Aclara Resources

Overview

Aclara Resources (TSX:ARA), a heavy rare earth element (HREE) exploration and development company, is on a quest to reinvent rare earths mining as a climate-friendly industry, sustainably supplying these critical metals the world requires to achieve a low-carbon future.

Aclara has patented unique process to extract heavy rare earths in a sustainable way. The process, called “Circular Mineral Harvesting” requires no tailings dam, prioritizes full revegetation of impacted areas, and recirculates up to 95 percent of water used and 99 percent of the main reagent (a common fertilizer that recovers the rare earths from the clays). Additionally, Aclara will leave a low carbon footprint due to the lack of explosives, grinding or milling in its extraction process.

This transformative new process has earned awards and accolades from the industry. Aclara was recognized at the 2024 Mining Technology Excellence Awards, winning two categories: Innovation and Environmental Sustainability. The company was also the recipient of the 2022 Sustainability Initiative of the Year award and the 2023 Innovation Award from SEAL Awards.

Aclara ran a successful piloting operation for the Penco Module’s ionic clays from June to August 2023. The company processed a total of 120 tonnes of ionic clays and produced approximately 107 kilograms of wet high purity Heavy Rare Earth Elements. The piloting operation was a pivotal element of Aclara's commercial strategy, resulting in the production of representative product samples that have been sent to more than ten separation companies across the United States, Europe, and Asia.

The company followed a similar piloting operation with its Carina Module (Brazil) clays from December 2023 to February 2024, producing ~15 kilograms of heavy rare earth mixed carbonates, which were key in commercial discussions with potential separators, other stakeholders from the rare earths value chain and original equipment manufacturers.

Aclara has released an updated preliminary economic assessment (PEA) on the Carina Module. Highlights of the updated PEA include: after-tax NPV of ~US$1.5 billion using an 8 percent discount rate; 27 percent internal rate of return over the 22-year life of mine and a payback period of 4.2 years; low initial capital cost of US$593 million and low sustaining capital cost of US$86 million; average annual net revenue and EBITDA of US$505 million and US$366 million, respectively; and high average net smelter return of US$52 per tonne processed compared to a low average production cost of US$13.6 per tonne processed.

Aclara plans to become a fully integrated heavy rare earths company, from mine to alloy. In collaboration with the Saskatchewan Research Council and Hatch, the company is developing a rare earths separation facility in the U.S. using a solvent extraction process. In addition, Aclara is developing its metals and alloys capability through a joint venture with CAP S.A, a Chilean company leading in the world. A strategic investment from CAP S.A in Aclara’s Chilean subsidiary of up to US$80M was announced in March 2024. CAP is one of the leading high-grade iron ore producers in the world, with four operating mines in Chile. In addition, CAP operates five ports, and has a strong connection with the people of the Biobío region, where it has been a major employer for several decades.