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American Rare Earths (ASX:ARR) acquires new rare earths project in U.S.

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ASX:ARR      MCAP $157.8M
20 May 2021 13:40 (AEST)

La Paz project. Source: American Rare Earths

American Rare Earths (ARR) has acquired a new, high-grade rare earth elements (REE) project in Nevada, U.S.

The Searchlight REE Project is wholly owned by ARR’s U.S. subsidiary, Western Rare Earths (WRE), and comprises 80 unpatented mining claims that cover a 656-hectare area.

American Rare Earths staked these mining claims earlier this year after historical data revealed high grades of rare earths, especially heavy REEs and magnet-associated REEs.

The company also conducted a geological review and sampling program to confirm historical rare earth results. Samples included 14,800 parts per million (ppm) total REEs, 940ppm HREEs and 3320ppm magnetic REEs.

“The company is delighted to be adding the high-grade Searchlight REE Project to its portfolio of rare earths assets as a compliment to the company’s existing flagship La Paz Rare Earths Project in Arizona,” Managing Director Keith Middleton said.

Significantly, the Searchlight REE Project lies within a precious metal mining district and can be found just 32 kilometres west of the only operating and processing rare earths mine in the U.S.

“In addition, the project’s proximity to the only integrated operating and processing rare earths mine in the U.S., the Mountain Pass mine, and the project’s unique positioning within the friendly mining jurisdiction of the State of Nevada, further highlights the project as a strategic acquisition for the company,” he added.

The company’s subsidiary is planning an exploration program which will include surface geological sampling and mapping. This work will help to locate more higher grade veins at surface as well as targets for future drilling.

ARR’s shares are up 8.7 per cent and trading at 7.5 cents at 12:49 pm AEST.

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