NYSE- and TSX-listed Energy Fuels’ updated feasibility study (FS) for the Vara Mada project, in Madagascar, has confirmed the project’s strong economics, world-class quantities of high-quality rare earth, titanium and zircon mineral reserves and resources and an initially modelled 38-year life-of-mine (LoM).

The company said on January 8 that the LoM is expected to be significantly extended with planned refinements to the mine plan and additional drilling.

The feasibility study estimates a post-tax, pre-debt net present value (NPV) of $1.8-billion at a 10% discount rate, equivalent to $7.30 a share, based on current outstanding shares.

The study projects more than $500-million a year in operating profit from the project alone, not including additional expected downstream earnings from processing monazite at Energy Fuels’ White Mesa Mill in Utah, in the US, a process expected to be the subject of a separate feasibility study in the coming weeks.

“The feasibility study confirms what we’ve known since we acquired the project in 2024. Vara Mada is a generational, one-of-a-kind project that has the potential to positively alter the dynamics of global rare earth and critical mineral supply chains,” Energy Fuels CEO Mark Chalmers said.

Vara Mada is an advanced-stage heavy mineral sand (HMS) project containing significant low-cost ilmenite, zircon and monazite mineral reserves and resources.

Monazite concentrates produced from Vara Mada and other HMS projects are a source of both light and heavy rare earth elements (REEs), used in electric and hybrid vehicles, advanced manufacturing, consumer electronics, renewable energy and key defence technologies.

The company plans to import monazite into the US for processing into high-purity separated REE oxides for commercial and government customers in the US and allied nations.

“Over the past six years, Energy Fuels has pursued a unique and aggressive strategy that is now seeing success where other western rare earth companies have struggled. A significant proportion of China’s dominant rare earth industry begins with the importation of monazite concentrates produced as a low-cost byproduct of HMS mining.

“Energy Fuels is pursuing a similar strategy, because we believe it enjoys numerous competitive advantages over traditional pure-play rare earth approaches. This includes larger scales, lower costs and availability of superior concentrations of both light and heavy rare earth oxides,” Chalmers said.

The feasibility study consolidates and supersedes the 2021 definitive feasibility study and 2024 monazite-focused prefeasibility study. It includes an initially modelled production of 959 000 t/y of ilmenite, 66 000 t/y of zircon, 8 000 t/y of rutile and 24 000 t/y of monazite.

Seventy-three per cent of expected revenue is projected from external sales of ilmenite, zircon and rutile, with the remainder from internal sales of monazite concentrate for processing into REE oxides at the White Mesa Mill.

The feasibility study is based on the Ranobe deposit, which contains 904-million tonnes of proven and probable mineral reserves at an average heavy mineral grade of 6.1%, supporting the 38-year LoM. Measured and indicated mineral resources total 485-million tonnes at 3.3% heavy mineral grade, with an additional 1.2-billion tonnes of inferred mineral resources at 3.3% grade.

The study projects prefinal investment decision capital expenditure (capex) of $121-million, with Stage 1 post-final investment decision capex of $769-million to establish a 13-million tonnes a year processing operation and Stage 2 capex of $142-million to expand to 25-million tonnes a year.

Energy Fuels said Vara Mada will integrate with its US White Mesa Mill, where monazite can be processed into light and heavy REE oxides. The company plans a Phase 1 expansion to produce up to 1 000 t of neodymium-praseodymium oxide, 48 t of dysprosium, and 14 t of terbium oxides, potentially operational by the fourth quarter of 2026.

Phase 2 expansion, expected by the fourth quarter of 2028, would allow processing of up to 60 000 t of monazite concentrate into about 6 000 t of neodymium-praseodymium, 275 t of dysprosium, 80 t of terbium and other REE oxides.

“Energy Fuels is committed to operating Vara Mada to the highest global standards of health, safety, sustainability, and environmental protection, while advancing the economy of Madagascar, enhancing the quality of life of local communities, and serving as an important component of US and allied rare earth and critical mineral supply chains.

“We believe the project’s large scale, long mine life and . . . economics create a foundation for Energy Fuels to provide [a] competitive and responsible rare earth production in the western world,” Chalmers said.