American Rare Earths Eyes Potential For Larger Resource In Wyoming

American Rare Earths Ltd (ASX: ARR) has expanded the rare earth enrichment area at its Halleck Creek Rare Earth Element (REE) project in Wyoming, US.

Surface samples have returned values of up to 6,221 ppm total rare earth oxides (TREO) at the Cowboy State Mine area.

These results will allow the company to target higher-grade areas contiguous to the mining area within the recently published scoping study.

As of 31 December 2023, the company had a cash balance of A$6.29 million.

2.34 billion tonne resource

Importantly, the latest results complement the recently announced updated JORC resource of 2.34 billion tonnes.

The new mapping and sampling campaign provides better constraints on the geology of the Cowboy State mine area for future resource targeting and drill hole planning.

American Rare Earths Chief Executive Donald Swartz said: “We are encouraged by these results that continue to demonstrate upside potential to our recently announced scoping study.”

Highly enriched mineralisation

Swartz noted that these results are contiguous and complementary to the company’s recently released mine plans, of which the entirety was developed on state lands, which provides accelerated permitting.

These higher-grade target areas will allow for optimising mine planning and project economics as the company enters pre-feasibility level analysis.

Scoping Study Snapshot

Under a 3 Mtpa operating scenario, the Halleck scoping study estimates a net present value (NPV) of US$673.9 million at an 8% discount rate.

Additionally, the payback period is estimated at 2.9 years, with a total initial capex of US$456.1 million.

Halleck’s Life of mine (LOM) average cost is projected to be US$38.38 per kilogram of neodymium-praseodymium (NdPr) equivalent.

This compares favourably to the US$50 per kilogram cost reported by China Northern Rare Earths, the world’s largest integrated producer.

 

 

 

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