La Paz continues to shape up as North America’s largest rare earths project
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The potential of American Rare Earths’ La Paz project in the US is not to be underestimated, with an increase in the resource placing it firmly in the lead to become one of North America’s largest rare earths projects.
American Rare Earths (ASX:ARR) has delivered a 33.1% increase in total resource tonnes to 170.6 million, equating to about 66.6 million kilograms of total rare earth elements (TREE).
The higher confidence indicated resource has jumped 117% to 35.2 million tonnes, while the grade is up 5.2% to 391 parts per million.
The scale and grade consistency support the economics of the project, ARR says.
The updated resource also contains 4.4 million kilograms of scandium oxide.
Scandium is also classified as a critical mineral, making it highly sought after. It’s added to aluminium products to make them lighter, stronger, more corrosion-resistant and heat-tolerant.
Scandium can sell for as much as $US3,400/kg, according to recent price reports by BAIINFO (Beijing).
The La Paz resource is pretty unique in that it has lower uranium and thorium grades than most other projects in the market.
According to ARR, the La Paz project has the lowest thorium levels of any US REE mine, which is a big advantage for an emerging rare earths producer.
The company also recently revealed a potentially big new rare earths discovery in Arizona, after drilling the Southwest area, about 4-7km southwest of the maiden La Paz resource – an area that has never been drilled before.
One diamond core hole ended in mineralised material below 75m.
“Seeing a 117% increase in indicated resource tonnage and a 5.2% increase in TREE grade demonstrates the value of our assets at La Paz,” managing director Keith Middleton said.
“Our upcoming exploration plans will allow us to grow the project and continue defining the resource while returning value to shareholders.”
ARR says there are opportunities to extend the maiden resource laterally and vertically where mineralisation is not closed off by drilling.
The positive news sent the company’s shares up 19% on Tuesday morning to an intra-day peak of 10c.
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.