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American Rare Earths (ASX: ARR | OTCQX: ARRNF | ADR: AMRRY) ("ARR" or "the Company") and its wholly owned subsidiary Wyoming Rare (USA) Inc. ("WRI") are pleased to announce a major milestone resource update for the Halleck Creek Rare Earth Project in Wyoming. The updated JORC-compliant Mineral Resource Estimates (MRE) further establish Halleck Creek as one of the largest rare earth deposits in North America and underscore ARR’s continued progress in unlocking its potential as a strategic U.S. asset.
Highlights
- Halleck Creek Total Mineral Resource Estimate increased by 12.2% to 2.63 billion tonnes at 3,926 ppm Total Rare Earth Oxides (TREO).
- Red Mountain Area within Halleck Creek saw a 29.7% growth in resources, increasing to 1.24 billion tonnes, with an 8.3% uplift in grade to 3,252 ppm TREO.
- Cowboy State Mine, representing the first phase of project development within Red Mountain, grew by 29.4% to 543 million tonnes, with a 2.7% increase in TREO grade to 3,438 ppm.
- The deposit remains open at depth and along strike, offering significant upside potential, with the mineral resource estimate covering approximately 16% of the greater Halleck Creek project surface area.
The Halleck Creek resource now exceeds 2.63 billion tonnes, representing a significant 12.2% increase over the previous estimate. This growth highlights the transformational scalability of the project, which remains open at depth and along strike.
The Cowboy State Mine, located within the Red Mountain area, continues to deliver robust resource growth and remains central to ARR’s development strategy. Its location on Wyoming State land provides a streamlined permitting process, accelerating ARR’s ability to unlock the project’s full value. The project’s favorable geology and near-surface mineralization support the potential for a low-cost open-pit mining operation, while ongoing metallurgical test work continues to demonstrate the potential for efficient processing of rare earths. These results reinforce ARR’s ability to support the U.S. government’s efforts to secure domestic critical mineral independence, reducing reliance on imports and supporting economic growth and national security objectives.
Chris Gibbs, CEO of American Rare Earths, commented:
"This resource update demonstrates the continued growth, scale, and strategic importance of Halleck Creek as a cornerstone project for the U.S. rare earth supply chain. With the deposit still open at depth, and along strike, the upside potential is truly remarkable. With the Halleck Creek mineral resource estimate covering approximately 16% of the greater Halleck Creek project surface area, we believe opportunities exist to expand mineral resource estimates with additional exploration."
“The expanded resources will strengthen the project's economics as we finalise the updated Scoping Study, which is set for release shortly, and continue integrating this data into the Pre-Feasibility Study, scheduled for completion later this year. Halleck Creek is positioned to become one of the most significant rare earth assets in North America, supporting U.S. critical mineral independence and economic growth.”
Next Steps and Path Forward
The updated resource model and mine plans will have a positive impact on Halleck Creek’s project economics, further enhancing its strategic importance. ARR is currently integrating the updated resource and high-grade data into the Scoping Study, which was originally released in March 2024. The updated study is nearing completion and will be released in February 2025.
In parallel, ongoing metallurgical test work continues to deliver promising results, highlighting the potential for cost- efficient processing at Halleck Creek. As outlined in the 2024 Scoping Study, approximately 90% of the gangue (waste) material can be removed during gravity and magnetic separation, significantly increasing REE grades through physical separation methods prior to leaching, which significantly reduces operational costs. Optimisation of these processing techniques is ongoing, and further results will be announced as the next round of metallurgical testing is completed in the March 2025 quarter.
In addition, the updated resource estimates will be incorporated into the ongoing Pre-Feasibility Study (PFS), which remains on track for completion later this year. The PFS will provide a more detailed evaluation of Halleck Creek’s technical and economic potential, supporting ARR’s phased approach to development and commercial production.
Technical Summary
Summary of Key Material Information used to Estimate the Mineral Resources
The updates to the geological models and Mineral Resource Estimates (MRE) were completed by Odessa Resources Pty. Ltd. on behalf of ARR. The updated MRE has been prepared in accordance with the 2012 JORC Code.
