Aclara announces initial resource estimate for Brazil rare earth project

South America-focused rare earth developer Aclara Resources (TSX: ARA) announced on Tuesday an inaugural mineral resource for its regolith-hosted ion adsorption clay deposit Brazil that is said to contain significant quantities of dysprosium (Dy), terbium (Tb), neodymium (Nd), and praseodymium (Pr).

The project - known as the Carina module - is estimated to contain 168 million tonnes of inferred material grading 1,510 ppm total rare earth oxide (TREO), containing an average Dy and Tb grade of 42.1 ppm and 6.9 ppm respectively.

This resource was estimated using the results obtained from 201 auger drill holes (1,630 metres) and 1,418 samples. It complements the 27.5 million tonnes of measured and indicated resources and 1.7 million tonnes of inferred resources at the Aclara's Penco module in Chile.

The average net smelter return value of the Carina module resource, based on company calculations, is US$32.30/t when using a cut-off value of US$7.40/t.

According to Aclara, the recovery of rare earths from its Brazilian project is fully compatible with the technology patented and successfully demonstrated on a pilot scale in Chile, which designed to minimize both cost and environmental footprint.

"The combination of its large size and attractive grades makes the Carina module an outstanding deposit of ionic clays and significantly increases Aclara's total resource base," Aclara CEO Ramon Barua stated in a news release.

The next step for the company is to produce samples by processing the project's ionic clays at its pilot plant in Chile. A preliminary economic assessment (PEA) is being targeted for completion in January 2024.

"The fact that we can apply our patented metallurgical recovery process, which combines competitive costs with superior environmental qualities, provides a promising backdrop for the upcoming preliminary economic assessment," Barua said.

On top of the PEA, the company is also pursing additional resources through the completion of a reverse circulation drilling campaign, which is already underway and scheduled to be completed in the fourth quarter of 2024.

Shares of Aclara Resources rose by 7.5% as of 12:10 p.m. in Toronto, for a market capitalization of $70.1 million.

THIS ARTICLE WAS FIRST PUBLISHED ON MINING.COM