American Rare Earths Boosts Halleck Creek Potential with Resource Expansion and Metallurgical Breakthrough

April 29, 2025 04:04 PM AEST | By Team Kalkine Media

Google News:

American Rare Earths Boosts Halleck Creek Potential with Resource Expansion and Metallurgical Breakthrough — Image source: Shutterstock

Recent News

Archer Aviation stock falls after raising $850m in direct offering

India reportedly mulls grounding 787s as it investigates the fatal cra...

Trump says Iran failed to make a deal, warns of more attacks

Barclays: History suggests S&P 500 could mark turning point

Highlights

Resource estimate at Halleck Creek rises to 2.63 billion tonnes

Tenfold upgrade in TREO concentration via low-cost separation techniques

Scoping study confirms strong project economics and expansion potential

American Rare Earths Ltd (ASX:ARR) has delivered substantial advancements at its flagship Halleck Creek Project in Wyoming during the March quarter, significantly enhancing its strategic position in the rare earths sector. The quarter saw the company expand its mineral resource and achieve what it has termed a landmark metallurgical breakthrough, both of which contribute to strengthening the long-term potential of the project.

The updated JORC-compliant mineral resource estimate for Halleck Creek grew by 12.2%, now totaling 2.63 billion tonnes at 3,292 parts per million (ppm) total rare earth oxides (TREO). Notably, the Cowboy State Mine resource, a key area within the project, posted a 29.4% increase, bringing its total to 543 million tonnes at 3,438 ppm TREO. These results place Halleck Creek among the largest rare earths resources in North America, strengthening its appeal amid rising interest in rare earth assets and further positioning it as a compelling opportunity within the broader universe of ASX mining stocks.

Adding to this momentum, the company has reported a major metallurgical breakthrough through large-scale beneficiation test work. Utilizing gravity and magnetic separation techniques, TREO concentrations were upgraded tenfold while reducing non-rare earth content by 93.5%. This development is poised to significantly lower processing volumes and operational costs, bolstering the economic viability of the project.

An updated scoping study, released in March, reinforces the project’s commercial strength and scalability. Under a base case scenario of 3 million tonnes per annum (Mtpa), the project carries a net present value (NPV10%) of US$558 million with an internal rate of return (IRR) of 24%, backed by a capital investment of US$456 million. A larger 6 Mtpa scenario illustrates even more robust potential, with a NPV10% of US$1.17 billion, IRR of 28.4%, and capital expenditure of US$737 million.

Encouragingly, only 2.4% of the total resource is expected to be mined during the initial 20-year mine life, highlighting further room for growth and expansion.

Operational progress continued with the issuance of a permit for test mining, trenching, and bulk sampling at the Cowboy State Mine. Bulk samples are intended for pilot-scale processing at the company’s Wyoming-based facility to refine extraction techniques ahead of development.

Financially, American Rare Earths reported a cash position of A$12 million at quarter-end, supplemented by A$2.2 million in listed investments. Strategic financing pathways also remain active, including a Letter of Interest from the US Export-Import Bank for up to US$456 million and grant backing from the State of Wyoming.

Additionally, the company received a US$2 million payment plus accrued interest from Cobalt Blue Holdings (ASX:COB) under a promissory note, along with the issue of 335,882 COB shares. A further repayment is scheduled for October 2025.

These milestones position American Rare Earths well to advance Halleck Creek into a strategically significant source of critical materials.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.