American Rare Earths Ltd expanded its resource at the Halleck Creek Project in Wyoming during the March quarter and hit upon a what it has called a major metallurgical breakthrough.
Expanded mineral resource estimate
The company expanded its JORC-compliant mineral resource estimate by 12.2% to 2.63 billion tonnes at 3,292 parts per million (ppm) total rare earth oxides (TREO), with higher grades reported across the Red Mountain and Cowboy State Mine areas.
The Cowboy State Mine resource grew by 29.4% to 543 million tonnes at 3,438 ppm TREO, reinforcing Halleck Creek's position as one of North America's largest rare earth resources.
The company also made a major metallurgical breakthrough, with large-scale beneficiation test work achieving a tenfold upgrade in TREO concentration using low-cost gravity and magnetic separation methods.
The process reduced non-rare earth material by 93.5%, substantially lowering processing volumes and supporting lower operating costs.
Robust economics
The updated scoping study, released on March 7, confirmed the project's robust economics and scalability.
Under a 3 million tonnes per annum (Mtpa) base case, the project delivers a net present value (NPV10%) of US$558 million and an internal rate of return (IRR) of 24% for a capital expenditure (CAPEX) of US$456 million.
A 6 Mtpa case demonstrates a NPV10% of US$1.17 billion, IRR of 28.4%, and CAPEX of US$737 million.
Importantly, only around 2.4% of the total resource would be mined under the initial 20-year plan, which augurs well for future expansion.
Development activities progressed with the granting of a licence permitting test mining, trenching and bulk sampling at the Cowboy State Mine.
Bulk samples will be used for pilot plant testing at the company’s Wyoming facility, allowing refinement of processing techniques ahead of project development.
During the quarter, American Rare Earths received US$2 million plus accrued interest from Cobalt Blue Holdings under the terms of a promissory note and was issued 335,882 COB shares. A further A$1 million repayment is due in October 2025.
As at March 31, the company held a cash balance of A$12.0 million, with an additional A$2.2 million in listed investments. Net expenditure for the quarter totalled A$0.45 million for operating costs and A$1.522 million for exploration and development activities.
The company continues to benefit from strategic funding initiatives, including a Letter of Interest from the US Export-Import Bank for up to US$456 million in project finance, grant support from the State of Wyoming and advisory engagement with BMO Capital Markets for future partnerships.