American Rare Earths has ended a big year on a high note, with latest tests on Halleck Creek ore boosting confidence in the the deposit to become a key critical minerals project in the US.
The metallurgical tests from the Wyoming project back up American Rare Earths’ (ASX:ARR) outstanding mineralogy test results released earlier this month.
They also come hot on the heels of drilling data released last month indicating Halleck Creek is on track for a significant maiden JORC Resource in Q1 2023.
The science of metallurgy is critical to rare earths projects’ costs and supply chain opportunities, and the latest results could be a game changer as Halleck Creek takes shape as a potential world class asset.
The testing indicates the rare earth elements host material can be recovered using simple separation technology, which cuts energy use and costs while boosting the opportunity to lift capacity.
With a globally significant exploration target of 1.01-1.27 billion tonnes of rare earth mineralised rocks, the Wyoming deposit could be one of the largest rare earths projects in North America and has potential to be a major supplier of minerals essential for the clean energy transition.
Key among the latest results on the project’s ore include that its strength ranks in the lowest 14th percentile of more than 1,300 deposits globally. This means it can be liberated easily with minimal energy use.
Also, the ore requires less coarse grinding at the processing plant, further reducing energy expenditure while lifting the opportunity to increase capacity.
These factors will enable a simplified flow sheet that reflects lower capital costs for the project.
Metallurgy testing is continuing as ARR seeks to firm up the processing flow sheet and assess potential for further upgrading, with the work overseen by global experts Wood Australia.
At the same time ARR is progressing its large-scale La Paz rare earths project in Arizona, which has also returned highly encouraging metallurgy results.
And due to both projects’ almost negligible radioactive elements – a unique feature of rare earths deposits – the Aussie company is supporting a number of leading US research organisations in the race for a North American critical minerals supply chain.
These include the Department of Defense funded DARPA EMBER project, a Department of Energy Advanced Manufacturing Office funded project and a DOE Critical Materials Institute funded project, reflecting the US Government’s support of the American rare earths industry.
The company is looking ahead to a transformational 2023 and with a $17m in the bank, thanks in part to a $14m institutional placement this year, ARR has a long runway for growth.
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.