A scoping study for ACDC Metals’ Goschen Central project in Victoria has labelled the asset as a “generational-scale deposit”.
Located approximately 50km south-southwest of Swan Hill, Goschen Central has a mineral resource totalling 620 million tonnes (Mt) with an average grade of 2.2 per cent total heavy mineral sands (HMS).
The total HMS is anticipated to hold other rare earth elements (REE), including:
- 4 per cent rutile
- 11 per cent leucoxene
- 21 per cent ilmenite
- 22 per cent zircon
- three per cent monazite
- 45 per cent xenotime
- 7 per cent total rare earth oxides (TREO).
Goschen Central’s scoping study was based on a two-phase strategy.
The first phase concerned the project operating as a standalone heavy mineral sand plant, and the second phase looked at integrating Goschen Central with ACDC Metals’ REE processing plant.
“Phase 1 of the project designed by ACDC Metals entails the construction of a long life mine at Goschen Central, paired with a nearby mineral sand processing plant, that will provide two saleable products being a HMC rich in zircon and titania, and an REMC rich in monazite and xenotime, both suitable for international or domestic markets,” ACDC Metals said.
“Phase 2 entails the construction of a rare earth processing plant (REPP) to process a monazite concentrate via a proprietary caustic crack process to produce a MREO. Phase 2 will result in three saleable products from the Goschen Central project.
“The monazite mineral concentrate be transported to the REPP located in South Australia for hydrometallurgical processing. Phase 2 is scheduled to come online for year 3 of the combined operation.”
The scoping study found that Goschen Central has a 14-year mine life, with potential to expand through additional exploration, and a processing capacity of six million tonnes per annum.
Other findings from the study include:
- Goschen Central’s MREO containing a mix of heavy and light REE
- an overall TREO recovery of 85 per cent
- the Phase 1 heavy mineral sand operation will cost $310 million
- if phases 1 and 2 are implemented, Goschen Central will deliver annual earnings before interest, taxes, depreciation, and amortisation of approximately $101 million.
“The ACDC Metals team is very pleased with the results of the heavy mineral sand and rare earth element scoping study, a milestone that reflects a focused delivery since listing,” ACDC Metals chief executive officer Tom Davidson said.
“Goschen Central is a generational-scale deposit that can deliver strong cashflows, and still has plenty of upside remaining from further technical and exploration work.”
Goschen Central’s robust economics follow China adding seven REE – samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium – to its export control list.
China has long held the title as the world’s largest REE producer, but Goschen Central can help build a REE supply chain outside of the country.
“The vertical integration with the caustic crack process to value-add the contained REEs is a first step in the downstream processing that delivers both attractive returns and a strategically important domestic source of critical metals,” Davidson said.
Goschen Central’s scoping study has also cemented the project’s position in the Victorian Government’s critical minerals roadmap, which highlights the state’s vast mineral reserves and opportunities for growth.
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