FYI appoints contractor for rare earth feasibility study

Today our mineral processing Investment FYI Resources (ASX:FYI) appointed IHC Mining to undertake a feasibility study on its rare earth processing project in Northern Territory.

The “Minhub” project is a joint venture project with Arafura Rare Earths (~$540M capped) to develop a mineral sands and rare earths processing facility in NT.

The rare earths project will be a “midstream” project, with Arafura providing the feedstock and FYI providing the processing technology to enable production of products for downstream use.

The ultimate aim is to deliver a feasibility study that presents an economically viable project to the market and potential government funding sources.

Three months ago Australia announced its “critical mineral strategy” with the big winners being Australian based mineral processing companies - like FYI.

📰Read our take on the Australian Critical Mineral Strategy: Australia announces Critical Mineral Strategy as stocks defy tax loss selling

FYI has already started to take advantage of securing a $3M government grant in July (read our full take).

Today’s news was the first step towards delivering the feasibility study that will shed further light on the economics of the Minhub project.

Results are scheduled for March 2024.

If the results are positive, FYI expects to follow up this initial testwork with a Front End Engineering and Design - leading to a full scale feasibility study.

Here is how today’s news affects FYI’s progress against the key objectives set in our memo:

Objective #2: Complete Minhub acquisition and deliver rare earths feasibility study

Milestones

🔲→ 🔄 Technical work and offtake discussions with feedstock partners