Vital completes engineering study - on track to commence operations in 2021

20 July 2020

Highlights

  • Independent engineering study completed on the construction and operation of Vital’s high grade rare earth beneficiation facilities at Nechalacho
  • Capital Cost of Ore Sorting Plant calculated at $3.7m (including 10% contingency)
  • Ore sorter base and sub-structure scheduled to be installed on site in the Northern Summer
  • North T Pit Design completed (8,000t of contained REO) enabling the finalisation of the mining contract
  • Site preparation works to commence August 2020
  • Vital has commenced discussions to construct a Rare Earth Extraction Facility under a BOT contract (Build, Operate, Transfer)
  • Off-take negotiations are also progressing well in light of Canada-US critical minerals strategy
  • Vital’s 100% owned subsidiary, Cheetah Resources Ltd, has been selected for the Government of Canada’s Accelerated Growth Services Program (AGS), assisting access to potential financing assistance packages

Vital Metals Limited (ASX: VML) (“Vital” or the “Company”) is pleased to provide the following update on the progress of its 100% owned Nechalacho rare earth project in Yellowknife, NWT, Canada.

Following receipt of the amended Land Use Permit and Water License (as per 5th May 2020 announcement), Vital’s 100% owned subsidiary Cheetah Resources Ltd has worked to progress the project for a targeted commencement of operations from the North T deposit at Nechalacho in 2021. The following provides an update on progress relating to mining, sorting and cracking and leaching activities showing activities are proceeding in accordance with schedule (refer Investor Presentation 6th May 2020).

Vital’s Managing Director Geoff Atkins said:

“We have adopted a completely different strategy to traditional rare earth developers with a focus on low cost near term cashflow. The completion of detailed engineering for the ore sorting plant, with defined capital and operating costs confirms that Vital remains on track with this strategy, with production due to commence in 2021. We look forward to commencing production next year, making Vital the world’s next rare earth producer.”