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Highlights
- Halleck Creek resource upgraded to 2.63 billion tonnes
- Testwork significantly improves processing efficiency
- Updated study shows potential billion-dollar project upside
American Rare Earths (ASX:ARR) has reported a notable advancement at its flagship Halleck Creek Project in Wyoming, delivering key milestones during the March 2025 quarter. The company revealed a substantial increase in its JORC-compliant mineral resource, improved metallurgical testwork results, and strong project economics in an updated scoping study—all of which signal growing potential for this rare earths venture to emerge as a strategic contributor to the energy transition and supply chain diversification in North America.
The latest resource upgrade, announced on February 4, lifted the total estimated resource at Halleck Creek by 12.2%, reaching 2.63 billion tonnes at 3,292 parts per million (ppm) of total rare earth oxides (TREO). Within that, the Cowboy State Mine resource jumped 29.4% to 543 million tonnes at 3,438 ppm TREO, further validating Halleck Creek as one of the largest rare earth deposits on the continent.
A major step forward came with successful large-scale metallurgical testwork in February, which utilized gravity spirals and magnetic separation. This method removed 93.5% of non-rare earth material, cutting downstream processing volumes and operating costs significantly. These promising results support the process flow assumptions that will inform the forthcoming pre-feasibility study.
The updated scoping study incorporated both the upgraded resource and the improved testwork. For the 3 million tonnes per annum (Mtpa) base case, the study outlined a net present value (NPV10%) of US$558 million and an internal rate of return (IRR) of 24%, based on a capital outlay of US$456 million and a payback period of 2.7 years. Notably, the 6 Mtpa case more than doubled the project value, yielding an NPV10% of US$1.17 billion and an IRR of 28.4%. These projections are based on utilizing only 2.4% of the total resource over a 20-year mine life, leaving room for considerable scaling.
Further supporting development, American Rare Earths has received an exploration licence to conduct test mining and bulk sampling at the Cowboy State Mine—an essential step in preparing for pilot-scale processing at its Wyoming facility.
In terms of financial position, American Rare Earths ended the quarter with A$12.0 million in cash and an additional A$2.2 million in financial assets. The company also received 335,882 shares from Cobalt Blue (ASX:COB) as part of amended loan repayment terms and maintained an 18.92% stake in Godolphin Resources (ASX:GRL), aligning its strategy with long-term value growth.
As interest in ASX dividend stocks grows among investors seeking stable returns, American Rare Earths’ developments add diversity to resource-focused portfolios. Additionally, given the project’s scale and potential economic contribution, it may play a role in future ASX200-linked resource narratives.
With a strengthened balance sheet, progressing project metrics, and ongoing engagement with the US Export-Import Bank regarding a potential US$456 million finance facility, American Rare Earths continues to position itself as a rising name in the rare earths sector.
