American Rare Earths CEO thinks Halleck Creek “will be one of the most important rare earths projects in the United States, or even the world”

American Rare Earths Limited (ASX: ARR | OTCQB: ARRNF) (“ARR”) is a leading developer of rare earth elements with a strong focus on developing sustainable and cost-effective extraction and processing methods. ARR’s 100% owned three rare earths projects are all located in the USA. ARR has recently decided to re-domicile to the USA in line with their projects’ location.

Their two key projects are Halleck Creek in Wyoming, and La Paz in Arizona. Both have the potential to be among North America’s largest rare earth deposits.

Halleck Creek Rare Earths Project’s latest developments

In March 2023, ARR announced a JORC Resource at Halleck Creek of 1.43 billion tonnes with an average TREO grade of 3,309 ppm, and an average NdPr grade of 734 ppm. That’s a huge resource and there is even more potential to grow it further. ARR states that “currently less than 25% of the Halleck Creek District has been drilled and the deposit remains open”.

As announced on June 28, 2023, ARR plans to drill a further ~2,400 meters at the Halleck Creek Project. The purpose of the drill program is to both upgrade the Resource and potentially grow it further. The upgrading goal is to “define a significant volume of measured and indicated resources“. Drilling is expected to commence later in Q3, 2023 subject to receiving permits.

ARR CEO and Managing Director, Chris Gibbs, commented:

“The outstanding results we achieved with the JORC Resource of 1.43 billion tonnes at Halleck Creek provides the foundation to build what we think will be one of the most important rare earths projects in the United States, or even the world. The 1.05 million tonnes of NdPr at Halleck Creek can unlock current boundaries of the electrification of the US economy.“

An overview of ARR’s 100% owned Halleck Creek Rare Earths Project in Wyoming, USA

Source: American Rare Earths company presentation

In other news, on July 6, 2023, ARR announced that they are advancing new and potentially better processing methods for their Halleck Creek Rare Earths Project. This is a key development as processing rare earths is a complex and expensive process, mostly done in China. ARR state:

“…..the company is actively engaged in US Government-funded research aimed at developing cleaner and cheaper processing methods for rare earths, utilizing biological techniques. In collaboration with renowned institutions and laboratories, American Rare Earths is making significant strides towards this goal….the development of a new method that employs a protein isolated from bacteria to extract and separate rare earth elements in a more environmentally friendly manner. With the potential for scalability, this breakthrough could be instrumental in the development of a domestic supply of rare earth metals, reducing the ecological impact associated with traditional extraction methods.“

Note: Bold emphasis by the author.

A reduced ecological impact would also be potentially beneficial when it comes to project permitting.

ARR is collaborating with partners to develop new biological methods to extract and separate rare earth elements

Source: American Rare Earths company presentation

Also announced on June 2, 2023, Halleck Creek ore achieved very positive initial metallurgical test results using Wet High Intensity Magnetic Separation (WHIMS) which yielded “72% recovery and rejected 77% of feed mass, an upgrade ratio of 3.1”. This was using a simple process flow sheet to produce a rare earth concentrate and maximize the recovery of magnet metals neodymium and praseodymium (NdPr).

ARR is studying using annualized ore processing of 10, 15 and 20 million tonnes per annum feed rate to the concentrator which would equate to a modeled production of 3,800 tonnes, 5,700 tonnes and 7,600 tonnes, respectively of the highly valuable NdPr oxides contained in mixed rare earth carbonate. At the upper end of these projections that would put ARR in the league of western market leaders such as Lynas Rare Earths Limited (ASX: LYC) and MP Materials Corp. (NYSE: MP), in terms of NdPr production volumes.

Near-term catalysts for the Company at Halleck Creek will be results of the detailed metallurgical testing, any results from baseline environmental test work, further drilling results and a possible resource upgrade, and any further news regarding their co-development work to produce new biological methods to extract rare earths. Beyond that the next large step is a Preliminary Economic Assessment, perhaps in H1, 2024.

