Stockhead: Resources Top 4: ASX juniors pump on rare earths and copper

Pic: Getty Images.

Pic: Getty Images.

American Rare Earths receives US$10.7m grant for 2.3bn-tonne REE mine in Wyoming

American Rare Earths (ASX:ARR)

A $10.7m exploration grant from the State of Wyoming has been approved for American Rare Earths’ Cowboy State Mine REE project.

The Cowboy State Mine is on the lips of many North American investors and OEMs, as it’s purported to be one of the largest REE deposits on the planet, weighing in at 2.34 billion tonnes at 3196ppm TREO.

Funds are planned to be used for further exploration work, a pilot processing plant, feasibility studies and economic assessments.

Confidence in the deposit is high, especially considering the $123m market-capped explorer recently rejected a US$400m buyout from a group of investors based in California.

A recent scoping study highlighted a base case 3Mtpa processing operation, yet so far – and this is in the early doors testing phase mind you – ore from the deposit has been successfully preconcentrated to just 3.5% TREO at a 12:1 upgrade ratio.

It’s a bigger deposit, yet lower than Lynas’ Mt Weld, which is mined at an 8.3% TREO.

Interestingly, ARR is a major shareholder in fellow ASX REE explorer Godolphin Resources (ASX:GRL) , which is continuing exploration at the Narraburra project in NSW.

Shares in the explorer jumped up almost 15% on the news in early trade today, yet have settled 5% higher than open at 25.5c per share at the time of writing.




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