American Rare Earths (ASX:ARR) Kicks Off Much-Awaited Drilling at La Paz Project

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Summary

  • Drilling has commenced on American Rare Earths’ (ASX:ARR) La Paz Scandium & Rare Earths Project.
  • The nine-drill-hole campaign is designed to increase the resource size and average grade.
  • The campaign will also pave the way for an advanced metallurgical study.

Western Rare Earths (WRE), the US-based wholly owned subsidiary of American Rare Earths Limited (ASX:ARR), has commenced drilling at its highly prospective La Paz Scandium & Rare Earths Project in Arizona, US.

Source: © Fambros | Megapixl.com

First Drilling Since 2012 To Boost Size and Grade

The world-class drilling team of Timberline Drillers started the campaign on 13 March 2021. This is the first drilling at the project location, La Paz in almost nine years. 

American Rare Earths intends to potentially increase the resource base by drilling at deeper depths and better defining the ore bodies.

The campaign will comprise nine drill holes down to a minimum depth of 61m each, to validate the extent of mineralisation in the new project area as previously indicated by surface sample results.

The investors took the news hand to hand, and their excitement was shown during the afternoon session when the stock of ARR climbed around 8.24% to trade at A$0.105. however, the stock closed flat at A$0.097 by the end of the session on 16 March 2021. 

Highly Prospective Project

The La Paz Project sits within a Fraser Institute global top 2 mining-friendly jurisdiction. The project delivers an opportunity for a high volume of low-grade critical mineral, low cost of open-pit production, and lower penalty element content.

The project has a JORC 2012 classified resource estimate of 128.2Mt @ 373.4ppm (0.037%) Total Rare Earth Elements.   

The project is also exempted from the Biden Administration moratorium, marking it among the very few mining asset classes favoured by the current US government.

Interesting Read: China targets US rare earth export; Australian miners shine

Advanced Metallurgy Work

American Rare Earths plans to forward 500kg of targeted core material to an advanced metallurgy laboratory for advanced metallurgy work. The primary metallurgy work will focus on utilising proven, economically viable processing. This work will result in a flowsheet, which will be the base of the Preliminary Economic Assessment, likely to be released by the end of 2021.

The company is motivated by the peer-reviewed, published research data, which reflects the production of the Lanthanide Rare Earths and Scandium Oxide at 99% and 96% efficiency, respectively.

ARR also plans to evaluate new ultra-high efficiency processing technologies in the backdrop of the same process, as this process produces a pregnant leachate solution.  

High Potential for Scandium in the US

ARR is eyeing to capitalise on the potential scandium opportunity by developing a new scandium resource estimate in the US.

Scandium was never mined nor extracted from streams or mine tailings in 2020 in the United States, as per the 2021 Mineral Commodity Summaries publication of the US Geological Survey. Also, there is a limited capacity to produce distilled scandium at existing facilities.

Apart from this, scandium was listed on the US' Final List of Critical Minerals as per a 2017 Presidential Executive Order.

Must read: 3 Rare Earth Stocks to Watch Out for in 2021

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