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American Rare Earths completes La Paz drilling with promising geology identified

Published: 00:41 21 Apr 2021 EDT

American Rare Earths Ltd - American Rare Earths completes La Paz drilling with promising geology identified
Drill site location at La Paz project in Arizona, USA.

American Rare Earths Ltd (ASX:ARR) (FRA:1BHA) has completed drilling at the La Paz Scandium and Rare Earths Project in Arizona, USA, with favourable geology identified.

Nine core holes were drilled ranging from 68 metres to as deep as 122 metres and the company has detected encouraging geology up to four times deeper than the resource depth of 30 metres.

This campaign indicates that there is potential to increase grade and resource size.

The original La Paz resource estimate used a cut-off grade of 300 parts per million (ppm) total rare earth elements (TREE) and ARR believes there is now an opportunity to increase the cut-off grade.

Drilling campaign

The company’s contractor Timberline Drillers started the campaign on March 13, 2021, and it was the first drilling at the project since 2012.

This diamond drilling campaign went smoothly and was completed faster than anticipated due to the competency of the rock to depth in the resource area.

The campaign produced about 4500 kilograms of samples from 682 metres of core which was transported from the site to an assay lab in Sparks, Nevada.

Core has been photographed and quarter core cut in preparation for assay.

Following assay of the core, a selection of up to 500 kilograms will be transported by air to Nagrom Laboratories in Perth, Western Australia.

There it will undergo advanced mineral processing and metallurgical test-work under the guidance of Wood PLC, an internationally recognised consulting group, and the company expects the first assays to be released by late May 2021.

Drilling objectives

The objectives of the drilling and metallurgical test-work at La Paz include:

  • To confirm the extremely shallow resource drilled to an average depth of 30 metres with a cut-off grade of 300ppm REE;
  • Seek higher grades of the premium valued scandium, REE magnet metals and heavy REEs, which were identified in the surface sampling program averaging 552ppm REEs over the original resources;
  • Potentially extend the resource to deeper depths; and
  • Test the extension of REE mineralization in the SW tenements.

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