VML is targeting to be the largest independent supplier of clean mixed rare earth feedstock outside of China.
Vital owns 100% of the mineral rights of the Nechalacho Project Canada, above the 150 m elevation level, containing a mineral resource of high-grade light rare earths, very close to surface with excellent potential for low cost extraction.
Aspirational Targets: • Operations commencing 2021 • Maximum total construction cost to produce rare earth carbonateof A$20M. • Aim for the production of a minimum of 5,000t contained REO by 2025.
Key milestones to achieving commencement of production at Nechalacho in 2021 are as follows: • Site establishment and preparation works: September, October 2020 and January, February and March 2021. • Undertake infill drilling at Tardiff Zone • Finalisation of a mining contract: September 2020 to January 2021 • Mobilisation of mining fleet to site: February 2021 • Mining operation: April 2021 – October 2021 • Sorting operations commencing: May/June 2021 to October 2021 • Rare earth extraction facility construction commencing: February 2021 • Rare earth extraction facility operations commencing: August 2021.
Vital is continuing negotiations with several prospective off-take customers, specifically relating to: • Product specification; • Start-up feedstock requirements; • Ramp-up profile; andResource Inventory estimate. • Long term feedstock requirements. • Off-take negotiations are progressing well with a number of non-China buyers.
Vital’s senior management are world experts in developing rare earth projects.
• Vital Metals and Saskatchewan Research Council (SRC) have signed a binding Term Sheet to negotiate definitive agreements for the construction and operation of a Rare Earth Extraction Plant to produce a mixed rare earth carbonate product. • In August 2020, the Government of Saskatchewan and the Saskatchewan Research Council (SRC) announced a C$31 million funding package for the construction of Canada’s first Rare Earth Processing and Separating Facility in Saskatoon, Canada. • Vital’s Rare Earth Extraction Plant is planned to be located adjacent to SRC’s Separation Plant which will convert mixed rare earth carbonate to commercial grade separated rare earth oxides. • SRC’s facility will require mixed rare earth carbonate product for separation making Vital a likely customer. • Capital cost estimate of the Rare Earth Extraction Plant is A$5.25M. • Subject to execution of definitive agreements, processing operations are scheduled tocommence in Quarter 3, 2021.
VML Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
