) for the start-up phase of its flagship project, the Tiros rare earth and titanium project in Brazil, indicating an operational potential of up to $1 billion.

The PEA, prepared by the Norda Stelo team in accordance with NI 43-101 disclosure standards, calculates an after-tax net present value (NPV8) of $714.9 million and an after-tax internal rate of return (IRR) of 44.2%. The Tiros project is located in Minas Gerais state, and the deposit is one of the world's largest JORC-compliant rare earth and titanium combined deposits, with high-confidence measured and indicated resource categories totaling 1.4 billion tonnes.

Last year, measured and indicated resources increased by nearly 37% to 1.4 billion tonnes, grading 12% titanium dioxide (TiO₂) and 4,000 ppm total rare earth oxides (TREO). Of this, measured resources amount to 367 million tonnes and indicated resources to 1 billion tonnes, both grading 12% TiO₂. The company stated at the time that the resource update was a significant milestone, establishing the Tiros project as one of the world's largest and most important titanium dioxide and rare earth resources.

The study envisions a 500,000-tonne-per-year operation, producing approximately 90,000 tonnes of titanium dioxide (TiO₂) concentrate and 3,636 tonnes of total rare earth oxide products annually over an initial 20-year mine life. The proposed start-up phase targets less than 1% of the project's 1.4 billion tonnes of measured and indicated resources, leaving room for future expansion and long-term growth. The project benefits from a low stripping ratio, near-surface mineralization, conventional processing, and dual revenue streams from titanium dioxide concentrate and mixed rare earth carbonate products. The overall recovery rate for titanium oxide is 68.7%, and the recovery rate for rare earth elements into mixed rare earth carbonate (MREC) is 67%.

Resouro CEO Christopher Eager stated in a press release that the project's robust economics are based on high-grade total rare earth oxides and titanium oxide. The company believes that starting with a small, high-grade operation can minimize social and environmental impacts, shorten the time to production, and significantly reduce project risk. The phased approach aims to support future financing and provide a pathway to larger-scale development.

Resouro's shares closed up 8.7% in Toronto, giving the company a market capitalization of C$34 million (US$24.3 million).

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