Closing remarks

ARR continues to do the hard work to build a strong future for the Company. To date, results at Halleck Creek have been very encouraging. A huge resource, good recovery rates, and potential to one day achieve very significant volumes of NdPr. Any success with biological rare earths processing would be a nice bonus.

American Rare Earths trades on a market cap of A$74 million.

The Critical Minerals Crisis excerpt — “We are now at an inflection point for our society. If we can secure the supplies and the processing capacity for the minerals critical for the technologies we now take for granted in our daily lives, then our nations will flourish and grow. If not, then our standard of living will decline, and those who have the critical minerals and the industrial bases to refine and fabricate them surge ahead of us. Our politicians and policymakers are woefully ignorant of this reality. This is the greatest danger of all to our lifestyle and security.” — Jack Lifton, Co-Founder & Co-Chairman, Critical Minerals Institute

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Jack Lifton asks where are the “experts?”

In American Common Law an “expert” is defined as someone who knows more than the ordinary person about the subject matter at hand. In my youth, after attending graduate school and while attending Law School, I was frequently retained and asked to appear in court as an “expert witness” for litigation around electrical, electronic, and chemical accidents, fires, and explosions. In the fifty years since then I have continued to observe, and, I hope, learn about the operation and management of the material world. This has led me to characterize myself as an “observer” rather than as an expert. Here are my most recent observations and some of my thoughts about them:

The production and volume of production of an individual chemical element in any form, compound, metal or alloy, is a function of its value to society at any given time. The need will be determined by the importance of societal values of the moment. Up to and including 1945 that need was determined almost entirely by war. Since 1945 a new factor, civilian consumerism, has become the dominant driver for the production of many formerly little-known, and rare, and difficult to produce in volume, chemical elements. Although the chemical engineering necessary to produce these rare elements in useful forms and relatively large quantities was paid for as a necessity for future war needs by the U.S. Defense Department (formerly known as the War Department). That funding mechanism faded away along with the lunar exploration program in the 1970s when cold war replaced hot war as the policy of the then two hegemons, the USA and the Soviet Union.

It was, at first, and for a long time not necessary for the big mining, chemical, or metallurgical companies to produce large quantities of the minerals and metals required for the mass production of the consumer and military devices necessary for the modern economies of the rich nations, because those necessary quantities, until the second decade of the 21^st century, were small.

Then, in the second decade of the twenty-first century, the political push for EVs and then alternate energy entered the picture through the currently fashionable “fight against climate change.” Unlike, “global winter,” the “covid crisis,” and now the AI “disaster”, all of which were previously, and in the case of “AI”, currently, existential the fight against climate change has manifested itself in a battle to see who can most rapidly (appear to) destroy the cheap energy century that brought so much growth to the West. In North America and Europe, this has materialized as a rush to build out a wind turbine and solar infrastructure to replace fossil fuels as the major source of the energy required to produce electricity. On top of that it has been decreed by the ruling classes of the elected and the elect (the wealthy) that no one who is worthy shall drive any vehicle not powered by the electricity stored in a rechargeable battery that feeds an electric motor.

Thus the relatively small and manageable demand for rare technology metals has exploded into an intense drive to expand the production of these materials. This has driven a focused increase not only in exploration, but more importantly in the researching and developing of new technologies for extracting, refining, and fabricating end-user forms of the rare technology metals. Commercially, so far, there has been little success in developing new extraction and processing technologies. And, ominously, exploration has discovered few “new” discoveries of high enough grade and accessibility to be nominated as “deposits” to be developed into economical mines.

The policymakers, nonetheless, continue to ignore their own failings in understanding the economics of natural resource production and the self-defeating hypocrisy of the anti-mining lobby.

The academic and bureaucratic observers of the economy who advise the policymakers are not at all experts in those things in which they have no hands-on experience.

American Rare Earths Limited (ASX: ARR | OTCQB: ARRNF) (“ARR”) is focused on developing its 100% owned Halleck Creek Rare Earths Project in Wyoming and La Paz Scandium and Rare Earths Project in Arizona. ARR stated that these projects “both have potential to be among the largest, rare earths deposits in North America.” The Company also owns the Searchlight Rare Earths Project in Nevada, USA.

