American Rare Earths Ltd (ASX:ARR)’s expanded Halleck Creek Project in the US has revealed consistently high-grade surface samples with total rare earth oxides (TREO) averaging more than 3,000 parts per million (ppm).
The ‘2021 Technical Report of the Wyoming Halleck Creek Rare Earths Project’ report prepared by World Industrial Minerals (WIM) shows impressive surface sampling results over a substantially expanded tenement control footprint, which support the robust prospectivity of the extensive Halleck Creek project area.
The report provides an overview of the Halleck Creek Project area, regional and local geology, recent claim-staking activities, general mineralogy of the host rocks and summarises assays of rock samples collected across the project area.
ARR has filed for exploration drilling permits and JORC 2012 compliant exploration targets are being determined.
Shares have been up more than 30% to an intra-day high of A$0.215.
Report highlights
The highest grade observed in the samples collected in 2021 are:
The surface samples also host high-value neodymium (Nd) and praseodymium (Pr) with average values of 742 ppm for Overton Mountain and 661 ppm for Red Mountain study areas
The magnet rare earth oxides, NdPr, comprises 22% of TREO at an ideal 4:1 ratio.
A 62% increase of area under claim control, with 63 new lode claims staked, adding 1,193 acres (483 hectares).
The total area under mineral claim control (tenement area) is about 3,109 acres (1,257 hectares)
“Accelerates” timetable for exploration
ARR managing director Keith Middleton said: “The release of this report unveils the latest expansion and analysis of our Halleck Creek REE project.
“We are extremely excited about the results of the surface sampling.
“The TREO grades and the grades of key elements of Neodymium (Nd) and Praseodymium (Pr) in our surface samples accelerates the timetable to perform additional exploration of the project area.”
US domestic rare earths supply chain
The continuous trend of high-grade mineralisation of the exposed and accessible Red Mountain pluton presents a high-value opportunity for drilling 100 metres or deeper over significant acreage.
The report supports further development of the US domestic Rare Earths supply chain.
Downstream US magnet manufacturers will benefit from using a domestic raw material source upon passing of the recently introduced H. R. 5033 ``Rare Earth Magnet Manufacturing Production Tax Credit Act of 2021''.
Using a domestically sourced REE would increase the tax credit by 50% for each kilogramme of magnet manufactured.
Halleck Creek acquisition
The company completed the acquisition of the project from Zenith Minerals in June 2021 after the US-based leadership team successfully earned unanimous government approvals of the four associated exploration leases totalling 1,844 acres with the State of Wyoming.
This success reinforces the company’s strategy of basing key business and technical leadership near the US projects, activating their local relationships and knowledge of appropriate procedures.
After careful data analysis and the additional surface sampling, ARR created shareholder value by adding lode claims (tenements).
ARR staked additional areas, providing a more complete claim of the control area, especially in the geologic anomaly area known as the Red Mountain Pluton.
The 63 new lode claims, staked in 2021, added 1193 acres (483 ha), representing an increase of 62% compared to the acquisition from Zenith Minerals.
Easily accessible
The Halleck Creek project is accessible by state highways and locally maintained roads from Wheatland, Wyoming. Major rail and interstate highways are within 50 kilometres of Halleck Creek.
Electric power runs to the project area.
Halleck Creek is in the Laramie anorthite complex of the Precambrian age. The Red Mountain Pluton is the predominant are earth oxide bearing formation at Halleck Creek.
The Red Mountain pluton ranges in composition from fayalite monzonite, clinopyroxene quartz monzonite, and biotite–hornblende quartz syenite to granite.
The total mineral area controlled by ARR at Halleck Creek covers 3,109 acres (1257 hectares).
ARR controls 68 unpatented lode claims at Halleck Creek covering 1265 acres (512 hectares and four state mineral leases covering 1,844 acres (745 hectares).
Halleck Creek resides in the Laramie anorthite complex of the Precambrian age.
The Red Mountain Pluton is the predominant Rare Earth Oxide bearing Formation at Halleck Creek.
The Red Mountain pluton ranges in composition from fayalite monzonite, clinopyroxene quartz monzonite, and biotite–hornblende quartz syenite to granite.
Surface Sampling
Since 2010, 259 valid samples have been collected across the Halleck Creek Project Area, with around 200 surface samples collected in 2021.
The highest grade observed in samples collected in 2021 are: TREO: 5,756 HREO: 552 Magnet Minerals Oxide: 1,433
In about 197 surface samples in the Overton Mountain and Red Mountain study areas, the average TREO is about 3,349 ppm TREO and 3,002 ppm TREO, respectively.
The surface samples also host high-value NdPr with average values of 742 ppm for Overton Mountain and 661 ppm for Red Mountain study areas, with an average of 702 ppm.
Exploration drilling
ARR is proposing to drill five core holes on BLM land and claims in the northern area of Overton Mountain.
Notice of Intent documents have been filed with the regional BLM field office in Rawlins, Wyoming.
ARR plans to drill additional exploration holes on state land and leases in the southern Red Mountain area.