IperionX Titan Project Scoping Study
A LEADING, SUSTAINABLE U.S. CRITICAL MINERAL PROJECT
IperionX Limited (NASDAQ: IPX, ASX: IPX) (IperionX or Company) is pleased to announce the positive results of the Scoping Study (Scoping Study or Study) on the Company’s Titan Project (the Project) located in west Tennessee, U.S. The Scoping Study results demonstrate the Project’s potential to be a sustainable, low cost and globally significant North American producer of titanium, rare earths and other critical minerals needed for a low carbon future.
IperionX has two businesses – our critical minerals business at the Titan Project, which is the subject of this Scoping Study – and our titanium metals business, where we are currently producing titanium metal powders and prototype parts using our patented titanium manufacturing technologies that have the potential to significantly reduce both the cost and carbon emissions of titanium production relative to what is commercially available today – a separate economic evaluation is planned to be released for project development activities associated with our titanium metals business.
Scoping Study Parameters - Cautionary Statements
The Scoping Study referred to in this announcement has been undertaken to determine the potential viability of the Project comprising a heavy mineral sand mine and wet concentrator plant and mineral separation plant constructed in Tennessee, U.S. and to reach a decision to proceed with more definitive studies. The Study for the Project has been prepared to an intended accuracy level of ±35%. The results should not be considered a profit forecast or production forecast.
The Scoping Study is a preliminary technical and economic study of the potential viability of the Project. In accordance with the ASX Listing Rules, the Company advises it is based on low-level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves. Further evaluation work including infill drilling and appropriate studies are required before IperionX will be able to estimate any Ore Reserves or to provide any assurance of an economic development case.
Approximately 57% of the total production targets are in the Indicated Mineral Resource category with 43% in the Inferred Mineral Resource category. 100% of the production target in the first 14 years is in the Indicated Mineral Resource category. The Company has concluded that it has reasonable grounds for disclosing a production target which includes an amount of Inferred Mineral Resource. However, there is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work (including infill drilling) on the IperionX deposit will result in the determination of additional Indicated Mineral Resources or that the production target itself will be realized.
The Scoping Study is based on the material assumptions outlined elsewhere in this announcement. These include assumptions about the availability of funding. While IperionX considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.
To achieve the range outcomes indicated in the Scoping Study, additional funding will likely be required. Investors should note that there is no certainty that IperionX will be able to raise funding when needed. It is also possible that such funding may only be available on terms that dilute or otherwise affect the value of IperionX’s existing shares. It is also possible that IperionX could pursue other ‘value realization’ strategies such as sale, partial sale, or joint venture of the Project. If it does, this could materially reduce IperionX’s proportionate ownership of the Project.
The Company has concluded it has a reasonable basis for providing the forward-looking statements included in this announcement and believes that it has a reasonable basis to expect it will be able to fund the development of the Project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.
The entire press release can be found under the following link: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02536681-6A1097645?access_token=83ff96335c2d45a094df02a206a39ff4
SCOPING STUDY HIGHLIGHTS
Largest potential source of U.S. titanium and rare earths minerals, including heavy rare earths
- Scoping Study confirms the potential for the Project to be the largest U.S. producer of titanium and the rare earth minerals, monazite and xenotime, which includes both light and heavy rare earths.
- In-situ metal content of titanium and rare earths over the life of the Project represents potential production of ~60,500 Boeing 787s and ~24,000,000 electric vehicles.
- Potential to satisfy 100% of the U.S. Department of Defense needs for titanium and the heavy rare earths required for national security.
- Opportunity for a rapid and low capex entry to the U.S. rare earth supply chain, utilizing Energy Fuels’ existing White Mesa mill in Utah.
Potential for significant cashflow generation including average annual EBITDA of US$117 million
- Potential to develop a domestic source of critical minerals in the U.S. with significant cashflow generation underpinned by low costs.
- Compares favorably to global projects and is located in a leading jurisdiction significantly closer to a large number of end user facilities.
- Importantly, the Scoping Study do not yet consider the potential upside associated with integration of the Titan Project (minerals business) and the Company’s breakthrough titanium metal technologies (metals business).
Globally significant U.S. critical mineral resource with massive potential upside in the region
- 100% interest in over 11,000 acres of titanium, rare earth minerals and zircon rich mineral sands properties in Tennessee, U.S.
- Production target of 243 million tons of mineralized material over a life of mine of 25 years covers less than 4,500 acres of the current land position controlled by the Company.
- Significant potential to grow production and Project life in the future.
