For every 7.48 million tonnes of contained rare earth oxides (TREO), there are currently 2.34 billion tonnes of material grading 3,196 parts per million (ppm) of total rare earth oxides (TREO), including neodymium (Nd) and praseodymium (Pr) oxides. At a grade of 3,295 ppm TREO, this comprises 1.42 billion tonnes in the measured and indicated category, a 128% increase over the 2023 estimate.
About 27% of the total resource is made up of magnet rare earth elements (Nd2O3, Pr6O11, Sm2O3, Dy2O3, and Tb4O7), with an average grade of 774 ppm MREO and an estimated 1.8 million tonnes of contained metal.
Rather than the 1,500 ppm cut-off grade used in the prior estimate, the revised estimate employs 1,000 ppm TREO. ARR is developing a JORC-compliant scoping study at Halleck Creek in collaboration with Stantec, an engineering consulting firm. Stantec concluded that a 1,000 ppm cut-off grade satisfies the requirements for declaring a mineral resource with reasonable prospects of future economic extraction.
The results of ARR’s September/October 2023 exploration programme, together with extra surface sampling and geological mapping at Halleck Creek, are included in the mineral resource update. The business has drilled 9,031 metres and 70 holes between April 2022 and October 2023.
The miner with an Australian listing claimed that the drilling not only increased the size of the Halleck Creek geological model but also yielded data that could be used to redefine the indicated resource extents at Red Mountain with high confidence and geostatistically define the measured resource extents at the Overton Mountain area.
CEO Donald Swartz made the following statement in response to the updated mineral resource estimate: “Normally, as infill drilling occurs, you’ll see the resource decrease; instead, we’re seeing the opposite, with only 25% of the project being drilled to this point.” He notes that the M+I category increased by 128% while resources increased by 64%, which is “illustrative of the enormous potential of the project.”
The combination of the low-cost mining design and the advancements in metallurgy have bolstered our confidence and enthusiasm over this exceptional deposit. We are excited to share the findings of the scoping study, which is almost finished, at 27% MREO, said Swartz.
In addition to the scoping study, which aims to assess the technical, mining, and financial concepts for Halleck Creek, a conventional open pit operation is planned. ARR must also get the required licences to conduct exploration on Wyoming state mineral leases in order to gather rocks for metallurgical testwork on a pilot scale and bulk material testing.
Subsequently, the business will draft and carry out a comprehensive baseline environmental plan and get a mining permission to extract minerals from state mineral leases. Currently, ARR holds state mineral leases and mining claims covering around 33 km2 in the Halleck Creek district.
Following the resource report, shares of American Rare Earths saw a 3.9% increase on the ASX, closing at A$0.14 per share. The market capitalization of the company is A$60.3 million.