NeoTerra Group (LSE:TERA), the African critical minerals explorer, has updated the mineral resource estimate for the Fluorite Zone and Python orebodies at its Monte Muambe project in Mozambique to include heavy rare earth elements (HREE) for the first time.
The update shows the fluorspar operation could also yield a valuable HREE-rich concentrate by-product, potentially lifting projected project revenues by up to 40% over the mine's life.
NeoTerra estimates annual production of up to 650 tonnes of HREE-rich concentrate, containing around 80 tonnes of yttrium oxide, alongside the planned 50,000 tonnes a year of acid-grade fluorspar.
The estimate assumes around 65% recovery into a concentrate grading 70% total rare earth oxides (TREO), subject to further metallurgical optimisation.
Because the HREE concentrate would be recovered after most mining, crushing, grinding and flotation costs are already incurred for fluorspar production, NeoTerra expects only modest incremental capital and operating costs.
"These results continue to strengthen the business case for the Monte Muambe fluorspar operation and its importance as a near-term producer of strategically important minerals", said chief executive Cedric Simonet.
The project holds a 25-year mining licence and has received a $1.875 million grant from the US Trade and Development Agency to progress the rare earths component through prefeasibility.
Further metallurgical and engineering work is planned to refine the recovery assumptions underpinning the projected revenue uplift.
