McLaren Minerals' pre-feasibility study (PFS) for the McLaren Titanium Project in Western Australia (WA) forecasts total revenue generation of A$2.78bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) of A$899.7m over an initial mine life of 15.9 years.
The study highlights a payback period of 3.7 years, positioning the project as a significant contender in the global titanium market.
The PFS revealed an expanded mineral resource estimate (MRE) of 529 million tonnes (mt) at 4.5% heavy minerals, with 249mt at 4.7% heavy minerals classified as indicated.
A high-level conceptual pit, evaluated by IHC Mining, is estimated to contain 185.7mt at 5.85% heavy minerals, supporting the projected mine life.
Financial projections under conservative assumptions indicate a pre-tax net present value of A$252.2m and an internal rate of return of 26%.
Life-of-mine net revenue is estimated at A$2.6bn, with an average annual EBITDA of approximately A$56.5m.
The project is backed by a simplified engineering study utilising traditional mineral sands separation equipment, with bulk mining planned using a proven dry mining unit.
More than 60% of the total resource remains unmined, offering potential for further evaluation in the upcoming bankable feasibility study (BFS).
McLaren Minerals managing director Simon Finnis said: “Given we set out our PFS and development strategy in our very first presentation after acquiring McLaren, we are very pleased with the results, which have validated and derisked the project. Our updated MRE vastly exceeded our expectations and provides opportunities that will be studied during the Bankable Feasibility stage, which is due to commence shortly.
“These outcomes should provide shareholders with confidence that McLaren is not only viable but a very robust project, driven by our approach to minimising upfront capital while maximising returns. I look forward to progressing a more detailed study to build on this work and assess the opportunities presented by the resource upgrade.”
Located within the western margin of the Eucla Basin, the McLaren Titanium Project benefits from proximity to established infrastructure and export facilities. The project features two tenements, E69/2386 and E69/2388, spanning 197km² and 136km², respectively.
The development aligns with the increasing demand for titanium, driven by its applications in aerospace, automotive and other industrial sectors.
The company plans to advance the project towards a BFS, focusing on optimising mining and processing methods to enhance project economics and sustainability.
