ARR’s Strategic Moves at Halleck Creek Signal Critical Step Toward U.S. Rare Earth Independence
American Rare Earths advances its Halleck Creek Project with record high-grade drilling results, a strategic collaboration with BMO Capital Markets, and a significant state grant, reinforcing its role in securing the U.S. rare earth supply chain.
- Record high-grade drilling intersections at Cowboy State Mine
- Engagement of BMO Capital Markets as financial advisor
- Secured key facility at Western Research Institute for pilot plant
- Received first reimbursement from $7.1 million Wyoming Energy Authority grant
- 12.2% increase in total mineral resource estimate to 2.63 billion tonnes TREO
Strategic Momentum at Halleck Creek
American Rare Earths (ASX: ARR) has reported a series of significant developments in its December 2024 quarterly activities report, underscoring its accelerating progress at the Halleck Creek Rare Earths Project in Wyoming. Central to this momentum is the engagement of BMO Capital Markets as a financial advisor, a move designed to catalyse strategic investments, partnerships, and offtake agreements. This collaboration aligns with the broader U.S. policy push to onshore critical minerals supply chains, positioning ARR as a key player in the domestic rare earths landscape.
The company's subsidiary, Wyoming Rare USA Inc., has also secured a pivotal facility at the Western Research Institute in Laramie. This site will centralise core sample storage and serve as the future location for a pilot plant, marking a tangible step towards operationalising rare earth processing capabilities within the U.S.
Exceptional Drilling Results Reinforce Resource Potential
ARR's drilling campaign at the Cowboy State Mine delivered some of the highest-grade Total Rare Earth Oxide (TREO) intersections recorded in North America. Notably, drill hole HC24-RM046 returned 148.0 meters at 4,451 ppm TREO, with peak values reaching 6,198 ppm TREO. Other significant intersections include 161.5 meters at 4,275 ppm TREO and 90.0 meters at 4,353 ppm TREO from adjacent holes. These results not only validate the project's geological models but also underpin an updated resource estimate announced on 29 January 2025, which saw a 12.2% increase to 2.63 billion tonnes at 3,292 ppm TREO.
The resource growth was particularly pronounced in the Red Mountain Area, which expanded by nearly 30% in tonnage and saw an 8.3% uplift in grade, alongside a 29.4% increase at the Cowboy State Mine. The deposit remains open at depth and along strike, suggesting further upside potential.
Financial and Corporate Developments
Financially, ARR remains well-capitalised with $11.74 million in cash as of 31 December 2024, supplemented by $4.6 million in financial assets linked to its holdings in Cobalt Blue Holdings and Godolphin Resources. The company raised $2.4 million through the exercise of unlisted options during the quarter, supporting ongoing exploration and development activities.
ARR also received its first reimbursement of over A$450,000 from the Wyoming Energy Authority, part of a larger $7.1 million state grant aimed at de-risking the project through exploration drilling and environmental studies. This funding underscores strong local government support for the project’s strategic importance.
On the corporate front, the company bid farewell to founding board member Geoff Hill, welcoming Hugh Keller as a new Non-Executive Director. Keller brings extensive legal and governance expertise, enhancing the board’s capacity to navigate complex commercial and regulatory environments. Additionally, CEO Chris Gibbs joined the board of Godolphin Resources, reflecting ARR’s strategic investment interests in complementary critical minerals projects.
Looking Ahead
ARR’s recent licence to explore granted by the Wyoming Department of Environmental Quality enables test mining and bulk sampling at Halleck Creek, a critical step towards pilot plant feedstock procurement and process optimisation. The company is advancing a Pre-Feasibility Study (PFS) and refining resource estimates in partnership with Odessa Resources, aiming to unlock further value and solidify Halleck Creek’s status as a cornerstone of North America’s rare earth supply chain.
With its combination of high-grade resources, strategic partnerships, and government backing, American Rare Earths is well-positioned to contribute meaningfully to U.S. critical mineral independence, a priority that continues to gain bipartisan support amid global supply chain uncertainties.
Bottom Line?
American Rare Earths is building critical momentum, but the next challenge lies in translating resource potential into operational reality.
Questions in the middle?
- How will BMO Capital Markets’ advisory role influence ARR’s capital raising and partnership strategies?
- What are the timelines and expected outcomes for the upcoming Pre-Feasibility Study at Halleck Creek?
- How will the pilot plant operations at the Western Research Institute impact processing efficiencies and project economics?