Sunrise Energy Metals (ASX:SRL) said the feasibility study for its Syerston project in New South Wales resulted in around $120 million development cost to produce 60 tonnes-per-annum of scandium oxide with life-of-mine cash operating costs of $534 per kilogram, according to a Tuesday Australian bourse filing.

The project is forecast to process 64,000 tonnes of ore per year to produce 60 tonnes of over 99.9% purity scandium oxide annually. It is expected to have a 32-year mine life.

Mining will use conventional open pit methods with excavators and trucks, while the processing plant will use hydrometallurgical leaching to extract scandium from ore, followed by refining to produce high-purity scandium oxide.

Upon a potential final investment decision by its board, site works are expected to begin in the second half of the current year and commissioning is expected to be completed in the first half of 2028 for the initial 60 tonnes-per-annum capacity.

Its shares jumped over 18% in recent trading on Tuesday.