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Resouro Strategic Metals has released an exciting preliminary economic assessment (PEA) for its Tiros rare earth and titanium project located in Brazil that suggests it has the potential for a USD 1 billion operation. This proposed starter project has been calculated to be able to generate a post-tax net present value (NPV) of USD 714.9 million (about CAD 1 billion) at an 8 per cent discount rate and will provide a very robust post-tax internal rate of return (IRR) of 44 per cent.
{alcircleadd}The company plans to begin development with a smaller, high-grade operation designed to reduce environmental and social impacts, accelerate the path to production, and lower project risks. Resouro CEO Christopher Eager stated that the project’s strong economics are supported by significant concentrations of total rare earth oxides (TREO) and titanium dioxide. He added that the phased development strategy would help secure future financing while creating a foundation for larger-scale expansion.
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Located in the state of Minas Gerais, the Tiros project is recognised as one of the world’s largest combined rare earth and titanium deposits. Based on a JORC-compliant resource estimate released in 2025, the project contains 1.4 billion tonnes of measured and indicated resources grading 12 per cent titanium dioxide (TiO₂) and 4,000 parts per million TREO.
The proposed starter operation would process 500,000 tonnes of material annually, producing approximately 90,000 tonnes of titanium dioxide concentrate and 3,636 tonnes of rare earth products each year over an initial 20-year mine life. Notably, this development would utilize less than 1 per cent of the project’s total resource base, leaving significant potential for future growth.
Following the announcement, Resouro’s shares rose 8.7 per cent on the Toronto market and gained an additional 3.2 per cent the next day. The project also benefits from near-surface mineralisation, low stripping requirements, conventional processing methods, and dual revenue streams from titanium dioxide concentrate and mixed rare earth carbonate products.
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