American Rare Earths (ASX: ARR | OTCQX: ARRNF and AMRRY) has released the findings of the Halleck Creek Scoping Study Technical Report by Stantec Consulting Services Inc., highlighting the project’s potential as a low-cost, scalable, and world-class rare earth elements (REE) venture in Wyoming, USA.
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 per cent and a 2.9-year payback period based on a three million tonnes per annum (Mtpa) operating scenario.
Initial capital expenditure is estimated at US$456.1 million, including a US$76 million contingency.
The life of mine (LOM) average cost is calculated at $38.38/kg NdPr Equivalent, showcasing competitive cost advantages.
The project, situated in a significant mining hub, offers scalability with an initial phase targeting three Mtpa of mining, with potential for future expansion to six Mtpa.
The study emphasises the project’s operational efficiency, with favourable geology, mining economics, and an efficient beneficiation and concentration circuit leading to low operating costs and good recovery rates.
Additionally, the project’s ability to separate individual rare earth products locally enhances revenue and reduces dependency on international processing.
American Rare Earths CEO Donald Swartz stated: “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.”
Swartz highlighted the project’s strategic importance in decoupling Western supply chains from Chinese oligopolies and its potential to provide a reliable supply of rare earths to the United States.
American Rare Earths are developing its 100 per cent owned magnet metals project — Halleck Creek in Wyoming, and La Paz in Arizona — both with the potential to be among North America’s largest rare earth deposits.
