American Rare Earths launches development of Cowboy State Mine in Wyoming

Understanding rare earth elements

Although composed of 17 metallic elements that are not scarce in the Earth’s crust, these materials are rarely found in concentrations high enough to make mining and extraction economically worthwhile.

“The specific rare earth elements that we are working with are called neodymium and praseodymium,” Wyoming Rare (USA) Inc. President Joe Evers said. “… They’re often referred to as magnet metals. They’re super strong, which makes them really important industrial inputs in the U.S. economy.

“For instance, in the defense industry, things like fighter jets and submarines have a huge amount of rare earths that are used in different facets, from navigation to the joints of a fighter jet’s exhaust — that’s what makes these magnets pretty special.”

The elements also serve vital functions in various modern technologies, ranging from cellphones and laptops to advanced communication systems.

“They’re significant, and while we don’t see them and interact with them every day, they’re components in the things that we do interact with every day,” Evers said. “So they’re significant really, in the way that our society interacts with technology and how we want everything to be small, competitive and easy to move around. That’s where these rare earth minerals come into play and the reason that their extraction is becoming increasingly prioritized in the U.S.”

On Feb. 20, Wyoming Rare (USA) Inc. announced a significant metallurgical discovery at its Halleck Creek Rare Earths Project in Albany County, showcasing an upgrade of 10 times the original in rare earth concentration.

A recent test revealed the increase from the mined ore, enabling the elimination of 93.5% in early processing. Only 6.5% of mined ore will require further refining, significantly reducing processing costs.

WRI provides strategic location, expertise

In December, Wyoming Rare (USA) Inc. announced its securement of a facility at the Western Research Institute (WRI), located just north of the city of Laramie. WRI is a multi-million dollar not-for-profit research organization known for its work in advanced energy systems, environmental technologies and materials research and technologies.

“(The partnership with WRI began because of) our relationship with the University of Wyoming and their knowledge around the Western Research Institute,” Evers explained. “An initial meeting with their team was facilitated by the UW School of Energy Resources in Laramie. That, paired with a matching grant where we put up money and the Wyoming Energy Authority invested along with us. That was another reason why the Wyoming Research Institute made a lot of sense.”

The facility will serve as a centralized hub, housing all drill core and assay samples.

“We’ve been working with American Rare Earths to partner to help develop their mining operations and get them up and going for rare earth exploration,” WRI Vice President of Sustainable Emerging Technology Group Justin Martin said. “WRI is going to host American Rare Earths. We’re helping to provide a location operation and some expertise in developing their mining operations for pilot development or demonstration unit development, so that they can prove out the technologies to de-risk operation development at the mine site.”

The site will eventually accommodate the future construction of a pilot plant that will assist in the development and testing of samples.

“If you take a step back, the location in Laramie is really beneficial because it’s so proximate to our potential mine site,” Evers said. “A lot of the testing that we do requires us to send the rocks off for assays and different testing on it. Oftentimes, we sent it across international borders, up to Canada or out of state to Nevada. So having this ability to bring material back to Laramie is really beneficial for the project because it’s so proximate to Halleck Creek.”

The facility also will house a collection of geological core samples accessible to the company’s geology team.

“WRI has a long history in pilot development, as well as chemical expertise,” Martin said. “So we’re going to help in the pilot scale development and scale operations, as well as the chemical knowledge to help ensure proper, efficient process separation. We also have several chemical engineers with process knowledge, so that we can kind of help optimize the process design for them, for their facilities.

A key focus is beneficiation, the process of upgrading the ore by concentrating the rare earth elements. This involves crushing, grinding and gravity separation, using only water for physical separation.

High-grade assay

Wyoming Rare (USA) Inc. announced significant resource updates for the Halleck Creek Project on Jan. 29. The new Joint Ore Reserves Committee (JORC) compliant resource estimate has increased the total mineral resource to 2.63 billion tonnes, marking a notable 12.2% increase from previous estimates.

The update positions the mine as one of North America’s largest rare earth deposits and underscores the company’s commitment to unlocking its potential. The project’s favorable location on Wyoming state land facilitates a more efficient permitting process, expediting development timelines.

The area’s advantageous geology and near-surface mineralization indicate a low-cost open-pit mining operation is feasible. Ongoing metallurgical tests continue to confirm efficient processing capabilities for rare earth elements.

The resource advancements align with U.S. initiatives aimed at achieving domestic critical mineral independence, thereby reducing reliance on imports and bolstering economic growth and national security. The updated resource model and mining plans are expected to enhance the project’s economics significantly.

High-grade data from the update will be incorporated into an upcoming scoping study.

First reimbursement

American Rare Earths secured its first reimbursement of more than $304,000 from a grant awarded by the Wyoming Energy Authority.

This reimbursement is part of a larger $7.1 million grant approved last June, designated to advance several key initiatives such as exploration drilling, environmental studies and pre-feasibility assessments for the Halleck Creek Project.

American Rare Earths CEO Chris Gibbs stated in a news release: “We are excited to receive this first reimbursement, which represents a crucial step in executing our plans. This funding will significantly aid our efforts to de-risk the Cowboy State Mine and help us achieve our 2025 goals. This reimbursement not only reflects our joint commitment to advancing this project but also underscores the potential of the Cowboy State Mine to contribute to Wyoming’s energy strategy. We look forward to continued collaboration and success.”

The successful acquisition of these funds marked a crucial milestone, emphasizing the company’s commitment to effectively managing the project while working toward achieving essential objectives in 2025. The funds are instrumental in refining project feasibility and exploring avenues for sustainable mining practices.

