McLaren Minerals (ASX: MML) has released a pre-feasibility study (PFS) confirming the economic and financial viability of its namesake titanium project in Western Australia.
The study outlined a long-life and globally competitive development set to generate $2.78 billion in total revenue and $899.7 million in EBITDA.
This is based on a high-level conceptual pit containing 185.7 million tonnes at 5.85% heavy minerals for an initial mine life of 15.9 years and a payback of 3.7 years.
The PFS forecast strong financial outcomes under conservative base case assumptions would deliver $252.2m in pre-tax net present value and a 26% pre-tax internal rate of return, with an average annual EBITDA of $56.5m at a margin of $129 per dry tonne of finished product.
Expanded Resource Estimate
McLaren is located within the western margin of the Eucla Basin in the southern part of WA and comprises two tenements adjacent to the Eyre Highway covering a total area of 333 square kilometres.
The project is primarily ilmenite with a non-magnetic by-product—a key feedstock for the rapidly expanding sulfate pigment and titanium slag sector.
The company confirmed an expanded mineral resource estimate (MRE) for the project of 529Mt grading 4.5% heavy minerals (indicated and inferred), including a substantial indicated portion totalling 249Mt at 4.7% heavy minerals.
The deposit has significant slime content, and a 2018 scoping study focused on the development of a tailings management program to ensure effective design for operation of the mine.
More than 60% of McLaren’s total resource remains unmined, providing valuation upside, flexibility, and further opportunities for the company to consider moving forward.
Project Validated and De-Risked
Managing director Simon Finnis said the PFS was an important step in the pre-development phase of McLaren, which the company acquired in 2024.
“We are very pleased with these results which have validated and derisked the project,” he said.
“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 a viable and very robust project, driven by our approach to minimising upfront capital while maximising returns.”