The results from the 2024 exploration drilling program at the Cowboy State Mine (CSM) area of Red Mountain, combined with additional surface sampling and geological mapping at Halleck Creek, have increased the in-situ resource estimates to 2.63 billion tonnes at an average grade of 3,292 ppm TREO (Table 1). This represents a 12.2% increase in in-situ tonnage compared to the January 2024 resource estimate for the entire Halleck Creek Rare Earth Project (Figure 4).
Table 1 – Mineral Resource Estimate at Halleck Creek (1000ppm TREO cut off)
The Halleck Creek rare earth project comprises two primary resource areas: Overton Mountain, located to the north, and Red Mountain, to the south (Figure 5). Within the Red Mountain area lies the Cowboy State Mine (CSM), a subarea where WRI is focusing its development efforts. The state of Wyoming owns both the surface and mineral rights within the CSM area, which are leased by WRI. This Wyoming ownership provides WRI with a streamlined permitting pathway through the state.
In 2024, WRI conducted drilling operations in the CSM area. The additional drill holes and assay data enabled the expansion of resource areas and provided detailed geological characterization of the rare earth-bearing Red Mountain pluton within the Red Mountain and CSM areas. As a result, the updated resource estimates apply to the Red Mountain and CSM areas. The Mineral Resource Estimate (MRE) for Overton Mountain remains unchanged.
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This article includes content from American Rare Earths Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Investor Insight
American Rare Earths is unlocking the USA’s rare earths potential through its strategic, high-value asset in Wyoming, ramping up its development to bolster the North American critical minerals supply chain.
Overview
American Rare Earths (ASX:ARR,OTCQX:ARRNF,ADR:AMRRY) is a critical minerals exploration company focused on its 100 percent owned Halleck Creek project in Wyoming. This project represents the largest known rare earth deposit in the US, with high concentrations of key magnet elements such as neodymium, praseodymium, dysprosium and terbium—essential components for renewable energy, electric vehicles and advanced defense systems.
The US currently depends on China for 80 to 90 percent of its rare earth processing, which poses a significant supply chain risk. Halleck Creek’s vast resource, with a 2.63-billion-ton JORC estimate at 3,292 parts per million (ppm) total rare earth oxide (TREO), provides an opportunity to secure domestic supply for nearly 100 years.
Beyond its substantial resource base, the project offers significant exploration upside, presenting a multi-generational opportunity to establish a sustainable rare earths supply chain in the US. The support from EXIM Bank further highlights the strategic importance of Halleck Creek in reducing U.S. dependency on foreign suppliers.Company Highlights
- American Rare Earth’s flagship project, Halleck Creek, is one of North America’s largest REE deposits. With a 2.63-billion-ton JORC resource at 3,292 ppm TREO, it holds the potential to meet US rare earths demand for approximately 100 years.
- The company is completely focused on developing a US-based critical minerals supply chain, aligning with US policies to reduce reliance on China for rare earth supply.
- The Halleck Creek project’s planned development consists of two phases. Phase 1 entails development of the Cowboy State mine, which is located entirely on Wyoming state land, enabling faster permitting and streamlined regulatory processes. Subsequently, cash flow generated from CSM will support development of the federal portions of Halleck Creek in Phase 2.
- This phased approach allows ARR to accelerate its pathway to production, enhance shareholder value, and strengthen its position as a key domestic supplier of rare earth elements in the United States.
- Well-positioned to address critical supply chain vulnerabilities, Halleck Creek benefits from strong federal and state support, including a non-binding EXIM Bank letter of interest for funding up to $456 million.
Key Projects
Halleck Creek Project (Wyoming)
The Halleck Creek project in Albany County, Wyoming, is the cornerstone of ARR’s growth strategy. Recognized as one of the largest, rare-earth deposits in North America, it boasts a JORC-compliant resource of 2.63 billion tons at 3,292 ppm TREO. The deposit is hosted in Precambrian granites and metamorphic rocks, which contain REE-enriched minerals like monazite and bastnaesite. The coarse-grained nature of the mineralization ensures cost-effective extraction and processing.
