(Kitco News) - American Rare Earths (ASX: ARR) (OTCQB: ARRNF) today announced a maiden JORC resource estimate for its Halleck Creek rare earths project in Wyoming, USA.
According to a statement, initial JORC resources at Halleck Creek amounted to 1.43 billion tonnes with an average total rare earth oxides (TREO) grade of 3,309 parts per million (ppm), containing over 4.73 million tonnes of rare earth oxides.
The company said the JORC resource estimate has "exceeded expectations" in comparison to previous exploration target estimates and has demonstrated that the Halleck Creek project is positioned itself to be "one of the largest" rare earth projects in the United States and has the potential to become a "world-class" deposit.Importantly, the company added that the resource area covers 384 hectares (949 acres) of the total exploration area held by the company which totals 3,304 hectares (8,165 acres), "meaning the JORC resource has the potential to greatly increase with future exploration campaigns."
CEO and Managing Director Chris Gibbs commented, "These results confirm the company has a strategically significant rare earth asset critically, in the United States, which should enable the largest economy in the world to reduce its dependence on China or other imported rare earths. There is only one producing rare earth mine within the USA, the Mountain Pass mine in California. The USA needs a number of these mines to secure onshore supply of rare earths and we believe Halleck Creek is part of the future solution.
"With a maiden JORC Resource estimate of 1.43 billion tonnes this project is strategically significant, containing over 4.73 million tonnes of rare earth oxides. With only a quarter of the licence area drilled and remaining open at depth, the upside potential is significant. The Halleck Creek project is shaping up to be a strategic asset for the USA to supply rare earths for future generations".
The company also noted that the metallurgical test work is ongoing to optimize the process flow sheet, adding that the metallurgical test work will provide the foundation for the scoping study scheduled for later this year.
American Rare Earths is developing its 100% owned magnet metals projects, Halleck Creek in Wyoming and La Paz in Arizona. The company is concurrently evaluating other exploration opportunities while collaborating with US Government supported R&D to develop a sustainable domestic supply chain for the renewable future.