Chairman’s Address to American Rare Earths Shareholders
Dear Shareholders,
As I reach out to you on behalf of the Board during this Annual General Meeting, it's evident we are at a pivotal moment in our journey and within the U.S. rare earth industry. The current geopolitical landscape, marked by tensions and trade restrictions on rare earth exports from a key nation, has intensified our nation’s focus on establishing a secure mine-to-magnet supply chain.
In light of these circumstances, American Rare Earths is making significant strides with our flagship Halleck Creek Rare Earths Project. This initiative not only serves as an essential national asset but also aligns seamlessly with efforts to reduce dependency on foreign mineral sources, ultimately enhancing national security and creating job opportunities. With only one operating rare earths mine in the U.S. at present, Halleck Creek represents a critical solution to mitigate foreign reliance and boost domestic production capabilities.
Throughout the current fiscal year, we have achieved remarkable progress across various vital aspects:
Progress in Project Development
With the recent JORC resource estimate update, we have confirmed that Halleck Creek holds 2.63 billion tonnes at 3,292 ppm TREO. This positions our project among the most significant rare earth deposits in the United States.
Technical Advancements
Our team has made noteworthy advances in ore beneficiation and hydrometallurgical processing techniques, particularly in leaching and impurity removal. Following these encouraging developments, we have provided an updated mineral processing flowsheet tailored for Halleck Creek’s ore, setting the stage for a detailed Pre-Feasibility Study to be carried out in the future.
Streamlined Permitting Process
Our initial phase of development on Wyoming State land has paved the way for a straightforward permitting process that will last two to three years. This is in stark contrast to the over ten years required for federal approvals, allowing us to make substantial headway in our permit application.
This year has seen a bolstered financial foundation for our endeavors, with a successful placement of A$15 million in July, alongside additional funds raised through options and repayment agreements. By the end of September, we were positioned to leverage a remaining A$8.8 million for further project developments.
Recent Key Achievements
Since our last financial period, we have continued to garner significant progress:
- Around 3,080 tonnes of ore were extracted and processed at the Cowboy State Mine, with samples dispatched for testing across multiple locations.
- We achieved a processing breakthrough with successful atmospheric tank leaching tests, revealing exceptional rare earth recoveries and the ability to remove impurities more effectively.
- Our technical team's results from initial tests of the Reflux Classifier Concentrator indicated promising implications for project economics, with potential changes in our processing flowsheet.
- Collaboratively, the SynBREE consortium has validated our ore quality, producing high purity rare-earth oxide concentrates.
- We've successfully completed critical groundwork needed for our permit application to mine.
- The addition of Jason Beckton to our Board as Non-Executive Director has greatly enhanced our strategic capabilities.
I extend my heartfelt gratitude to our management team, particularly Interim CEO Joe Evers, for their unwavering commitment amidst leadership transitions. We are nearing the conclusion of our search for a permanent CEO and expect to make an announcement shortly.
The focus ahead is clear: in the upcoming fiscal year, we will finalize our optimization tests, advance our engineering and procurement for the demonstration plant, and ensure that our permit-to-mine application meets all necessary standards.
Halleck Creek is an exceptional resource within a premier mining jurisdiction, equipped to supply essential rare earths for over a century. As we mitigate technical risks, we are on a path that aligns with the administration's objectives and promotes U.S. independence in critical minerals.
I sincerely appreciate our shareholders' ongoing support, as well as our dedicated employees and partners. Together, we are poised to make Halleck Creek a cornerstone of America’s critical minerals strategy, fulfilling essential long-term needs for rare earths in an evolving market.
Richard Hudson
Chairman
About American Rare Earths Limited
American Rare Earths is reshaping the U.S. rare earths landscape with our fully owned subsidiary, Wyoming Rare (USA) Inc., advancing the world-class Halleck Creek Project. This massive deposit positions us uniquely to contribute to America’s critical mineral independence, with a substantial JORC-compliant resource supporting robust mining operations in Wyoming.
Our dedication extends beyond mere production; we actively engage in environmentally responsible mining practices and innovate through research and development partnerships. As we align with national priorities, Halleck Creek is not just a project; it signifies a transformative milestone in securing U.S. supply chain resilience for generations to come.
Frequently Asked Questions
What is American Rare Earths focusing on for the upcoming year?
The company is concentrating on completing optimization tests, advancing engineering for the demonstration plant, and finalizing the permitting application.
What recent progress has been made on the Halleck Creek Project?
Key milestones include successful leach testing, advancements in ore processing technology, and the extraction of ore in preparation for further testing.
How significant is the Halleck Creek Project to U.S. mineral independence?
Halleck Creek is positioned as a vital national asset, capable of significantly contributing to domestic supply and reducing reliance on foreign imports, particularly from China.
Who leads the management during this transition period?
Interim CEO Joe Evers is currently leading the team, assisted by an experienced and dedicated management group through the company’s strategic milestones.
What role does Jason Beckton play in the company?
Jason Beckton has been appointed as Non-Executive Director, enhancing the board’s technical and strategic capabilities in advancing the Halleck Creek Project.
