American Rare Earths Ltd (ASX:ARR) has received good news in the form of highly promising assay results from recent exploration drilling in the Southwest area of its flagship La Paz project in Arizona, USA.
The assays demonstrate significant expansion potential of the 170-million-tonne La Paz resource.
From February to April this year the company drilled nine holes for 821 metres and collected 677 samples. The assay results from the first 332 samples demonstrate rock type associated with higher rare earth grades.
Extensive rare earth enrichment
Two drill holes showed extensive rare earth enrichment over lengths exceeding 50 metres.
Total rare earth oxide (TREO) mineralisation in these were high, with LP22-SW05 containing 501 parts per million (ppm) TREO over 74.2 metres and LP22-SW04 recording 498 ppm TREO over 52.9 metres.
High-value magnetic rare earth oxides comprise 27% of the TREO discovered.
Assay results also reconfirm extremely low thorium and uranium levels.
The deposit remains open at depth, with opportunities for vertical and lateral extension.
Once the company receives the remaining results a more detailed technical report will follow.
Accelerated exploration plans
Due to these promising assay results, the company will now accelerate its exploration plans to expand and upgrade the current JORC 2021 resources at La Paz.
Planning is well underway for this exploration program and the company will update the market once it has finalised drilling permits.
CEO and managing director Chris Gibbs commented: “We are very excited by these results received from the drill program at the La Paz Southwest zone.
“These results confirm our exploration target potential and reinforce our strong view that the new mineralised zone has significant potential to expand our current JORC resource.
“An upgrade gives La Paz the potential to be one of the largest rare earths projects in North America.”
Next steps
ARR is working on establishing a JORC resource for the southwest area after receiving the initial drilling assays. Enhanced grades and thickness of the mineralised zone have accelerated exploration planning.
ARR geologists will continue to review the drill hole data and await assays results from the remaining core holes. The company will update the market on these results along with a full technical report.