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Thursday, Jul 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Rare Earths

Wyoming awards American Rare Earths over C$9.7M to advance Cowboy State Mine

The operation holds nearly 7.5 million tonnes of rare earth oxides like neodymium and praseodymium

Wyoming awards American Rare Earths over C$9.7M to advance Cowboy State Mine
Company's new field truck on site in Wyoming. Photo credit: American Rare Earths

Magnet metal miner American Rare Earths (ASX: ARR) (OTCQX: ARRNF) has secured a sizeable grant from authorities in Wyoming to advance its Cowboy State Mine at Halleck Creek. It holds vast quantities of rare earths like neodymium and praseodymium.

The state of Wyoming, in partnership with the University of Wyoming’s Energy Resources Council and Wyoming Energy Authority, will provide the company with over C$9.7 million. Funds will be dispersed over a three-year period.

American Rare Earths could potentially reap significant benefits from the American military, which needs rare earths and critical minerals for various technologies. An F-35 stealth fighter jet, for example, requires 850 pounds of rare earth elements to construct.

“The Department of Defense is focused on the entire rare earth supply chain,” Pentagon spokesman Jeff Jurgensen told Cowboy State Daily on Jun. 23.

Wyoming is known for having extensive rare earth resources and hosts other companies involved with mining them like Energy Fuels Inc. (NYSE American: UUUU) and Rare Element Resources Ltd. (OTCQB: REEMF).

“The funding further validates the direction the company has taken and gives us even greater optimism around the project,” American Rare Earths Chairman Richard Hudson said. “We are excited to contribute to the state’s economic and environmental sustainability through this strategic initiative.”

Chief executive Donald Swartz spoke about the mine in a recent interview with Proactive Investors.

Read more: U.S. Gold gets nod from Wyoming Environmetal regulators for reclamation bond

Read more: U.S. Gold acquires another crucial permit on path to production at CK mine

Mine will produce zircon too

In addition to rare earths, the Cowboy State Mine is expected to churn out significant quantities of the mineral zircon and zirconium — a metal extracted from it.

Zirconium is most needed for nuclear applications, particularly cladding in fuel rods that surround uranium pellets. It is an essential component in certain electronics, jet engines and space shuttles too.

Although Wyoming’s major coal industry is facing challenges, the state is a significant influence in the American mining industry. It produces more uranium than any of the other stars on the spangled banner.

The state will be enhancing its stature in the gold mining industry soon as well. U.S. Gold Corp. (Nasdaq: USAU) is currently wrapping up the permitting process at Wyoming’s CK Gold Project before ensuing production.

The mine will generate an estimated US$75 million in taxes and royalties for the state of Wyoming during its lifespan. It holds over 1.5 million gold equivalent ounces and 248 million pounds of copper.

 

U.S. Gold is a sponsor of Mugglehead news coverage 

 

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