EXIM financing support

In conjunction with the reimbursement success, Wyoming Rare (USA) Inc. recently highlighted a significant development with the Export-Import Bank of the United States (EXIM).

EXIM is an arm of the U.S. government that is interested in financially assisting American business in areas of import and export.

The bank issued a nonbinding letter of interest indicating potential debt financing of up to $456 million. This pivotal financial backing is denoted for constructing and executing phases of the Cowboy State Mine, reinforcing the entire initial capital expenditure, an important step toward establishing a competitive domestic supply chain in the rare earth sector.

“What we’ve seen as of late is the bank taking a more active role in helping to move some of these processes and mining back to the United States so we can take away some of the dominance that China has in this market,” Evers said. “In order to build a project like this, it takes a lot of capital and a lot of dollars to build a big project. It’s sometimes hard to forecast what the prices of these rare earth elements will be in the future, which makes it difficult to put a loan onto a project. This letter is the EXIM bank saying, ‘If you can continue to progress this project and show us how you will do that, the EXIM Bank will potentially step in to underwrite and loan on the project.’”

The EXIM financing package aligns perfectly with the Make More in America Initiative, aimed specifically at bolstering domestic production of critical materials. The initiative underscores the United States’ overarching goal of reducing reliance on foreign supply chains, particularly in resource-dependent industries vulnerable to geopolitical tensions.

The financing from EXIM not only enhances the credibility of the Halleck Creek Project, but also positions it strategically within the global rare earth market.

“If we can show that we warrant an investment, it will help attract partners, de-risk it, and it allows us to say we have this big opportunity to facilitate the building of the project,” Evers said. “These types of projects are really hard to finance through traditional banks, just because of some of the uncertainties around the market. So having the EXIM bank step in takes a big uncertainty and turns it into a positive.”

Local engagement

American Rare Earths indicates a proactive stance on community engagement with Wyoming stakeholders. The company’s establishment of Wyoming Rare (USA) Inc. has marked a notable beginning of extensive discussions with local business communities, ranchers and elected officials.

The inclusive approach during the first board meetings held during early September in Cheyenne demonstrated a commitment to collective growth and development, facilitating contributions from a diverse range of stakeholders.

“I was pretty blown away by the amount of people that showed up and the amount of people that drove quite a ways to come and introduce themselves and get to know the team a little bit,” Evers said. “I think thus far, folks seem to be supportive, curious and interested in what it could mean for the state finding a new and important type of mining that allows Wyoming to leverage, in my opinion, the benefits of a knowledgeable workforce, knowledgeable regulators, knowledgeable decision-makers and elected officials into this.”

The meaningful engagement fostered partnerships aimed at improving Wyoming’s economy by bolstering local job creation and sourcing materials domestically. Through outreach initiatives, American Rare Earths is generating local enthusiasm for the Cowboy State Mine at Halleck Creek, elevating it as an attractive prospect for investment and collaboration while leveraging Wyoming’s rich mining history and workforce expertise.

Impacts for Albany County

The mine is less than 200 acres, leaving a relatively small footprint. But it is projected to have a positive effect for Albany County.

“So the mine site itself, in relative terms, is pretty small. I grew up in Sheridan, Wyoming, around some of the coal mines in Campbell County and really marveled at the size.” Evers said. “... I think from an economic standpoint, it could be pretty interesting because Albany County has severance taxes and ad valorem taxes that are collected from extractive industries in the county. … I think the tax revenue that goes to the county is the most potentially impactful thing from a positive side.”

A glimpse at history

According to an American Rare Earths report, the history of rare earth elements exploration in Wyoming traces back to the uranium prospecting rush during the 1950s. Although some occurrences of rare earth elements, thorium and uranium were found in pegmatite bodies throughout the Laramie Range during this period, robust exploration and mining activities did not materialize.

In 2010, Blackfire Minerals initiated a modest exploration effort by acquiring state mineral leases at Halleck Creek, but relinquished the leases in 2011 due to unfavorable market conditions. The project was dormant until 2018, when Zenith Minerals, an Australian mining firm, revitalized the initiative by restaking the claims formerly held by Blackfire, along with additional federal land claims.

American Rare Earths stepped in during 2020, acquiring the mining claims and state leases, subsequently securing Wyoming’s state mining leases in June 2021. This acquisition marked a significant pivot toward a renewed commitment to exploration and harnessing rare earth resources within the state.

American Rare Earths continues to expand its land package, successfully staking 362 unpatented federal lode claims across 8,164 acres, solidifying its positioning as a prominent player in Wyoming’s rare earth mining industry.

What’s next?

The mine is poised for significant advancements as it embarks on a strategic development process focused on the Halleck Creek Project. The initial phase includes comprehensive metallurgical test work, updated resource modeling and meticulous mine planning aimed at facilitating a streamlined permitting process.

By the end of the year, the team anticipates finalizing a pre-feasibility study, which will confirm both the economic and technical viability of the mine.

In tandem with these efforts, exploration will expand across the Halleck Creek district, where 84% of surface area remains uncharted. A rigorous field exploration is crucial in positioning the Halleck Creek district as a key strategic asset, particularly in alignment with U.S. goals for critical mineral independence and supply chain security.

Moreover, the project emphasizes the importance of environmental responsibility, with ongoing baseline environmental monitoring and related studies set to facilitate a timely permitting process for the project’s approvals.

To further enhance their efforts, collaboration with BMO Capital Markets are underway to identify U.S.-based investment and funding opportunities, establishing strong strategic partnerships essential for the project’s success. With these initiatives, the mine is on track to become a significant player in the mining landscape, contributing to local, regional and national resource needs.