Australian company American Rare Earths now has even greater potential to be a big player in the US domestic rare earths supply chain after receiving the first assay results from drilling at the Southwest zone of its flagship La Paz project.
As it targets 742 – 928 million tonnes (MT) of rare earths mineralised rocks to add to the 170MT La Paz resource in Arizona, American Rare Earths (ASX:ARR) drilled 821 meters and collected 677 samples from nine holes from February to April 2022.
Assay results from the first 332 samples collected during this program demonstrate rock type associated with rare earth grades and high value magnetic rare earth oxides comprising 27% of total rare earth oxides (TREO). Two drill holes show extensive rare earth enrichment over lengths exceeding 50 meters. One intercept contains 501 parts per million (ppm) over 74.2m.
The results additionally reconfirm extremely low thorium and uranium levels. The low levels of these penalty elements, often found at other rare earths projects, plus the results metallurgical testwork completed in April this year provide further opportunities to reduce operating and capital costs at La Paz. This will in turn help underpin a Preliminary Economic Assessment (PEA) for La Paz, scheduled for the second half of 2022.
MD and CEO Chris Gibbs commented: “We are very excited by these results received from the drill program at the La Paz Southwest zone. These results confirm our exploration target potential and reinforce our strong view that the new mineralised zone has significant potential to expand our current JORC resource. An upgrade gives La Paz the potential to be one of the largest rare earths projects in North America.”
Stepping on the electric-powered accelerator
The enhanced grades and thickness of the mineralized zone have sparked an acceleration of exploration plans to expand and upgrade the current La Paz JORC 2021 resource, as the team looks forward to the remaining assays.
The exciting results from La Paz closely follow highly encouraging data from the maiden exploration drill program at ARR’s Halleck Creek project in Wyoming, which the company is also advancing.
Importantly, ARR’s sites contains high value magnet rare earth elements neodymium and praseodymium (NdPr), as well as dysprosium and terbium. These are essential elements of the permanent magnets used in electric vehicles, wind turbines and other green energy technology.
Collaborators in high places
The Aussie miner is also collaborating with top-tier US Government backed R&D projects. These have to goal to build a secure and environmentally sustainable rare earths supply chain so the US can cut its dependence on China for the critical minerals which are also key components of modern communications devices and defence hardware.
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.