The study estimated the net present value of the project at $A273 million at an 8% discount rate with a 20.6% internal rate of return pre-tax.

SCONI would use a high pressure acid leach processing plant to treat 200,000 tonnes of high-grade scandium laterite resource from the company's Lucknow deposit for production of 50-65 tonnes per annum with a 20-year mine life.

Total capital expenditure, including a 20% contingency, is expected to be $247 million and the estimated construction period is two years.

The project assumes an average long-term price of $US2000 per kilogram scandium oxide of greater than 99.9% purity.

Estimates also used a resource estimate of 9 million tonnes at 160 grams per tonne scandium using a 70gpt cut-off, including a high-grade resource of 5.7Mt grading 195gpt scandium using a 120gpt cut-off.

Managing director Andrew Gillies said the study showed the project had attractive economics with solid upside potential.

"Metallica remains focused on developing SCONI as the world's first major long-term reliable producer of scandia from a primary scandium deposit," he said.

Scandium is used in the solid oxide fuel cell market to produce green energy, a field that has seen significant increases in demand in recent years, though it is historically used to improve the strength of aluminium alloys in the aerospace sector and more specifically the Russian MiG fighter program.

Metallica signed a binding heads of agreement for scandia offtake for up to 690tpa with fuel cell manufacturer Bloom Energy.

It also entered into a non-binding memorandum of understanding with KBM Affilips, a Netherlands-based supplier of master alloys.

Phase 1 is designed to be a commercial stand-alone project, though it may lead to a larger phase 2 brownfields expansion at a later date, subject to economic conditions.

The company aims to have the project online in 2016 and does not foresee any significant technical or permitting hurdles to achieve that goal.

Metallica shares were up 21.9% to A19.5c.