American Rare Earths Ltd · ASX:ARR
American Rare Earths — Technical Presentation (March 2024)
26 slides from American Rare Earths's technical presentation, Mar 19, 2024
Slide 1: Scoping Study Presentation
American Rare Earths For personal use only “Pioneering the future of clean energy” Scoping Study Presentation March 2024 (ASX: ARR | ADRs - OTCQX: AMRRY | Common Shares - OTCQB: ARRNF)
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements Disclaimers Competent Person Statement This presentation contains forward-looking statements that involve subjective This work was reviewed and approved for release by Mr Kelton Smith (Society of Mining Engineers #4227309RM) who is judgement and analysis an
Slide 3: Cautionary Statements
Cautionary Statements ARR has published the study in its entirety on the Halleck Creek project tab at REEshore.com For personal use only The Study referred to in this announcement is a preliminary technical and economic study of the potential viability of the Halleck Creek Rare Earths project by dev
Slide 4: Corporate Snapshot
Corporate Snapshot 12 Month Share Price Performance (ASX:ARR) Share Price (market close A$0.29 cents 18/03/2024) For personal use only Shares Outstanding 493.4 million Market Cap (18/03/2024) A$143 million 1 Cash on Hand A$18.3 million Invested Financial Assets 2 A$5.2 million (31/12/2023) Managemen
Slide 5: Investment Overview
Investment Overview • Domestic sourcing of magnet metals have strategic importance for US. For personal use only • Forecasted deficit for magnet metals. • Flagship deposit test results indicate: • Low-cost, conventional processing • Scalable development within homogenous rare earth mineralisation •
Slide 6: Phase 1 Scoping Study Key Outcomes
Phase 1 Scoping Study Key Outcomes The Phase 1 scoping study based on a 20+year cash flow demonstrates Halleck Creek as a world-class REE project. For personal use only 22.5% US$380 Million Initial Capex +20% 2.9 Years Direct Leach IRR contingency Payback (no cracking) 85% of Phase 1 Scalable Expans
Slide 7: Geologic Characteristics Offer Best of Both Worlds
Geologic Characteristics Offer Best of Both Worlds Conventional Hard Deposit Comparison Halleck Creek Ionic Clay For personal use only Rock Location Tier 1 Tier 1 Sovereign Risk Grade 4-5 % TREO1 ~6% TREO 0.07 % Low Penalty Elements (U / Th)2 ü û ü Processing Tank Leaching Acid Bake / Cracking In-Si
Slide 8: Halleck Creek Project Overview - High-Grade Resource with Substantial Scale
Halleck Creek Project Overview* - High-Grade Resource with Substantial Scale Halleck Creek, 1000 ppm COG 2400 For personal use only 1900 Halleck Creek, 3000 ppm COG Tonnage (Mt) 1400 Halleck Creek, 3500 ppm COG Prairie Lake Charley Creek Halleck Creek, 4000 ppm COG 900 Caldeira Project 400 Carina Mo
Slide 9: Preliminary Flowsheet
Preliminary Flowsheet • Up to 86% of Allanite shown to be liberated from in-situ rock mass during crushing and grinding • Up to 93% of non-REE gangue material can be separated from REE bearing allanite. For personal use only • Physical separation methods shown to increase grade by approximately 10X
Slide 10: Halleck Creek Project Overview
Halleck Creek Project Overview (100% owned) Potential to be the largest, low-cost rare earth Deposit in North America For personal use only • LOM average Cost (USD/kg NdPr Equivalent) = $38.38/kg v $50/kg China Northern RE • Heavies (Tb, Dy) 2% • Cowboy State Mine shown in red border, limited to 400
Slide 11: Mining Methods
Mining Methods Low Risk Open Pit Mining in a Favourable Mining Jurisdiction For personal use only • Mine plan designed on Wyoming State Mineral Leases, expedited permitting. • Ore grade material outcrop with estimated strip ratio of 0.03:1 • Low-cost open-pit mining well suited to homogenous TREO gr
Slide 12: Infrastructure
Infrastructure • Close to infrastructure, a highly skilled workforce and the University of Wyoming. • Located in the Central Laramie Mountains, between Laramie and Wheatland. For personal use only • Interstate and railroad access via existing state roads. • Burlington Northern Sante Fe mainline rail
Slide 13: Separated / Finished Products
Separated / Finished Products For personal use only Recovery Avg Annual Production Pricing OpEx Pricing (%) (mt) (US$/kg) (US$/kg) NdPR Oxide 64% 1,529 $ 91.00 $ 38.38 Tb Oxide 70% 17 $ 1500.00 $ 632.56 Dy Oxide 67% 91 $ 400.00 $ 168.68 SEG Concentrate 70% 383 $ 10.00 $ 4.22 La 69% 1,486 $ 2.00 $ 0.
