Mont Royal Resources (TSXV: MRZL) has put fresh numbers behind its Ashram rare earths and fluorspar project, and the updated preliminary economic assessment paints a picture of scale and longevity that the company is quick to attach to the broader push for non-Chinese supply.
The study pegs the project’s after tax net present value at C$2.03 billion using an 8% discount rate, with an internal rate of return of 22.0% and a payback period of 3.9 years from the start of production. Over a 30 year life of mine, Ashram is modelled to generate roughly $24.6 billion in revenue at an EBITDA margin of about 62.7%.
The operation is designed to turn out an average of 17,466 tonnes of saleable rare earth oxide each year, including roughly 4,035 tonnes of the neodymium-praseodymium magnet basket that drives much of the project’s value.
Nameplate mill throughput sits near 1.8 million tonnes annually, fed by a low strip open pit at a strip ratio of 0.4:1.
Initial capital is estimated at about $1.23 billion including a 30% contingency, with sustaining capital of roughly $299 million across the mine life and total life-of-mine capital of about $1.61 billion. The model also folds in some $342 million in refundable Clean Technology Manufacturing tax credits, and treats the access road as an operating tariff rather than upfront capital under an assumed shared-infrastructure arrangement.
As for operating costs, Mont Royal is positioning Ashram at the lower end of the curve. The PEA puts C1 cash costs at approximately C$17.99 per kilogram of saleable oxide and all-in sustaining costs at roughly C$18.58 per kilogram.
The project itself is a 100% owned development in Nunavik, Québec, and ranks among the larger monazite-dominant rare earth deposits in North America. The plan calls for on-site concentration followed by hydrometallurgical refining at Saguenay, producing a mixed rare earth carbonate aimed at Western and allied separation facilities.
Managing director Nicholas Holthouse framed the update as confirming a large scale, long life development, “The study has highlighted Ashram’s combination of scale, favourable mineralogy and competitive cost profile, supporting its potential to become a meaningful long-term supplier of rare earth products into Western supply chains.”
In terms of next steps a pre-feasibility study is planned, targeted to begin in the second half of 2026, alongside permitting and baseline work, metallurgical testing for a possible fluorspar recovery circuit, and evaluation of the higher-grade BD Zone for future inclusion.
Mont Royal Resources last traded at $0.225 on the TSX Venture.
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