American Rare Earths produces first Wyoming oxides

Ore from American Rare Earths’ (ASX: ARR; US-OTC: ARRNF) Halleck Creek project in southeast Wyoming has for the first time been made into light and heavy rare earth oxide concentrates for a Department of Defense-linked agency.A research group assayed the concentrates to about 96.4% light rare earth oxides and 97.1% heavy rare earth oxides from 840 kg of ore composited from about 36 drill holes across the project, the company said Friday. These oxides are used in the production of permanent magnets.“These results provide a very meaningful third-party validation that light and heavy rare earths oxides can be produced from the Halleck Creek allanite hosted ore body,” interim CEO Joe Evers said in the press release.Third-party checkThe result marks third-party validation that the project’s allanite ore can upgrade to saleable rare earths precursors and highlights the value of Halleck Creek for the potential development of domestic sources of rare earths, used in various technologies for the green energy transition. Halleck Creek is also one of the largest rare earths projects in the U.S. by tonnage. The oxide work was conducted by researchers from the University of Kentucky, who worked with the Lawrence Livermore National Lab and Penn State University, part of the larger Defense Advanced Research Projects Agency on the “SynBREE” program. It’s focused on synthetic biology for biomining rare earth elements.The company’s shares trading in Sydney on Friday closed 4% or A1.5¢ higher at A37¢ per share. It has a market capitalization of A$208 million.Rare earth magnets are vital for electric vehicles (EVs), wind turbines, and advanced technologies—and demand is rising fast. Currently, EVs and wind account for just 17% of global magnet use. But by 2030, that share could jump to 42% to stay on track for Net Zero by 2050.Demand for magnetic rare earth elements (REEs) is expected to grow threefold by 2035, according to a report by McKinsey & Company. This increase could worsen global supply challenges.Sizeable contributionAmerican Rare Earths positions the Halleck Creek project’s first-stage mine, Cowboy State Mine (CSM), as feed for U.S. magnet makers as domestic capacity expands, though it’s still at the pre-feasibility stage. More than 15,000 tonnes of U.S. magnet manufacturing capacity has been announced by various entities, the company said.That implies annual needs of about 4,800 tonnes neodymium-praseodymium (NdPr) and about 600 tonnes heavy rare earths dysprosium and terbium. Against that, the CSM base case shows life-of-mine average annual output of about 1,833 tonnes NdPr, 98 tonnes dysprosium and 24 tonnes terbium.Upcoming catalysts include completing processing optimization, publishing the prefeasibility study and submitting a permit-to-mine application, although no timelines for these have been shared publicly.The Australian company emphasized that the SynBREE study is independent and separate from its pre-feasibility flow sheet. The powders are precursors, not final separated oxides. Overall rare earth recovery from the leachate was ~82%.MP Materials’ (NYSE: MP) Mountain Pass project in California is the sole producing rare earths mine in the U.S. In January, it started commercial production of NpPr metal at its new Independence plant in Texas, as well as trial production of neodymium-iron-boron magnets. It represents the first fully integrated rare earth metal, alloy and magnet manufacturing facility in the country.De-riskingThe lab result buttresses Halleck Creek’s de-risking story while American Rare Earths advances its own, conventional flow sheet. Earlier this year, the company announced a 10:1 upgrade in total rare earths oxide. They achieved this using gravity spirals and induced roll magnetic separation. Additionally, leach tests showed promise, leading them to consider atmospheric tank leaching.The company has also started ordering long-lead equipment for a demonstration plant and is planning test mining at CSM to supply bulk feed.Project fast-trackHalleck Creek’s first step is mining the CSM on Wyoming state land. American Rare Earths notes that the state’s permit-to-mine process usually takes two to three years. This is much faster than federal timelines. The broader project carries a JORC resource of 1.48 billion measured and indicated tonnes grading 3,334 ppm TREO and 1.14 billion inferred tonnes at 3,239 ppm TREO, according to an update in January.The 2025 updated CSM scoping study outlined initial capex of $456 million (C$630 million), a post-tax net present value at 10% discount of $558 million and a 24% internal rate of return. These assumptions anchor a non-binding U.S. EXIM Bank letter of interest for up to $456 million in debt and a separate $7.1-million Wyoming state grant.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com