American Rare Earths (ASX:ARR) has confirmed the economics, scalability, and strategic importance of the Halleck Creek Project in the US, after receiving results from a Scoping Study.
The study highlights Halleck Creek will have robust financials and long-term scalability, with a 3-million-tonne-per-year base case offering a net present value using a 10% forward discount rate (NPV10) of US$558 million ($875.47 million) and an internal rate of return (IRR) of 24%.
In addition, the project is expected to have a low-risk capex of US$456 million, with a 2.7-year payback period.
American Rare Earths, which has a market capitalisation of $149.39 million, adds that the project also has “billion-dollar potential” with a 6-million-tonne-per-year scenario delivering a NPV10 of US$1.171 billion and an IRR of 28.4%.
The latter scenario would require a capex of US$737 million, with a 1.8-year payback period.
CEO Chris Gibbs says the updated Scoping Study reinforces the project’s strong economic potential, strategic permitting advantage, and clear pathway to development.
“With a large-scale resource and favourable economics, we are uniquely positioned to help secure America’s rare earth supply and reduce dependence on foreign sources,” Gibbs says.
“With a scalable development pathway under evaluation, Halleck Creek has the potential to become a major supplier to US and allied markets. Future production scenarios could position American Rare Earths among the top rare earth producers outside China, reinforcing America’s supply chain security for decades to come.
“And we’re not just mining — we are developing a fully integrated US supply chain, refining and producing high-purity rare earth oxides for American manufacturers. Halleck Creek aligns with the growing push for Made-in-America critical minerals, securing a domestic supply for defence, aerospace, and high-tech manufacturing.”
The company is currently looking at ways to expedite development, including plans to begin phase one of a pilot plant for the beneficiation process.
A Prefeasibility Study for Halleck Creek is also scheduled to be released by Q4 2025.
The Halleck Creek Project is located in Wyoming, US and has a 2.63 billion tonne rare earth resource.
American Rare Earths is a mineral explorer and developer focused on resources needed for the energy transition. The company has projects in Wyoming and Arizona, US.
Write to Aaliyah Rogan at Mining.com.au
Images: American Rare Earths