The high TREO content and low levels of impurities make Halleck Creek well-suited for producing separated rare earth oxides, particularly key magnet elements such as neodymium, praseodymium, terbium and dysprosium. The project’s proximity to established infrastructure, including roads and utilities, supports cost-efficient development. Detailed geological surveys have delineated a large, continuous mineralized zone, which currently covers only 16 percent of the total land package. Advanced metallurgical testing has confirmed recovery rates of up to 67 percent, with further optimization efforts ongoing. Drilling campaigns in 2024 successfully expanded resource estimates, validating the deposit’s scalability.
ARR plans to take a phased development approach for Halleck Creek, designed to maximize early value while minimizing risk. Phase 1 entails the development of the Cowboy State mine (CSM), which will focus on mining high-grade zones and generating early cash flow. Phase 1 will be developed entirely on Wyoming state land, enabling faster permitting and streamlined regulatory processes.
According to the Phase 1 Scoping Study, the CSM development is projected to require an initial capex of $380 million, with a 20 percent contingency. The study estimates an NPV of $430 million at a 10 percent discount rate and an IRR of 21.1 percent, based on a 3-million-ton-per-annum throughput rate. The project is expected to have a payback period of 2.9 years and a life of mine exceeding 20 years, with significant potential for future expansion.
In Phase 2, ARR plans to expand operations into federal land areas within the Halleck Creek property. This phase involves de-risking the federal portions of the project by leveraging cash flow from the initial phase and advancing permitting processes in parallel. Additionally, ARR is actively engaging with state regulators and local stakeholders to ensure compliance and support for its phased development approach.
Upcoming Work
ARR is advancing its development efforts on Halleck Creek over several fronts. The company plans to conduct additional drilling aimed at expanding the resource by targeting unexplored zones with known mineralization. In parallel, Phase 2 metallurgical testing will focus on improving recovery rates and producing high purity separated rare earth oxides to enhance project economics. To maintain its accelerated timeline, ARR is making progress on permitting, including advancing state-level approvals and environmental baseline studies for the CSM area. Furthermore, the company plans to initiate a pre-feasibility study (PFS) by late 2025, emphasizing a phased development strategy that includes the CSM as a key component.
La Paz Project (Arizona)
The La Paz project, located in western Arizona, is a promising asset in ARR’s portfolio, featuring a 171-million-ton JORC resource. The deposit is enriched in light rare earth elements, particularly cerium, lanthanum and neodymium, which are critical for renewable energy technologies and electric vehicles. The project benefits from excellent infrastructure, including proximity to roads and power. ARR continues to evaluate the potential for expanding the resource and advancing the project through further drilling and metallurgical testing. Although secondary to Halleck Creek, it holds potential as a long-term asset for ARR’s portfolio.
Beaver Creek (Wyoming)
This project is located near Halleck Creek and shares similar geological characteristics, indicating potential for significant rare earth mineralization. Preliminary fieldwork has identified areas with elevated rare earth element concentrations, and ARR plans to conduct detailed mapping and geophysical surveys to define drill targets.
Searchlight (Nevada)
Situated close to Mountain Pass, the only currently operating rare earth mine in the US, the Searchlight project is strategically located in a region known for its rare earth potential. ARR’s exploration strategy includes leveraging historical data and conducting modern geochemical sampling to identify high-priority areas for further exploration.
Leadership Team
Chris Gibbs - CEO & Executive Director
Appointed in November 2021, Chris Gibbs brings more than 30 years of experience in the resource sector across Australia, Canada, the US, South America, Africa and Europe. His track record includes driving growth and operational excellence for industry-leading mining companies. Prior to joining ARR, Gibbs held senior positions at Argonaut Gold, Centerra Gold, Barrick Gold, Placer Dome and Millennium Chemicals.
Joe Evers - President
Joe Evers has served in various leadership roles in the energy and mining industry. Most recently, Evers served as general counsel of American Rare Earths. Prior to that, he was corporate counsel at an international mining company and held positions of increasing responsibility in the land and policy departments at a publicly traded oil and gas company. Originally hailing from Sheridan, Wyoming, Evers received a bachelor’s degree and JD/MA in Environment & Natural Resources from the University of Wyoming. Evers was instrumental in securing a US$7.1 million grant from the State of Wyoming with support from partners Wyoming Energy Authority and the University of Wyoming Energy Resources Council.
