American Rare Earths (ASX:ARR) on track for US success
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Aussie small cap American Rare Earths is limbering up for some big wins in the US with more outstanding drilling results alongside successful metallurgical testing and strengthening ties with Government backed R&D projects.
Its upbeat Quarterly Report outlines how American Rare Earths (ASX:ARR) will build off its achievements and comes less than a week after highly promising results from the maiden drill program at the Halleck Creek project.
Those assay results confirmed Halleck Creek’s potential as one of the biggest rare earths deposits in North America and indicated the existing exploration target for the Wyoming project is significantly underestimated.
Results from the final five of nine holes drilled at Halleck Creek in Q1 of 2022 demonstrated Total Rare Earth Oxides (TREO) mineralisation of up to 7,856ppm and high-value Magnet Rare Earth Oxides (MREO) comprising 25% of TREO.
The latest results also align with previous high grades returned from the 3428ha project, which has consistent TREO grades above 4,000ppm across hundreds of hectares.
American Rare Earths is now working to upgrade the current exploration target for the project and is looking forward to releasing these results once works are completed.
Drilling permits have been submitted in the very mining-friendly State of Wyoming and approvals are expected in the coming quarter, the company says.
With ARR keen to push ahead with the project, this next drill campaign will be conducted to define a JORC resource at Halleck Creek as soon as feasible.
MD and CEO Chris Gibbs said of the latest Halleck Creek results:
“These results further enhance our belief that the Halleck Creek Project could be one of the largest rare earth deposits in North America. The successful maiden drill campaign has also seen significantly higher grade at deeper levels than estimated in the Halleck Creek Exploration Target. Our focus in the near term is to upgrade the exploration target for this project, fast track our drilling efforts and establish a significant JORC resource as soon as reasonably practicable.”
Notably, the latest drill results additionally provided further confirmation of extremely low levels of uranium and thorium, which is highly unusual for a rare earths project. The negligible amount of these radioactive penalty elements at both Halleck Creek and the flagship La Paz project not only makes processing the ore more economical, but also gives American Rare Earths a strategic advantage in developing its US Government backed R&D project partnerships.
On the key metallurgy side of the business, ARR has engaged Wood Australia to oversee metallurgical test work to be conducted on the Halleck Creek core material over the next two quarters.
This follows the positive metallurgy test results from the La Paz ore in April, which demonstrated it responds well to conventional processing technology, thereby reducing operating and capital costs.
To further progress La Paz permitting applications are being prepared to allow an expanded and extensive drilling program in the new Southwest area of the Arizona project.
This follows drilling results released in June boosting confidence that there’s significant resource expansion potential at La Paz, where ARR has been targeting 742 – 928 million tonnes (MT) to add to the 170MT resource.
Leveraging its position at the right place and time, ARR is collaborating with US Government backed R&D on clean rare earths processing technology.
The world’s largest economy is escalating efforts to reduce dependence on China for these minerals critical to the clean energy transition and national security.
The company is well funded to deliver on its objectives with a cash position of A$6,325,111 at 30 June.
This article was developed in collaboration with American Rare Earths, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.