Meteoric Resources (ASX:MEI) has released the definitive feasibility study (DFS) for its Caldeira rare earth ionic clay project in Brazil, bolstering confidence in the project's development pathway and advancing the company toward a final investment decision.

The DFS builds on data from more than 55,500 samples assayed across 90,000 metres of drilling, alongside three years of metallurgical bench and pilot testwork. Pilot plant production has been ongoing for the past seven months, and engineering studies were completed by Ausenco. Mineral resource updates have further confirmed Caldeira as one of the largest rare earth ionic clay reserves and resources known outside of China. Ionic clay deposits are particularly significant because they can be processed using simpler, lower-cost leaching methods compared to hard rock operations, a characteristic that has underpinned China's dominance in heavy rare earth supply from similar geologies in the country's southern provinces.

Managing Director and CEO Stuart Gale said that since acquiring Caldeira in March 2023, Meteoric has carried out an extensive programme spanning exploration, resource development drilling, resource estimation, metallurgical characterisation of ore, process design testwork, materials handling studies, mine scheduling and design, and other related technical studies.

"The Caldeira project DFS is a comprehensive assessment of the technical, commercial and financial fundamentals required to support a formal investment decision. The DFS confirms Caldeira as a low capital intensive, low operating cost, long life asset containing abundant light and heavy magnetic rare earth elements essential to permanent magnet production," Mr Gale said.

"This is the culmination of over three years of detailed technical analysis and diligence necessary to validate a project of this scale and importance. Our analysis has been critical to reducing the inherent risk that comes with developing projects of this nature and we have built internal capability to continue to mitigate future risk and generate long term value."

Mr Gale said the DFS demonstrates the project's capacity to generate strong economic returns while maintaining resilience across a range of market conditions.

"Caldeira is positioned to become a significant long-term supplier of rare earth materials, into global markets, at a time when demand for rare earth materials continues to be driven by electrification, renewable energy, advanced manufacturing and defence applications," he said.

The project's advancement comes as governments in the United States, European Union, Japan and Australia have accelerated efforts to build non-Chinese rare earth supply chains through funding programs, tax incentives, and offtake agreements, reflecting the strategic priority of securing critical minerals for electric vehicle motors, wind turbines, and defence systems.

"The combination of scale, product quality, cost competitiveness and strategic importance provides a robust foundation and an attractive solution for downstream participants seeking to secure, long-term supply."

Mr Gale added that the study also demonstrates the project's capability of delivering strategic value to governments and industry, and provides confidence that the project can support a range of structured project financing solutions.

Mr Gale told shareholders that Meteoric continues discussions with its strategic partners, government credit agencies and commercial financiers.

"Meteoric clearly has a great resource and an equally great team of people who will deliver on the project's potential. I am very proud of our team, their expertise and understanding which will deliver our ambitions for the Caldeira project," he said.

MEI shares were up 2.78% to 18.5 cents, with a market capitalisation of $523.1 million.

Source: The Market Online Australia