American Rare Earths (ASX: ARR | ADRs - OTCQX: AMRRY | Common
Shares - OTCQB: ARRNF)
(ARR or the (Company) is
pleased to announce the completion of the detailed “Technical
Report of Exploration and Updated Resource Estimates of the Halleck
Creek Rare Earths Project” compiled by ARR, which includes updated
Resource estimates under the 2012 JORC code. Results of the
Sept/Oct 2023 exploration program and additional surface sampling
and geological mapping at Halleck Creek provided data to increase
in-situ resource estimates to 2.34 billion tonnes at a grade of
3,196 ppm TREO. This is an increase of 64% in in-situ tonnes
compared to the Sept/Oct 2023 maiden resource estimate for Halleck
Creek. The full technical report is available on the Halleck Creek
tab on our website or upon request.
Figure 1 - Grade Tonnage Curve for TREO 2023 v
2024 Update
Adding ARR’s outstanding drilling results from
Sept/Oct 2023 to the geological model for Halleck Creek expanded
laterally and vertically. The Sept/Oct 2023 drilling also provided
data to geostatistically define measured resource extents at
Overton Mountain and redefine indicated resource extents at Red
Mountain with high degrees of geological confidence. Measured and
Indicated resource estimates increased by 795 million tonnes
(128%), inferred resource estimates increased by 117 million tonnes
(15%).
ARR is working with Stantec, an international
engineering consulting provider, to develop a JORC scoping study at
Halleck Creek. Technical, mining and economic designs are being
evaluated for the Halleck Creek project as part of the scoping
study. Stantec has determined that an economic cut-off grade of
1,000 ppm TREO defines in-situ resource estimates within proposed
mining and economic limits. In the opinion of the Competent Person
the 1,000 ppm TREO cut-off grade meets the conditions for reporting
of a Mineral Resource with reasonable prospects of eventual
economic extraction. A 1,500 ppm cut-off grade was used in the 2023
resource determination, prior to advancing metallurgy.
American Rare Earths CEO, Donald Swartz,
commented on the results:“These results are illustrative
of the enormous potential of the project when the resource
increases 64% during a developmental drilling campaign, which
increased measured/indicated resources 128%. Typically, you’ll see
the resource decrease as infill drilling takes place – instead
we’re seeing the opposite, with only 25% of the project being
drilled to this point. The low-cost mine plan when combined with
the breakthroughs around metallurgy have increased our confidence
and excitement about this world class deposit. At 27% MREO, we look
forward to releasing the results of the scoping study that is
nearing completion.”
Magnet rare earth elements (Nd2O3, Pr6O11,
Sm2O3, Dy2O3, and Tb4O7) comprise about 27% of the total resource
with an average grade of 774ppm MREO with a contained metal
estimate of 1.8 million tons.
Figure 2 - MREO distribution in drilling data
Summary of Key Material Information used
to Estimate the Mineral ResourcesTenement and Land
StatusWyoming Rare (USA) Inc. a wholly owned subsidiary of
American Rare Earths, Inc. controls 367 unpatented lode mining
claims totalling 6,320 acres (2,558 ha) across the Halleck Creek
Project area. ARR controls an additional 4 Wyoming State Mineral
Leases which total 1,844 acres (745 ha).
Total mineral control held by ARR in the Halleck
Creek district is 8,165 acres (3,304 ha).
Project GeologyHalleck Creek
resides in Red Mountain Pluton (RMP) of the 1.43 Ga Laramie
anorthosite complex (LAC) is exposed in the Laramie Mountains, a
Laramide aged uplift, in southeastern Wyoming.
Primary rare earth bearing rock types within the
RMP consist of clinopyroxene quartz monzonite (CQM), and
biotite-hornblende quartz syenite (BHS). Allanite is the primary
rare earth element (REE) host mineral at the Halleck Creek project.
Allanite is a sorosilicate within the epidote group which contains
a significant number of REEs in its primary mineral structure.
Allanite usually occurs in association with clinopyroxene,
hornblende, olivine and zircon agglomerated as “mafic clots” within
CQM.
DrillingSince April 2022
through October 2023 ARR has drilled 53 RC and 17 Core holes for a
total 70 holes and 9,031 meters. All holes have been included in
geological resource models.
Resource ClassificationThe
Resource is classified as either measured, indicated, or inferred.
Subject to the application of “modifying factors” the measured plus
indicated component of the resource may allow for a formal
evaluation of its economics with the potential to be converted to a
Probable Ore Reserve. Therefore, a high degree of conservatism has
been adopted as the underlying premise of the resource
classification and, in particular, the indicated component.
