American Rare Earths Ltd (ASX:ARR) is sitting on a 1.43-billion-tonnes rare earths resource at its Halleck Creek asset in Wyoming, making it one of the largest rare earth projects in the United States.
A maiden resource estimate has reported 1.43 billion tonnes with a 3,309 parts per million (ppm) total rare earth oxide (TREO) grade and with 4.73 million tonnes of the resource comprising in-situ contained TREO.
Just under a quarter of the 1.43-billion-tonne resource hosts highly valuable magnetic rare earths, with the average neodymium praseodymium grade clocking in at 734 ppm.
Estimated rare earth resources at Halleck Creek.
There has been a strong response from investors who have sent shares as much as 21.43% higher in morning trade on the ASX to A$0.255.
ARR is confident there’s more rare earth upside at Halleck Creek: 75% of the district is yet to be drill tested, while the deposit remains open at depth.
Rare earth mineralisation runs from the surface to at least 150 metres deep, while consistent grades make it an ideal target for large-scale, low-cost open pit mining.
Staking place in domestic supply chain
American Rare Earths CEO and MD Chris Gibbs said the resource confirmed Halleck Creek’s strategic significance, especially as an asset that could help the world’s largest economy decrease its reliance on imported rare earths.
“Global magnetic rare earth oxide consumption is forecast to more than treble by 2035,” Gibbs explained.
“The US Government has made no secret that it is seeking to onshore supply of all critical materials for supply chain and national security purposes.
“There is only one producing rare earth mine within the USA; the Mountain Pass mine in California.
“The USA needs a number of these mines to secure onshore supply of rare earths and we believe Halleck Creek is part of the future solution.”
More to come
Under the supervision of Wood PLC, one of the world’s leading consulting and engineering companies, metallurgical-test work is ongoing to optimise the Halleck Creek process flow sheet.
This includes bulk WHIMS and floatation test-work — activities that are well advanced — to assess the likely constituents of an upgraded concentrate product.
The metallurgical program will underpin a scoping study, scheduled for release later this year. Additional exploration and development work also continues at Halleck Creek.
Gibbs continued: “This is an excellent outcome from our drilling program and a key step towards creating significant shareholder value. We are committed to growing our rare earth resources and developing our operations in the US.
“The Halleck Creek project is shaping up to be a strategic asset for the US to supply rare earths for future generations,” he concluded.