Perth-based mineral exploration company McLaren Minerals (ASX:MML) has released the results of its pre-feasibility study for the 100%-owned McLaren Titanium Project in southern Western Australia, confirming the project’s potential as a long-life, globally competitive titanium operation.
The PFS indicates the McLaren project could deliver $2.78 billion in total revenue and $899.7 million in EBITDA over an initial 15.9-year mine life, with a payback period of just 3.7 years.
The study incorporates an expanded mineral resource estimate of 529 million tonnes at 4.5% heavy minerals, including 249 million tonnes in the indicated category.
A conceptual pit of 185.7 million tonnes at 5.85% HM underpins the base-case mine plan.
Financial modelling, supported by independent market analysis, assumes an ilmenite concentrate price of US$250 per tonne and a non-magnetic concentrate price of US$366 per tonne, delivering a pre-tax NPV8 of $252.2 million and an IRR of 26%.
Average annual EBITDA is projected at $56.5 million, with an average margin of $129 per tonne of finished product.
The study highlights low technical risk, leveraging proven dry mining techniques and established mineral separation processes, with slimes and tailings management successfully de-risked through recent test work.
Over 60% of the resource remains unmined, offering further upside for the upcoming bankable feasibility study.
McLaren's Managing Director Simon Finnis described the outcomes as "validating and de-risking" the project, noting the robust resource base and strong economic fundamentals provide confidence in the project’s long-term viability.
At the time of reporting, McLaren Minerals' share price was $0.031.