The classification at Halleck Creek is based on the following
key attribute:Geological continuity between drillholes
- Mineralization
is controlled by batholith-scale fractionation. Hence, both
empirical observations and statistical analysis confirm a very high
degree of continuity with the respective rock masses at Overton
Mountain and Red Mountain.
- This is
supported by variography.
Drill spacing and drill density
- The drill
pattern is mostly irregular with drill spacing of approximately
200m.
- At Overton
Mountain an area has been infilled on a systematic grid spacing of
approximately 90m. The Competent Person considers this spacing to
be adequate to support a measured classification.
Resource ReconciliationBetween
2024 and 2023, total estimated resources increased by approximately
0.91 billion tonnes (64%). The estimated TREO grade decreased by
133 ppm TREO (-3%). Measured + Indicated resource increased by 0.79
billion tonnes (128%). Inferred resources increased by 0.18 billion
tonnes (15%).
Differences in the resource estimates occurred due to:
- Change in
cut-off grade from 1,500ppm to 1,000ppm TREO
- Increase in
resource dimensions because of Sept/Oct 2023 Exploration
- Drilling to 302 meters demonstrated
that the resource continues at depth and remains open
- Drill hole spacing of new and
existing data increased confidence levels and allowed the resource
area to expand
- Drill hole spacing allowed measured
resources to be defined and indicated resources to be
redefined
- Drilling assays increased the grade
of the resource
Mining and
MetallurgyTraditional open pit surface mining would be
employed at Halleck Creek. The mineralised rock material occurs at
surface and continues at depth as shown in block models.
ARR previously released results of preliminary
metallurgical test work demonstrating that up to 93% of gangue
material can be separated from mineralised rare earth minerals
using dense media separation (DMS) and wet high intensity magnetic
separation (WHIMS).
Figure 3 – Preliminary Beneficiation
Flowsheet
ARR is undertaking preliminary work on leaching
and refining of REE from WHIMS feed concentrate. Initial testing
indicates that recoveries between 80% and 100% of light REE can be
achieved through direct acid leaching at lower temperatures. The
results from this testing will be announced as soon as
completed.
Permitting AssessmentsARR is
developing needs assessments for potential development of mines at
Halleck Creek. in phases. The first phase consists of acquiring a
license to explore on state mineral leases from WDEQ to collect
rocks for bulk material testing and pilot scale metallurgical test
work. The second phase is to prepare and implement a detailed
baseline environmental plan and mining permit to mine on state
mineral leases.
ARR is developing partnerships with various
Wyoming based businesses and entities to advance development of a
mine on state lands. The Company believes such partnerships provide
the shortest path to mine permits, maximizing value Wyoming state
resources, being good environmental stewards of the project.
Future Work for 2024
- JORC Scoping Study being prepared by
Stantec
- Test mine approval for bulk sample
permits (aka license to explore)
- Additional detailed metallurgical
test work for beneficiation, leaching and refining of rare earth
oxides
- Options for Pilot Plant being
studied
To see the full JORC Table you can find that
here.
Competent Persons Statement:
The information in this document is based on information compiled
by personnel under the direction of Mr. Dwight Kinnes who is Chief
Technical Officer of American Rare Earths. This work was reviewed
and approved for release by Mr. Kinnes (Society of Mining Engineers
#4063295RM) who is employed by American Rare Earths and has
sufficient experience which is relevant to the style of
mineralization and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 JORC Code. Mr Kinnes consents to the
inclusion in the report of the matters based upon the information
in the form and context in which it appears.
About American Rare Earths
Limited:American Rare Earths (ASX: ARR | ADRs - OTCQX:
AMRRY | Common Shares - OTCQB: ARRNF) owns the Halleck Creek, WY
and La Paz, AZ rare earth deposits. The company’s flagship project
at Halleck Creek, WY, has the potential to become the largest and
most sustainable rare earth projects in North America. American
Rare Earths is 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 continues
to evaluate other exploration opportunities and is collaborating
with US Government-supported R&D to develop efficient
processing and separation techniques of rare earth elements.
Head OfficeAmerican Rare Earths Ltd1658 Cole
Blvd, Suite G30Lakewood, CO,
80401info@americanrareearths.com.auamericanrareearths.com.au
For additional information:
Susan Assadi Media
Relations USsassadi@americanree.com347 977 7125
Beverly Jedynak Investor Relations
USBeverly.jedynak@viriathus.com312 943 1123
Figures accompanying this announcement are available
at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/7adc2e51-9884-4c49-91e6-1fd81bd04139
https://www.globenewswire.com/NewsRoom/AttachmentNg/582810ac-439c-43b4-9b68-f5fecbd77934
https://www.globenewswire.com/NewsRoom/AttachmentNg/22315392-22a8-4a56-bffd-63d9e55dad5b
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