Name of the Project
Dubbo zirconium/niobium/hafnium and rare earths project.

Location
The project is located 25 km south of Dubbo, in central-western New South Wales, Australia.

Project Owner/s
Australian Strategic Materials (ASM) demerged from Alkane Resources in 2020.

Project Description
The Dubbo project is a large inground polymetallic resource of zirconium, hafnium, niobium, tantalum, yttrium and rare-earth elements. It has an 18.9-million-tonne mineral ore reserve and a 75.18-million-tonne mineral ore resource.

According to ASM, the project will, at full capacity, be capable of processing one-million tonnes a year of crushed ore through sulphuric acid leach and solvent extraction recovery.

Mining will be undertaken through an openpit, then transported to the processing facility.

Sulphuric acid used for leaching will be produced on site using a sulphur-burning acid plant that also generates electricity and steam for the process plant.

A small amount of waste rock will be extracted and transported to a small waste rock emplacement to the south-west of the openpit. The liquid and solid residues from the processing plant will be transported and stored in liquid residue storage facilities, solid residue storage facilities and salt encapsulation cells.

The project currently has a mine life of 20 years.

Potential Job Creation
About 450 jobs are expected to be created during construction and 200 during operations.

Net Present Value/Internal Rate of Return
In the base case, the project has an estimated pretax net present value (NPV), at an 8% discount rate, of A$1.24-billion and an estimated internal rate of return (IRR) of 17.5%.

In the staged build, the project has an NPV, at an 8% discount rate, of A$909-million and an IRR of 16.1%.

Capital Expenditure
The project will cost about A$1.3-billion in the base case scenario. In the staged build, Stage 1 is estimated at A$808-million and Stage 2 A$692-million.

Planned Start/End Date
Not stated.

Latest Developments
ASM has unveiled plans for a A$106-million capital raise to fund key workstreams for its Korean metals plant and front-end engineering and design (FEED) studies for its Dubbo critical minerals project, in New South Wales.

The shares will be placed under ASM’s existing placement capacity, with the offer price representing a 4% discount to the company’s last closing price, and a 10% discount to its five-day volume weighted average share price.

The shares issued under the placement will be settled on April 1.

In addition to the share placement, ASM will also undertake a 1:14 pro rata, nonrenounceable entitlement offer, at A$4.80 a share, to raise an additional A$41-million before costs.

The entitlement offer will open on April 7 and will close on April 16, unless extended.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Alkane Resources, tel +61 8 9227 5677 or email mail@alkane.com.au