Aclara Resources unveils major rare earths deposit in Brazil: A game-changer for the Industry

This development is a watchword for industry players and investors alike, signaling exciting times ahead in the rare earths market.

Aclara Resources (TSX: ARA), a prominent South American rare earths developer, recently made a groundbreaking announcement regarding its Carina Module deposit in Goiás, Brazil. This development is not just a significant step for Aclara but also a potential game-changer in the rare earths industry, traditionally dominated by China.

A Treasure Trove of Rare Earths: The Carina Module

The Carina Module is a regolith-hosted ion adsorption clay deposit, and its inaugural resource estimation is staggering. It boasts 168 million tonnes of inferred material with a grade of 1,510 parts per million (ppm) in total rare earth oxides (TREO). Notably, this includes high concentrations of dysprosium (42.1 ppm) and terbium (6.9 ppm), alongside significant amounts of neodymium and praseodymium.

This estimation is based on comprehensive exploration, involving 1,630 metres of drilling, 201 auger holes, and 1,418 samples. The sheer size and grades of this deposit make it an exceptional addition to Aclara's resources.

A Strategic Asset in the Rare Earths Market

Rare earth elements are critical in manufacturing modern technologies like cell phones, computers, and green energy solutions. Western countries are particularly keen on securing supply chains for these elements outside of China's dominant sphere. With the Carina Module, Aclara Resources is positioning itself as a crucial player in diversifying the global supply of rare earths.

Economic and Environmental Advantages

The Carina Module is not just abundant in resources; it's also economically viable. Aclara reports an average net smelter return value of US$32.3 per tonne, using a cut-off value of US$7.4 per tonne. Moreover, the company emphasizes its commitment to environmentally friendly practices. The technology used for recovering rare earths, proven in Chile, minimizes cost and ecological impact.

Looking Ahead: Preliminary Economic Assessment and Further Exploration

Aclara is not resting on its laurels with the Carina discovery. The company plans to process samples from Carina's ionic clays in its Chilean plant, with a preliminary economic assessment (PEA) scheduled for January 2024. Additionally, Aclara is exploring further resources, with a reverse circulation drilling campaign already in progress, set to complete in Q2 2024.

Market Response and Future Prospects

Following this announcement, Aclara's stock saw a notable rise, climbing 7.5% to 43¢ in mid-day trading in Toronto, reflecting a market capitalization of $70.1 million. This positive market response mirrors the industry's recognition of the potential impact of the Carina Module.