Victory Metals (ASX:VTM) said the prefeasibility study for the North Stanmore heavy rare earth project in Western Australia forecast life-of-mine revenue of AU$6.5 billion, with initial process/infrastructure capital projected to be AU$155 million, according to a Tuesday Australian bourse filing.

The study projects a post-tax net present value of AU$1.21 billion at an 8% discount rate and a post-tax internal rate of return of 240%, with an initial project period of 20 years, which includes around 10 years of mining and processing as well as around 10.5 years of processing stockpiles.

The annual plant throughput is forecast at 2.4 million tonnes, and the total ore processed is expected to be 48.4 million tonnes. The all-in sustaining cost is projected to be AU$79.77 per wet tonne of ore.

The average total rare earth oxide production is forecast at 1,156 tonnes and 23,692 tonnes over the life of mine. The average neodymium-praseodymium oxide production is forecast at 219 tonnes and 4,495 tonnes over the life of mine.

The updated mineral resource estimate includes 53.3 million tonnes of high-grade domain at 1,024 parts-per-million (ppm), including a maiden 70.7 million tonnes measured category, measured and indicated resources totalling 154.8 million tonnes and 278.8 million tonnes at 483 ppm grade of total rare earth oxides. The study supports a maiden probable ore reserve of 47 million tonnes at greater than or equal to 300 ppm total rare earth oxide cutoff.

Its shares fell 1% in recent trading on Tuesday.