Speaking at NWR Communications' Virtual Resources Conference, managing director Geoff Atkins said the team that backdoored Cheetah Resources into Vital last year, all ex-Lynas, had significant experience in developing rare earth projects,

 

That experience is the differentiator the junior hopes to use to develop the Nechalacho and Wigu Hill projects in Canada and Tanzania, supplying critical minerals into a rapidly changing market.

 

Around A$120 million has been spent on the Nechalacho project by other explorers, all of whom looked at bigger operations.

 

Vital secured the rights for the top 100m, and believes the unique nature of the North T deposit - a high-grade ore with a unique mineralisation that allows separation to be as simple as "separating red from white" - supports a fast-tracking of production by 2021.

 

First-pass metallurgy has generated concentrates with grades "as good as any you'll find in the world".

 

Combined with year-ground access, good infrastructure, a lack of expenses including process water or reagents, or a need to build tailings dams, means the metrics for North T are excellent, while the lack of waste has been helpful in getting local communities and first nations tribes on side.

 

Prior experience showed that not only was it impossible to underestimate the complexity of building a full separation plant, it can take the better part of a decade to see any real returns, Atkins said.

 

He said it was clear the world was heading into supply deficient over next few years, so Vital could establish a niche as supplier outside of China to existing facilities. 

 

Becoming a miner only also means a junior with a modest market capitalisation can secure funding that is not multiples of its balance sheet.

 

Vital expects to deliver capital cost estimates to the market once engineering studies are complete, and hopes to begin mining within 12 months.

 

"It's an aggressive timeframe, but we are confident," Atkins said.

 

Beyond Nechalacho is Wigu Hill.

 

"One of things critical, if to expand production, you need a second project coming online," he said.

 

The initial focus there is on the Twiga deposit, which appears to be similar in mineralisation to Nechalacho.

 

Vital shares were up 10% to A1.1c, valuing it at $23.6 million.