Slide 14: Excellent Project Economics and Estimated Financial Returns
Excellent Project Economics and Estimated Financial Returns Phase 1 shows a pre-tax IRR of 23% (3Mtpa) with NPV $505 - $674 Milion) For personal use only Before Tax Financials Unit Value Free Cash Flow USD 2,081.1 m NPV at 8% 673.9 m NPV at 10% 505.1 m IRR (%) % 22.5 Payback Period Yr 2.9 Total Init
Slide 15: 3Mtpa – Base Case and Sensitivities
3Mtpa – Base Case and Sensitivities % of Base Case Change NdPr_Eq Price After Tax NPV at 10% After Tax IRR Before Tax NPV at 10% Before Tax IRR (%) (USD/kg) (US$ M) (%) (US$ M) (%) 60% 54.60 70 12.0% 70 12.0% 80% 72.80 249 16.8% 288 17.6% For personal use only 100% 91.00 430 21.1% 505 22.5% 110% 100
Slide 16: 3Mtpa – Base Case Sensitivities
3Mtpa – Base Case Sensitivities Processing CAPEX and NdPr Pricing are key economic drivers Sensitivity -40%/+20% Pre-Tax IRR For personal use only Pre-Tax 3Mtpa Case IRR: 22.5% Processing CAPEX 19.0% 34.7% NdPr Price 12.0% 27.1% Processing Cost 19.9% 27.4% Mining Cost 22.0% 23.6% High Low 16 AMERICA
Slide 17: 6Mtpa – Expansion Case Sensitivities
6Mtpa – Expansion Case Sensitivities Sensitivity -40%/+20% Pre Tax NPV at 10% Pre Tax 6Mtpa Case NPV For personal use only NdPr Price 141 1310 Processing Cost 713 1325 Processing CAPEX 777 1207 Mining Cost 876 1010 Low High 17 AMERICAN RARE EARTHS | March 2024
Slide 18: Halleck Creek Development Strategy
Halleck Creek Development Strategy Three-phased parallel path to permitting For personal use only Phase 1: • COMPLETED -> scoping study Q1 2024 • Pursuing test mine authorisation from the State of Wyoming (application submitted). • Test mine and piloting. • Low-cost path to de-risking project. Phase
Slide 19: Strong Partners
Strong Partners For personal use only US Department of Energy US Department of Defense Advanced Research US Department of Energy Critical Materials Institute Projects Agency’s EMBER program (CMI) 19 AMERICAN RARE EARTHS | March 2024
Slide 20: Appendix
For personal use only Appendix
Slide 21: Halleck Creek Project Overview Source Material
Halleck Creek Project Overview Source Material • Enova Mining For personal use only • Texas Mineral Resources • Imperial Mining Group • Appia Rare Earths and Uranium • Namibia Critical Metals • Nuinsco Resources • Hastings Technology Metals • Aclara Resources, Penco • Meteoric Resources • American R
Slide 22: About American Rare Earths
About American Rare Earths We are committed to developing our projects featuring sustainable practices, inclusive principles and leading technologies to support the United States' national security and economic transformation goals. For personal use only • Largest ASX-listed portfolio of strategic r
Slide 23: Halleck Creek Updated Mineral Resource Estimate
Halleck Creek Updated Mineral Resource Estimate* Using the 1,000 ppm TREO cut-off grade the estimated in situ resource estimate at Halleck Creek is 2.34 billion tonnes (Gt) with an average grade of 3,196 pm (0.32%) TREO. This represents an increase of 64% in For personal use only in situ tonnes comp
Slide 24: 2023 vs 2024 Grades and Tonnages
2023 vs 2024 Grades and Tonnages* 3.00 4428 4500 For personal use only 4330 2.50 4150 2.50 2.34 3957 4000 2.09 4047 2.00 3780 Average grade (TREO ppm) 1.85 3857 1.74 3653 1.67 1.69 Tonnes (Bt) 3693 1.50 1.43 3425 1.44 3500 3534 1.25 1.11 1.13 3196 3309 1.00 0.95 3047 0.72 0.65 3000 3015 0.50 2928 0.
Slide 25: Rare Earth Distribution
Rare Earth Distribution For personal use only Based on all drilling data to date 25 AMERICAN RARE EARTHS | March 2024
Slide 26: Contact
Contact For personal use only Media and Investor enquiries: Jane Morgan P: +61 (0) 405 555 618 E: jm@janemorganmanagement.com.au .
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