American Rare Earths 3 projects in the USA

^{Source: Company presentation}

Note: The Halleck Creek Project now has a resource not yet shown on the image above (see below for details)

Halleck Creek Rare Earths Project in Wyoming – Maiden Resource – 1.43B tonnes

The Halleck Creek Project stands out for its good grade and potential huge size, as well as having the key magnet rare earths Neodymium and Praseodymium (NdPr).

ARR’s March 17 news release gives some idea of the huge project size stating: “Final drill assays indicate a significant rare earth deposit in Wyoming, spanning over 10 square kilometers to depths of 150 meters.“

Then on March 31, 2023, ARR announced some very important news when it reported a maiden JORC Resource estimate for its Halleck Creek Rare Earths Project. The news stated:

“The JORC Resource at Halleck Creek is 1.43 billion tonnes with an average TREO grade of 3,309 ppm, and an average NdPr grade of 734 ppm. The JORC Resource estimate has exceeded expectations in comparison to previous exploration target estimates and has demonstrated the Halleck Creek project has the potential to become a world class deposit.“

Note: Bold emphasis by the author.

ARR’s CEO stated:

“With a maiden JORC Resource estimate of 1.43 billion tonnes this project is strategically significant, containing over 4.73 million tonnes of rare earth oxides. With only a quarter of the licence area drilled and remaining open at depth, the upside potential is significant. The Halleck Creek project is shaping up to be a strategic asset for the USA to supply rare earths for future generations...

Global magnetic rare earth oxide consumption is forecast to more than triple by 2035. The US government has made no secret that it is seeking to onshore supply of all critical materials for supply chain and national security purposes. There is only one producing rare earth mine within the USA, the Mountain Pass mine in California. The USA needs a number of these mines to secure onshore supply of rare earths and we believe Halleck Creek is part of the future solution.“

Halleck Creek test work already demonstrates that the ore responds well to conventional processing technology, which reduces operating and capital costs. The ore has exceptionally low levels of radioactive penalty elements such as uranium and thorium, which is great news as this allows for further reducing processing costs while boosting the ESG profile. Finally, the Project is close to infrastructure and a highly skilled workforce.

The next steps for the Project include metallurgical test work and a Scoping Study later in 2023.

Halleck Creek Project cross section below provides an overview of the Red Mountain and Overton Mountain areas

^{Source: ARR news release March 17, 2023}

Why is American Rare Earths’ stock price virtually unchanged since the great resource announcement?

A “world class deposit” and in the USA. This is superb news for the Company, yet the stock price barely moved. Why?

The reason may be that Tesla recently announced plans to eliminate the use of rare earths in its ‘next generation’ EVs. This is the platform to build a cheaper EV, often called Tesla Model 2 or the Tesla Compact Car. It remains to be seen if this change will succeed or eventually move across to all Tesla models. Some of Tesla’s Investor Day 2023 comments were:

“We have designed our next drive unit, which uses a permanent magnet motor, to not use any rare earth materials at all……so we can make lower-cost products that are still efficient and compelling, and we can make them at scale.”

To be clear, it still needs still to be seen if Tesla can achieve this goal. We need to remember that the most powerful and efficient electric motors use the magnet rare earths NdPr. By having an efficient motor, you use less power and can therefore use a smaller battery for the same output, thereby reducing battery costs.

Furthermore, EV drivetrains (essentially the motors) are just one part of the global total demand picture for Neodymium Iron Boron (“NdFeB”) magnets, representing 21% of rare earths demand in 2022. Other key demand drivers for NdFeB magnets include wind turbine motors, electrical appliances (PCs, smartphones, etc), and various other electric motor uses.

What this all means is that while EVs are an important driver of NdPr demand, they are by no means the only driver. Also, for now, NdFeB magnets remain the preferable option for use in most EVs, especially those sold into western markets where quality matters.

Tesla boasted at Tesla Battery Day in 2020 that they would start producing lithium from clay using only salt. Of course, this has never happened. Perhaps that was a ploy to get lithium prices lower while Tesla continued to secure supply. One can question Tesla’s motives regarding rare earths, only time will tell.

Closing remarks

The current dip in sentiment in the magnet rare earths space caused mostly by the Tesla news but also by a Q1/2023 China EV sales slowdown, should only be a temporary blip along the way for what still looks like a very strong decade for the magnet rare earths.

Companies such as American Rare Earths that can progress large-scale quality projects in the USA should do very well.

American Rare Earths trades on a market cap of A$93 million.

ARR is definitely worth a second look after the recent great resource announcement at Halleck Creek and the potential for Halleck Creek to become the largest North American rare earths deposit and a world-class deposit.

In this InvestorIntel interview, Jack Lifton talks to American Rare Earths Limited’s (ASX: ARR | OTCQB: ARRNF) President North America Melissa ‘Mel’ Sanderson about it portfolio of rare earths assets in the United States, including Arizona, Nevada, and Wyoming, and the fact that it is well funded with $15 million in the bank. Providing an update on their scandium-rich La Paz rare earths deposit in Arizona, Mel also discusses American Rare Earths’ recent high-grade assay results from the Halleck Creek Rare Earths project in Wyoming.

Speaking about the exceptionally low uranium and thorium content at both of their projects, Mel goes on to discuss American Rare Earths’ US Government funded R&D partnerships including with the Lawrence Livermore National Laboratory, Ames National Laboratory, Arizona State, and Penn State University. As the only rare earths junior explorer focused on biomining, Mel explains how American Rare Earths is helping in developing “cleaner, greener processing and separation technologies for rare Earths.”

To access the full InvestorIntel interview, click here

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About American Rare Earths Limited

One of the only ASX-listed companies with exposure to the rapidly expanding US market, American Rare Earths is developing its 100% owned magnet metals projects, La Paz in Arizona, and Halleck Creek in Wyoming. Both have the potential to be among the largest, rare earths deposits in North America. The company is concurrently evaluating other exploration opportunities while collaborating with US Government supported R&D to develop a sustainable domestic supply chain for the renewable future.

To know more about American Rare Earths Limited, click here

Disclaimer: American Rare Earths Limited is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

The race is on. It seems like there are a lot of junior miners out there working on new or improved technology to process or refine their commodity in a better, more efficient manner. This makes a lot of sense when you think about it. Obviously, the world is on a decarbonization kick, so it’s only a matter of time before the carbon footprint of the raw materials starts to come into focus. It will help differentiate you from any competitors out there mining the same mineral, assuming you have any. If you happen to be fortunate enough to be located in a jurisdiction that is close to the demand centers and has abundant clean energy (like hydroelectric power) then that could make you the #1 supplier of a commodity.

One entity looking to control its own destiny, while being fortunate enough to be located in a key jurisdiction, is Imperial Mining Group Ltd. (TSXV: IPG | OTCQB: IMPNF). Imperial is a Canadian mineral exploration and development company focused on the advancement of its technology metals projects in Québec, Canada. The Company’s flagship Crater Lake Scandium-Rare Earth property is located 200 km northeast of Schefferville, Québec, and is accessible via fixed-wing aircraft or helicopter. The property consists of 96 contiguous claims covering 47.0 km², owned 100% by Imperial. The Company is led by an experienced team of mineral exploration and development professionals with a strong track record of mineral deposit discovery in numerous metal commodities.

In mid-2022, Imperial announced the results of a positive Preliminary Economic Assessment (PEA) for the Crater Lake TG Zone Scandium (Sc) – Rare Earth Element (REE) deposit from Imperial’s independent consultants WSP Canada. The results show positive cash flow, strong Internal Rate of Return (IRR), and positive Net Present Value (NPV) metrics at discount rates of up to 15% for a potential mining operation at the Crater Lake project. Highlights of the PEA include: a pre-tax NPV of C$2.97 billion and an after-tax NPV of C$1.72 billion (10% discount rate); pre-tax IRR is 42.9% and an after-tax IRR of 32.8%; and a pre-tax capital payback of 2.5 years from the start of production.

All of the PEA information was completed prior to the summer drilling program where the Company completed a total of 8 drillholes for 1,663.0 m. Results were encouraging and give inference to grade and tonnage increases to the TG North Lobe Deposit resource. Drilling indicates that the southern portion of the TG scandium Zone is composed of two different Sc bearing ferrosyenites and hosts a higher proportion of the higher-grade pyroxene-rich ferrosyenite. The mineralization of both Sc-bearing ferrosyenite zones is open at depth below the 200 m vertical level and along strike and appears to show great potential for additional scandium mineralization. With all of the results in, Imperial plans to undertake an updated 43-101 Mineral Resource Estimate with the goal of converting all of the Inferred Mineral Resources into the Indicated or Measured Mineral Resources category.

With all that said, the Company’s latest news is my main focus today. Imperial Mining just announced the filing of patent applications for its two-stage hydrometallurgical methods and processes for the extraction of scandium and rare earth elements from Crater Lake project mineralization titled “HIGH PRESSURE CAUSTIC LEACH METHODS AND PROCESSES FOR RECOVERY OF SCANDIUM AND RARE-EARTH OXIDES”. Imperial also provided an update on the Crater Lake Scandium Project flowsheet development program which commenced in early 2022 at SGS Canada, Quebec City and Peterborough and is partially financed by a $245,355 grant from the Quebec Ministry of Energy and Natural Resources. The flowsheet development program was focused on further optimization of the mineral processing flowsheet by rejecting olivine, a non-Sc-REE-bearing mineral from the mineral concentrate and processing the olivine-depleted mineral concentrate through the patent-pending high-pressure caustic leach process for recovery of Sc and REE. During the flowsheet development program, Imperial invented a patentable process for rejecting olivine from the scandium-bearing mineral concentrate.

I won’t begin to try and explain the science of what this all means other than to say simpler is usually better. The easier and more efficiently you can do something typically equates to a lower carbon footprint and less of an environmental liability. Just having the right, in-demand resource isn’t good enough anymore, at least in most parts of the world. The production of that resource has to be done in a responsible, sustainable manner. This C$15 million market cap company is taking steps to be a leading-edge processor of Sc and REE which could help propel them to the top of the supply chain.

The rare earths sector has had plenty of good news in 2022 including the recently announced proposal by the European Commission (“EC”) for a European Raw Materials Act. A very telling comment in the announcement gives a big clue as to which critical materials hold the greatest concern. The EC stated: “Lithium and rare earths will soon be more important than oil and gas……Our demand for rare earths alone will increase fivefold by 2030.” The supply risk for key rare earths is a problem for all western countries. China dominates the rare earths supply chain (58% of mines, 85% of processing) and the production of powerful rare earth magnets used in EVs, wind turbines, and most military hardware that employ powerful magnets. The U.S has already started various initiatives to support the rare earths supply chain, including some funding from the Infrastructure Act. Last month the Biden administration announced $2.8 billion of grants for various critical materials and battery supply chain related projects in the USA.

So clearly the funds are now flowing and the race is on to develop both an EU and a U.S critical materials and battery supply chain. Given the rising global geopolitical tensions Europe and USA will now need to support the critical materials sector like never before – both funding and permitting.

Source: American Rare Earths company presentation

Today’s company is working as fast as they can to help create a U.S source of critical rare earths from their three USA rare earths projects.

American Rare Earths Limited (ASX: ARR | OTCQB: ARRNF) is focused on developing their 100% owned La Paz Scandium and Rare Earths Project in Arizona, USA. The Company’s other two projects are the Halleck Creek Project in Wyoming and the Searchlight Rare Earths Project in Nevada, USA.

American Rare Earths’ 3 USA rare earths projects currently being explored and developed

Source: American Rare Earths company presentation

La Paz Project update

The La Paz Project has high-value magnet rare earths (NdPr) as well as scandium with a 2021 JORC Resource of 170.6 million tonnes at an average grade of 469ppm Total Rare Earth Oxide (“TREO”) (contained ~80 million kgs TREO, plus 4.4 million kgs of Scandium Oxide (Sc2O3)). American Rare Earths Limited has recently completed the metallurgical test work at La Paz. The results were successful using the Watts & Fisher’s proprietary technology for the extraction of rare earth metals. According to the Company: “The technology shows good promise with further development, moving into piloting down the track. Rapid dissolution of rare earth values within 2 to 3 minutes at leaching temperatures above 225°C.” Next steps at La Paz include South-West Area resource expansion and then a PEA.

The Halleck Creek Project update

At the Halleck Creek Project, the Company continues their drilling campaign to define a significant JORC Resource. The Company stated recently: “The drilling commenced early October and is progressing well. It is anticipated the campaign, analysis and subsequent announcements relating to a maiden JORC resource will be completed in the first quarter of calendar year 2023.” In good news for shareholders, the Halleck Creek exploration target has been increased by 328%, boosted by the newly staked claim area Bluegrass which indicates consistent rare earth mineralisation. Beyond that, the next steps include metallurgy testing.

American Rare Earths has also recently stated they are evaluating even more potential rare earth opportunities in North America. Finally, in more good news the Company’s wholly-owned US subsidiary, Western Rare Earths (WRE), and a consortium of companies (Phinix, LLC and Virginia) were awarded US$500,000 in R&D funding. The consortium will use the funding to develop extraction and separation focused processing technology studies on rare earths ore. The project goal is to produce light, medium, and heavy rare earth oxide products of greater than 95% purity.

American Rare Earths Limited trades on a market cap of A$91 million. Exciting times ahead for this fast-moving company — they are a member of the Critical Minerals Institute.

Over the years I have lost count of the times I have recommended that public companies secure a research report, simply because I personally love the benefit of third-party analysis and metrics. Toss in an analyst with more financial degrees than most CFOs such as eResearch’s Chris Thompson, and the analysis can prove beneficial to everyone reading the content, including the company and all of us interested in critical minerals. Having followed rare earths company Search Minerals Inc. (TSXV: SMY | OTCQB: SHCMF) (“Search”) for a decade now, the recent eResearch analyst report blind-sided me by the coverage in that it was a staggering 72-page overview, review and historical biography of not only Search Minerals, but a worthwhile read on the rare earths sector.

Now for my notes extracted from my review of the eResearch Report on Search, but again I urge you to access the eResearch analyst report directly to secure any answers you may be ‘searching’ for…

Search Minerals is developing their rare earths projects in Labrador, Canada. Their flagship project is the Port Hope Simpson (“PHS”) Property which includes the Foxtrot resource, Deep Fox resource, Silver Fox, Awesome Fox, and Fox Meadow deposits. The Property is prospective for rare earth elements (‘REE’) Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb), Zirconium (Zr) and Hafnium (Hf). Search Minerals plans mining and primary production of the Deep Fox and Foxtrot deposits all going well by 2025 in Labrador and further refining of concentrate into REE oxides and carbonates on the Island of Newfoundland thereafter.

The updated 2022 PEA resulted in a post-tax NPV8% of C$1.31 billion and a post-tax IRR of 41.5%. Initial CapEx was estimated at C$422 million (including a C$61 million contingency) with a mine life of 26 years.

Foxtrot and Deep Fox Resource estimate – 31 December 2021

Source: Search Minerals news April 11, 2022

Search Minerals development timeline plan

Source: eResearch report on Search Minerals p.15

Highlights of the eResearch report (“The report”) on Search Minerals, which was initiated on September 14, 2022:

• The Importance of Rare Earth Elements (REE) – If you are new to rare earths, this report highlights the many uses of rare earths including their role in the EV sector. Of interest was the quote on page 4: “Neodymium (Nd) is the strongest known magnetic substance and Nd magnets are used in applications that require strong, compact permanent magnets, such as cellular phones, electric motors, hard disk drives, televisions, and medical devices.” Also an interesting point for your next trivial discussion with friends over a glass of wine, is that the smartphone (screen and electronics) contains at least 9 rare earth elements.
• Search Minerals PEA (2022) Highlights (based on the Foxtrot and Deep Fox Resource) – Mine production of 2,000 tpd (720,000 tpa) over a 26-year mine life, including both open pit and underground operations….Underground mining capital in Year 7 of C$54 million is funded from operations….Annual production of approximately 1,437 t of Magnet Rare Earths Oxides (Nd+Pr: 1,291 t, Dy: 125 t, and Tb: 21 t).
• Key Projects Funded for C2022: Funded for Deep Fox exploration, preparation of 70t bulk sample, and working towards the start of a Feasibility Study.
• Strong Management Team – Management has extensive experience, geological knowledge of the region, and are experts in REE processing. Since I know many of the members of this team, I urge you to review the geological team as many in this sector often refer to them as the best in the business, specifically Dr. David Dreisinger whom Jack Lifton and I have used in numerous interviews over the years to help the InvestorIntel.com audience understand the rare earths market.
• Search Minerals Appears Inexpensive Using Different Valuation Metrics – The Report looked at several different valuation methodologies for Search Minerals. eResearch initiates coverage on Search Minerals and reports a Speculative Buy Rating.

Again, the eResearch report makes for compelling reading and I would encourage anyone serious about investing in rare earths investors to review the entire report.

Most certainly the potential 17x upside (p 5) if Search Minerals succeeds to production is something to consider, especially given the backdrop of forecast shortages of the key magnet rare earths this decade as the EV and wind energy sectors potentially boom. Investors should also consider the various risks that junior miners face as not all will succeed.

Search Minerals Inc. currently trades at C$0.10 with a market cap of C$41 million.

Disclosure: The valuations presented in this article are those of eResearch and not InvestorIntel. Search Minerals is a digital media advertiser on InvestorIntel.com and pays for both banner ads and interviews, however, neither eResearch nor Search Minerals have paid for this content.

Appia Rare Earths & Uranium Corp. (CSE: API | OTCQX: APAAF) recently reported results from its 2021 drilling program and work completed this year on its Alces Lake property in Northern Saskatchewan. While results are still pending from the 34 holes drilled at the recently renamed site Magnet Ridge (formerly Augier), other areas returned values as high as 14.95% TREO over 0.66 metres. This is high compared to most deposits. As of early July Appia has drilled over 14,000 metres in 2022 and plans to drill up to 20,000 metres this year, which should provide them with valuable information on the Alces Lake deposit. Magnet ridge is interesting as Appia has reported it outcrops at surface with a strike length of about 300 metres and a width of 175 metres, and has been penetrated to over 100 metres deep.

The mineral hosting the rare earths at Alces Lake is monazite. Monazite is regularly processed in China to produce rare earths, so making a concentrate and separating the rare earths is an established technology. In several jurisdictions, this could be a problem as monazite is typically associated with the radioactive elements Thorium (Th) and Uranium(U). However, it comes down to the old paradigm, location, location, location. Being situated in Saskatchewan, Appia is in a jurisdiction that understands radioactive materials and that they can be properly handled and stored, and in the case of uranium can be a valuable resource. The other advantage for Appia being in Saskatchewan is that the Saskatchewan Research Council is building a pilot plant for rare earth separation over the next 2 years. This will give Appia the ability to test their material locally, which is a significant advantage.

A 2020 Appia presentation indicates Neodymium (Nd) oxide levels of 17.4% and Praseodymium (Pr) oxide of 5.4% which gives a combined total of just under 23%. This is close to the Lynas levels from its Mt. Weld deposit, which Roskill’s Market Outlook 2015 indicates to be 23.8%. The Mountain Pass Mine, the deposit in California owned by MP Materials, has Nd+Pr levels at 16.3%. so they would have to process up to 50% more material to get the same revenue levels as Appia or Lynas. In addition, Appia’s report shows added value in Terbium (Tb) and Dysprosium (Dy). Looking at recent pricing in Shanghai Metal Markets (SMM), the Nd/Pr holds 87.8% of the total value. Terbium and Dysprosium add another 0.3%. This assumes that all the elements are sold, which typically is impossible, especially the Cerium, which is over 49% of the total volume. However, there may be markets in North America and possibly Europe for Cerium and Lanthanum. Their current price in China is $1.22 and $1.15 per kg respectively and freight can be a high proportion of the total cost of the product outside of Asia.

One way to look at the value of the deposit is to see what potential revenue can be generated from the four main magnetic elements (Neodymium, Praseodymium, Terbium and Dysprosium). Assuming the long range plans would be to build a 20,000 TPY plant, which is similar to the previous Molycorp output and just below the Lynas present output of around 22,000 TPY, their projected revenues would be around US$500 million per year. This assumes 90% recoveries and revenues only from Nd+Pr. Any sales of Cerium and Lanthanum would be minimal but an added bonus.

In addition, Appia has properties in the Elliot Lake area in Ontario. This is in the right area code as from the mid-late 1950s to 1990 there were 10 mines producing Uranium. Again location, location, location. Given the push for electric vehicles and the corresponding increase in electrical demand, countries are going to review their long term needs including Germany and China, and possibly India, and given alternative producing options nuclear is a cleaner way than coal or gas to produce electricity. Also given the current Russian situation more focus will come on nuclear and correspondingly Uranium. Thorium may also come into demand as it can reduce the operating temperature and thereby improve safety.

All things considered, Appia has an interesting opportunity and with the grades shown so far, and is poised to take the next steps to becoming a potential domestic producer of rare earths.

In this InvestorIntel interview with host Tracy Weslosky, Vital Metals Limited‘s (ASX: VML | OTCQB: VTMXF) Managing Director Geoff Atkins talks about the company moving from rare earths miner to producer in the coming months.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Geoff talks about production from Vital’s Nechalacho rare earths project in the Northwest Territories going to its Saskatoon extraction plant, with production of high purity rare earth carbonate forecast to commence in June 2022, and its rare earths product to be sold to Vital’s take off partner in Norway later this year. Geoff goes in to explain, for Vital “this year is that transformational process from developer through to operator.”

Being an Australian company with both its cornerstone project and processing facility in North America, Geoff also discusses increasing the company’s presence in the North American markets in the coming months as it moves to producer.

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About Vital Metals Limited

Vital Metals Limited (ASX: VML) is Canada’s first rare earths producer following commencement of production at its Nechalacho rare earths project in Canada in June 2021. It holds a portfolio of rare earths, technology metals and gold projects located in Canada, Africa and Germany.

To know more about Vital Metals Limited, click here

Disclaimer: Vital Metals Limited is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In this episode of the Critical Minerals Corner, Critical Materials’ industry expert and InvestorIntel Editor-in-Chief Jack Lifton is joined by Critical Minerals Corner Co-Host & InvestorIntel Columnist Byron King, and Geoff Atkins, Managing Director of Vital Metals Limited (ASX: VML) to discuss how Vital Metals plans to guarantee feedstock to the non-Chinese rare earths supply chain and about how a rare earths project is different from any other mining project.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), the panel discussed the high grades of neodymium and praseodymium found at Vital Metals’ Nechalacho Rare Earths Project in Canada. With a growing push from the governments globally to establish rare earths supply chains outside of China, Geoff provided an update on Vital’s off-take agreements signed with new separation facilities entering Europe and North America.

To watch the full interview, click here.

About Vital Metals Limited

Vital Metals Limited is Canada’s first rare earths producer following commencement of production at its Nechalacho rare earths project in Canada in June 2021. It holds a portfolio of rare earths, technology metals and gold projects located in Canada, Africa and Germany.

Nechalacho Rare Earth Project – Canada

The Nechalacho project is a high grade, light rare earth (bastnaesite) project located at Nechalacho in the Northwest Territories of Canada and has potential for a start-up operation exploiting high-grade, easily accessible near surface mineralisation. The Nechalacho Rare Earth Project hosts within the Upper Zone, a JORC Resource of 94.7MT at 1.46% TREO comprised of a Measured Resource of 2.9MT at 1.47% TREO, an Indicated Resource of 14.7MT at 1.5% TREO, and an Inferred Resource of 77.1MT at 1.46% TREO.

To learn more about Vital Metals Limited, click here

Disclaimer: Vital Metals Limited is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].