Infrastructure, location and decarbonized supply chain advantage to major target markets and end users
- Significant cost advantages due to the location and proximity to existing low cost, world-class infrastructure.
- Major logistical advantage over many other critical minerals imported into the U.S. provides the potential for a further cost advantage and a lower carbon intensity supply chain.
Sustainable and community focused development
- Actively taking a “sustainable first” approach to all areas of development with a focus on zero carbon power, sustainable rehabilitation practices and community engagement.
- Building trust, broadening support, improving knowledge and promoting community participation and engagement in the development of the Titan Project.
Rapidly progressing to be construction ready in 2023
- Mineral demonstration facility at Titan Project being completed to facilitate feasibility test work, customer offtake discussions, downstream R&D and community engagement.
- Feasibility study metallurgical test work already underway after successful completion of pre-feasibility level test work in early 2022.
- Optimization for mine planning, processing and permitting pathway underway to facilitate a 2023 construction ready timeline.
Key Scoping Study Metrics (US$)
All values in the Scoping Study are measured in metric units and are displayed in US$ unless specified.
Anastasios (Taso) Arima, CEO and Managing Director said: “The delivery of the maiden Scoping Study at the Titan Project is a significant milestone for IperionX and we are delighted to put Tennessee on the map as a major source of critical minerals for the U.S.
The Scoping Study confirms the Titan Project as a globally significant development of titanium and rare earths minerals, including the heavy rare earths that are essential for electric motors and defense applications, located in a leading jurisdiction and in close proximity to major potential customers. Importantly, the Scoping Study does not yet consider the potential upside associated with integration of the minerals operation with the Company’s breakthrough titanium metal technologies.
The Titan Project economics showcase the potential for IperionX to generate significant cashflows from mineral operations over a 25 year operational life, including low-costs, an average annual EBITDA of US$117 million, with an NPV of US$692 million and IRR of 40% highlight the outstanding value associated with the Project.
We are now rapidly progressing to be construction ready in 2023, with feasibility study level activities already underway and optimization of mine planning, processing and permitting pathways to commence shortly.
We are looking forward to working with the community in west Tennessee to develop a generational critical mineral asset for the U.S., as well as advancing engagement with our other stakeholders including offtake partners.”
The entire press release can be found under the following link: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02536681-6A1097645?access_token=83ff96335c2d45a094df02a206a39ff4
This announcement has been authorized for release by the Board.
For further information and enquiries please contact:
+1 704 461 8000
Forward Looking Statements
Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, and achievements to differ materially from any future results, performance, or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation, as well as other uncertainties and risks set out in filings made by the Company from time to time with the Australian Securities Exchange and the U.S. Securities and Exchange Commission (“SEC”).
Forward looking statements are based on the Company and its management’s assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.
There may be other factors that could cause actual results, performance, achievements, or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Except as required by applicable law or stock exchange listing rules, the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
Competent Persons Statements
The information in this announcement that relates to Exploration Results and Mineral Resources is based on, and fairly represents, information compiled and/or reviewed by Mr. Adam Karst, P.G., a Competent Person who is a Registered Member of the Society of Mining, Metallurgy and Exploration (SME) which is a Recognized Overseas Professional Organization (ROPO) as well as a Professional Geologist in the state of Tennessee. Mr. Karst is a consultant to IperionX Limited. Mr. Karst has sufficient experience which is relevant to the style and type of mineralization present at the Titan Project area and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the 2012 JORC Code). Mr. Karst consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
The information in this announcement that relates to Process Design is based on, and fairly represents, information compiled and/or reviewed by Mr. Eugene Dardengo, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy. Mr. Dardengo is a consultant to Primero Group Limited, which wholly owns Primero Group Americas Inc. Mr. Dardengo has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr. Dardengo consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Mine Design is based on, and fairly represents, information compiled and/or reviewed by Mr. Stephen Miller, a Competent Person who is a Fellow of the Australian Institute of Mining and Metallurgy. Mr. Miller is a consultant to Primero Group Limited, which wholly owns Primero Group Americas Inc. Mr. Miller has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr. Miller consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Cost Estimates and Financial Analysis is based on, and fairly represents, information compiled or reviewed by Mr. Stephane Normandin, a Competent Person who is a Registered Member of Ordres des Ingenieurs du Quebec, a Recognized Overseas Professional Organization (ROPO). Mr. Normandin was a full time employee of Primero Group Americas Inc. Mr. Normandin has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr. Normandin consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
