American Rare Earths Limited (ASX: ARR) has reported a 117% increase to the JORC 2012 indicated mineral resource for its La Paz Rare Earths project in Arizona, USA. The increase sees the total indicated resource rise to 35.2 million tonnes.
The result reinforces La Paz’s potential to become one of the largest rare earths projects in North America, with low uranium and thorium grades indicating that La Paz may be a more environmentally-friendly resource than comparable projects.
Total resource tonnage increased 33.1% to 170.6 million tonnes, with ~66.6 million kg TREE, increasing in grade by 5.2% to 391ppm, and ~80.0 million kg TREO.
The new MRE includes 4.4 million kg of scandium oxide, known for its resistance to heat and thermal shock, and used in a range of applications including electronic ceramics and glass composition.
The company reports that opportunities exist to extend the MRE laterally and vertically where mineralisation remains open.
Rare earths supply of national importance
The supply of rare earths, used in military-grade applications, is of strategic interest to the United States and its allies with China responsible for more than 60% of worldwide production.
Supply chain risks have recently been touched upon by the US Government, with President Biden’s Executive Order on America’s supply chains from February 24 2021 stating: “The Secretary of Defense (as the National Defense Stockpile Manager), in consultation with the heads of appropriate agencies, shall submit a report identifying risks in the supply chain for critical minerals and other identified strategic materials, including rare earth elements (as determined by the Secretary of Defense), and policy recommendations to address these risks.”
“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”
Management comments
American Rare Earths Managing Director Keith Middleton said: “ARR is extremely pleased with the results of the La Paz Resource Update. 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. Our upcoming exploration plans will allow us to grow the project and continue defining the resource while returning value to shareholders.”
Images: American Rare Earths Limited
