American Rare Earths (ASX:ARR) has begun discussions with third parties regarding processing activities for its Halleck Creek Rare Earths Project in Wyoming, US.
Speaking to Mining.com.au, American Rare Earths Chief Executive Officer (CEO) Donald Swartz says discussions have begun ahead of the planned release of a Scoping Study for the project, which is slated for Q1 2024.
The CEO reports a Prefeasibility Study (PFS) will then follow in conjunction with piloting.
“We have started to have discussions with third parties about processing. However, our focus at the moment is on continually de-risking the project. We’re working towards releasing the Scoping Study in Q1 of calendar year 2024 and will then start on the Pre-Feasibility Study in parallel to piloting.”
These works follow the company, which has a $71.6 million market capitalisation, last week (7 December) reporting ‘exceptional’ results from a drilling program at Halleck Creek.
American Rare Earths said at the time the results confirmed consistent enriched rare earth element (REE) mineralisation from surface to 302m.
Swartz notes that these previous results confirm the potential for ‘significantly’ more resources at higher grades, with the company expecting to upgrade the existing Halleck Creek resource in early 2024.
“We just announced outstanding drilling and assay results, confirming that the deposit is actually much larger than the current resource model, while also being homogenous and cost-effective to mine.
Early next year, we’ll upgrade the existing JORC Resource. We have not only seen an increase in grade but are also extremely encouraged that the deposit remains open at depth.
The recent metallurgy results indicate the Halleck Creek Project is similar to a clay-hosted rare earth deposit when it comes to processing technology.”
“We just announced outstanding drilling and assay results, confirming that the deposit is actually much larger than the current resource model, while also being homogenous and cost-effective to mine”
Assays for a further 15 reverse circulation (RC) holes are pending.
Swartz also notes the company is looking to execute plans to capitalise on the ‘tremendous’ potential of its US assets in 2024, which he says will be a ‘transformational’ year for the company.
“As we round out 2023 we’re looking forward to a transformational year ahead. In 2024 we’ll be executing plans to capitalise on the tremendous potential of our US assets, especially at our flagship project Halleck Creek.
We’re currently pursuing authorisation from the State of Wyoming to commence test mining in 2024, along with further proving out the metallurgy, which will be an exciting step forward for the company.“
American Rare Earths is focused on developing environmentally friendly and cost-effective extraction and processing methods to meet the rapidly increasing demand for resources essential to the clean energy transition and US national security.
The company’s Halleck Creek Project currently holds a 1.43 billion tonne JORC resource.
As of 30 September 2023, American Rare Earths had $9.553 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: American Rare Earths