Australian Strategic Materials (ASX:ASM) said a scoping study evaluating a potential first-phase development of the Dubbo project in New South Wales focused on rare earth oxide production using a heap leach purification, separation, and refining flowsheet, forecast capital cost of AU$740 million, over AU$900 million lower than the estimate in its 2021 optimization feasibility study, according to a Friday Australian bourse filing.

The company forecasts operating C1 cash costs over a life of mine of 42 years of $47 per kilogram of neodymium-praseodymium, $506 per kilogram of terbium, and $147 per kilogram of dysprosium, the filing said.

The average production targets for years three to 15 of the project estimate a total of 1,242 tonnes per annum of rare earth oxides, including 1,157 tonnes per annum of neodymium-praseodymium oxide.

Australian Strategic Materials' shares rose over 10% in recent trading on Friday.