Dwight Kinnes - Chief Technical Officer
A geologist with decades of experience, Dwight Kinnes has specialized in geological modeling of complex deposits in various international locations. Before joining ARR, he served as president of Highland GeoComputing LLC for 17 years, providing geological field services, modeling, GIS and database management to the mining industry.
Wayne Kernaghan - Company Secretary
Appointed on September 25, 2020. Wayne Kernaghan is a member of the Institute of Chartered Accountants in Australia with over 35 years’ experience in various areas of the mining industry. He is a fellow of the Australian Institute of Company Directors and a chartered secretary.
Board of Directors
Richard Hudson - Chairman
Richard Hudson contributes deep leadership expertise in mining and exploration, with a focus on mineral royalties, mineral economics, financial management, strategic planning and acquisitions. His extensive experience enhances the board's capacity to guide ARR's strategic initiatives.
Sten L Gustafson - Non-executive Director and Deputy Chairman
Sten Gustafson is the chief executive officer and a director of Pyrophyte Acquisition (NYSE:PHYT), a special purpose acquisition company focused on companies that provide products, services, equipment and technologies that support a variety of energy transition solutions. He is a highly experienced energy service industry executive, investment banker and corporate securities attorney. With over 25 years of experience in the global energy sector, Gustafson has advised on more than 100 corporate transactions worldwide worth over US$100 billion in value.
Melissa ‘Mel’ Sanderson - Non-executive Director
Melissa Sanderson’s international career has spanned diplomacy and mining for more than 30 years. She is adept at cross-cultural communication and brings exceptional leadership experience in inclusivity and diversity issues. At global mining leader Freeport-McMoRan, Sanderson sited, staffed and ran a corporate office focused on government and public relations and social responsibility programs. She has also served as a senior diplomat in the US Department of State.
Hugh Keller - Non-executive Director
Hugh Keller had a successful 34 year career as a partner at the law firm Dawson Waldron (now Ashurst) until retirement from full time legal practice in 2010. During this time, Keller served as joint national managing partner, Sydney office managing partner, chairman of the staff superannuation fund, one of the practice leaders, and as a board member. He was a non-executive director of ASX listed Thakral Holdings and a member of its audit committee until the company was acquired in a public takeover by Brookfield. He was a non-executive director of LJ Hooker and a member of its audit committee. He has also served as chairman of a large private investment company, several small investment companies and a private small exploration company. Keller has extensive legal experience and expertise in commercial contracts and arrangements, and public company audit committee procedures and requirements. He has led large teams of professionals and successfully managed people and resources in large projects.
Updated Scoping Study Highlights Billion-Dollar Potential— Positioning ARR as a Future Rare Earth Leader in the USA
HIGHLIGHTS
- Strong economics, scalable growth: 3 Mtpa base case offers NPV10% of US$558M, IRR 24%, with a low-risk CAPEX of US$456M.
- Billion-dollar potential: 6 Mtpa case delivers NPV10% of US$1.17B, IRR 28.4%, and CAPEX of US$737M.
- First-mover advantage: State land tenure accelerates permitting, positioning ARR as a leading U.S.- based rare earths developer independent of tariffs and reliance on foreign processing.
- Vast Scalability & Growth: The 3 Mtpa Phase 1 will mine ~62.3Mt of ore over 20 years, utilising just ~2.4% of the 2.63Bt JORC resource2. With further studies underway, Halleck Creek could support a larger, long-term operation, with potential for extended mine life and increased production capacity.
- Deposit remains open at depth and along strike, with the current JORC resource of 2.63Bt covering only ~16% of the greater Halleck Creek surface area, highlighting significant expansion potential.
Compiled by independent engineering firm Stantec Consulting Services Inc., the Study highlights Halleck Creek’s strong economic potential, strategic advantages, and clear pathway to development as a U.S.-based rare earths project. Located in Wyoming, a Tier 1 mining jurisdiction, Halleck Creek benefits from state land tenure, allowing for accelerated permitting and development.
