American Rare Earths new La Paz rare earths and scandium samples grade 47% higher than resource estimate average

American Rare Earths Ltd’s (ASX:ARR) (FRA:1BHA) new samples from the La Paz Project in Arizona, USA, have returned grades 47% higher than the average JORC-compliant resource estimate of total rare earth elements (TREE). A total of 32 samples gathered last quarter were sent for metallurgical testing at the Saskatchewan Research Council facility in Canada with the composited grade recorded at 552 parts per million TREE - well above the cut-off grade of 300 ppm TREE in the resource estimate. Additionally, the composited grade of scandium in these same samples was 16 ppm. Shares have been as much as 18 per cent higher to A$0.105 intra-day. Phase 3 metallurgy work underway Additional samples for metallurgical testing were also collected in newly acquired claim control areas to the project’s southwest and are awaiting analysis. As recommended by WOOD PLC, the metallurgy program will be undertaken in a sequential manner, initially to determine if the ore can be successfully upgraded into a viable concentrate for treating in the refinery, followed by batch refinery test-work (acid bake, water leach and precipitation). The company believes the results may indicate the possibility that the ore body extends several kilometres with an area of alluvial cover over its centre as indicated by robust surface sample results similar to those in the maiden resource area. Alternatively, this pattern may represent the opportunity for a second, separate resource area. The upcoming drilling in areas southwest of the resource area are intended to assist the company understand which, if either, of these options may exist. Drill campaign ‘rig ready’ The core drilling program preparations for La Paz are well advanced with the following goals achieved prior to the pending final approval: Timberline Drilling Inc has been engaged and a deposit paid; Nine core drill locations identified (50% more than the original plan) to 2x the depth of the resource; Biological survey completed and accepted by regulatory officials; Archaeological survey completed and accepted by regulatory officials; Permit applications have been approved by the Bureau of Land Management and Arizona State Land Department; and Drill pads have been marked and scraped level, ready for drill rig mobilisation to each site. La Paz mineral resource The project was first drilled in 2011 when the maiden resource was established via 195 extremely shallow percussion drill holes to 30 metres. In 2020, this data was reviewed to confirm the previous defined resource estimate of 128.2 million tonnes at 373.4 ppm (0.037%) total rare earths elements (TREE). Emerging rare earths producer American Rare Earths is emerging as an alternative international supply chain to counter China’s market dominance of a global rare earths market expected to balloon to US$20 billion by the mid-2020s. As a large tonnage, bulk deposit, La Paz is also potentially the largest, rare earths deposit in the USA and benefits from containing very low penalty elements such as radioactive thorium and uranium. The company plans to deliver its first preliminary economic assessment for La Paz late in 2021 and is working with leading US research institutions to have La Paz’s mineral profile incorporated into emerging US advanced rare earth processing technologies. ARR is also acquiring a second US rare earths asset, Laramie project in Wyoming, with the transaction due to be completed by mid-2021.