18 March 2024 SYDNEY - Australia; American Rare Earths (ASX: ARR | OTCQX: ARRNF and AMRRY), an ASX listed rare earth elements explorer, is thrilled to share the outcomes of the comprehensive Halleck Creek Scoping Study Technical Report conducted by Stantec Consulting Services Inc. This pivotal study underscores the project's potential as a low-cost, scalable, and world-class REE venture situated in Wyoming, USA, a significant mining hub.
Key Highlights of the Study:
- The study projects an attractive NPV8 of US$673.9 million and NPV10 of US$505.1 million (pre-tax), with an IRR of 22.5% and a payback period of 2.9 years, based on a 3Mtpa operating scenario. The total initial capital expenditure is estimated at US$456.1 million, including a US$76.0 million contingency.
- Life of Mine (LOM) average cost is calculated at $38.38/kg NdPr Equivalent, showcasing a competitive edge against the global leader's cash cost.
- The project benefits from favorable geology, mining economics, and an efficient beneficiation and concentration circuit, leading to low operating costs and good recovery rates.
- Designed for scalability, the project's initial phase targets 3.0 Million tonnes per annum (Mtpa) of mining, with the capacity for future expansion highlighted by a 6 Mtpa economic case.
- The study emphasises the project's ability to separate individual rare earth products locally, enhancing revenue and reducing dependency on international processing.
Donald Swartz, CEO of American Rare Earths, expressed his enthusiasm for the project's prospects:
“The work presented herein is a culmination of several years of hard work that highlights the potential of Halleck Creek to be the next world-class REE project. The study has revealed a truly elegant solution, as its simplicity unlocks the potential to decouple Western supply chains from Chinese oligopolies. The favourable geology combined with conventional technology, low-operating expenses, modest initial capital expenditures, associated with an expedited path to production have converged to offer a project that is compelling – even when compared against the heavily subsidised Chinese state-owned entities. As the Western downstream industries for rare earths are being advanced from a nascent stage, we have right-sized the initial phase of development to produce a reasonable amount of separated rare earths, within a project area which is highly scalable over time. This is a project that could yield transparent pricing, provide reliable supply, and allow the U.S. to REEshore this industry.”
About us:
American Rare Earths is developing its 100% owned magnet metals project, Halleck Creek in Wyoming and La Paz in Arizona, both with the ptential to be among North Americas largest rare earth deposits.
Contact details:
Jane Morgan