Compelling Economics & Scalable Growth
The Updated Scoping Study confirms Halleck Creek as a world-class rare earths project with robust financials and long-term scalability:
- 3 Mtpa Base Case:
- NPV10% of US$558 million, IRR of 24%
- CAPEX of US$456 million, with a 2.7-year payback period
- Annual production: ~4,169 metric tons of TREO, including 1,833 metric tons of NdPr oxide
- 6 Mtpa Case:
- NPV10% of US$1.171 billion, IRR of 28.4%
- CAPEX of US$737 million, with a 1.8-year payback period
- Annual production: ~7,661 metric tons of TREO, including 3,344 metric tons of NdPr oxide
First-Mover Advantage & U.S. Supply Chain Security
As the only large-scale rare earths project in the U.S. with a clear path to production, ARR is positioned to secure a domestic, tariff-free supply of critical minerals for U.S. and allied markets.
- China controls over 90% of global rare earth refining. With the U.S. prioritizing supply chain security, ARR is uniquely positioned as a credible U.S.-based developer to deliver a fully integrated solution— from mining to refining.
- State land tenure accelerates permitting, avoiding the lengthy delays often associated with projects on federal land.
- Halleck Creek's 100% U.S.-based production and refining will ensure a secure, domestic supply of rare earth oxide metals—eliminating reliance on foreign supply chains and reinforcing the 'Made in America' commitment.
- Deposit remains open at depth and along strike, with the current JORC resource of 2.63Bt covering only ~16% of the greater Halleck Creek project area, highlighting significant expansion potential.
Clear Development Pathway & Future Growth
Halleck Creek’s staged development approach ensures financial and operational flexibility, allowing ARR to scale production in alignment with market demand:
- Base Case: 3 Mtpa – Low-risk entry to production to produce an average of 4,169 mt of TREO per annum, including 1,833 mt of NdPr Oxide.
- Alternate Case: Scalable to 6 Mtpa – Enhancing project economics, producing an average of 7,661 mt TREO per annum, including 3,334 mt of NdPr Oxide
- Future Expansion Potential: The Cowboy State Mine (“CSM”) represents only Phase 1 of Halleck Creek’s development, benefiting from a strategic permitting advantage. The 20-year CSM LOM plan includes mining approximately 62.3 Mt of ore—just ~2.4% of the total 2,627 Mt JORC Mineral Resource—highlighting the vast potential for extended mine life and increased production in future phases. Given the increasing demand for rare earths, ARR is evaluating further studies, as Halleck Creek could support a much larger, long-term operation, with potential for extended mine life and increased production capacity that could position ARR among the top rare earth producers outside China.
CEO Commentary
Chris Gibbs, CEO of American Rare Earths, commented:
"The Updated Scoping Study reinforces Halleck Creek strong economic potential, strategic permitting advantage and clear pathway to development. With a large-scale resource and favourable economics, we are uniquely positioned to help secure America’s rare earth supply and reduce dependence on foreign sources.
"The 6 Mtpa case highlights Halleck Creek’s billion-dollar potential, delivering an NPV10% of US$1.17B and an IRR of 28%, showcasing the project’s scalability. The 3 Mtpa base case offers a low-risk entry point, producing 1,833 metric tonnes of NdPr oxide annually, with an NPV10% of US$558M, an IRR of 24%, and a 2.7-year payback period.
"With a scalable development pathway under evaluation, Halleck Creek has the potential to become a major supplier to U.S. and allied markets. Future production scenarios could position ARR among the top rare earth producers outside China, reinforcing America’s supply chain security for decades to come.
"And we’re not just mining—we are developing a fully integrated U.S. supply chain, refining and producing high- purity rare earth oxides for American manufacturers. Halleck Creek aligns with the growing push for Made-in- America critical minerals, securing a domestic supply for defense, aerospace, and high-tech manufacturing.”
Next Steps & Milestones
Building on strong execution in 2024, ARR is advancing key milestones to further de-risk and develop Halleck Creek, as outlined in the Updated Scoping Study and supported by recent metallurgy results. These developments reinforce the project's scalability and strategic importance as a leading U.S. rare earths asset. With a staged development approach, first production could be as early as 2029, subject to ongoing technical and economic assessments. The Company is looking at ways to fast-track development, including plans to commence Phase One of a pilot plant for the beneficiation process. The roadmap ahead highlights key next steps for 2025 and the next major stage gate in the project’s development.
Click here for the full ASX Release
This article includes content from American Rare Earths, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
American Rare Earths Limited Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects