TORONTO, May 10, 2022
/CNW/ - Aclara Resources Inc. ("Aclara" or the
"Company") (TSX: ARA) is pleased to provide an update on its
corporate strategy following the withdrawal of its application for
an environmental impact assessment ("EIA") of the Penco
Module (the "Project") located in Chile. The updated strategy aims to i)
position the Company to deliver a more robust EIA application, ii)
strengthen and expand relationships with local stakeholders, and
iii) prioritize exploration activities to define new potential
modules. The Company has decided to postpone the advancement of the
feasibility study on the Project until it has additional clarity on
the permitting process.
Aclara's CEO, Ramon Barua,
commented: "We are pleased to announce a revised strategy for
Aclara that will continue advancing the Project while targeting new
ionic clay deposits hosted within our claims. The recent withdrawal
of the EIA application is expected to result in a two-year delay to
the anticipated first production date of the Project and we intend
to maximize the use of that additional time. First, we will improve
on our environmental baseline and refile the EIA application as
soon as possible; second, we will prioritize enhancing our
relationship with our local stakeholders; third, we will optimize
our metallurgical process; and, last but not least, we will seek to
find more ionic clays in other locations to actively pursue our
goal of converting Aclara into a multi-module company. Our
strategy, combined with the competitive advantage of owning an
ionic clay deposit with unique characteristics, an environmentally
friendly metallurgical process and the robust demand behind the
coveted rare earths that our planet needs for advancing
decarbonization initiatives, will provide the pillars that support
Aclara as a successful, environmentally sound and responsible rare
earths company."
Revised EIA Application
The Company is advancing a revised and more robust EIA
application. The Company has retained a team of environmental
consultants and other advisors from well renowned institutions in
Chile, including Universidad de
Chile, FerradaNehme, Gestión
Ambiental Consultores, Teco, among other specialists in flora and
fauna. The main focus will be directed at completing baselines
studies relating to flora and fauna to address the issues raised by
the Environmental Assessment Authority (the "SEA") during
the original EIA process. As part of the new process, the Company
intends to engage in closer communications with the SEA and other
relevant authorities to agree on key evaluation metrics as well as
protection and compensation measures. The Company will use the work
completed as part of the original EIA to accelerate the completion
of the studies and aims to file a revised EIA application during
the second quarter of 2023.
Social License
The Company has defined a thorough plan to increase its local
presence, to enhance local communities' perception of the Project,
and to materially increase its social contribution activities that
both benefit and are desired by the local community. The Company is
fortifying its local team by hiring locally based senior executive
focused on corporate affairs and engaging a local communication
firm to better connect with local stakeholders.
Exploration
The Company has increased its exploration budget from
US$5.4 million to US$6.2 million in order to undertake a more
aggressive drilling plan and schedule.
The Company has incorporated a new brownfield exploration area -
"Alexandra Poniente" - as part of the Project, which offers clear
potential to increase the resource base of the Project. Exploration
results are expected at the beginning of Q3 2022.
In an effort to define potential new modules, the Company will
be carrying out drilling campaigns in two new areas - "Veronica"
and "Petronila" - and expects to announce exploration results
towards the end of 2022. The drilling campaigns are expected to
consist of 10,050 metres distributed across 335 drill holes.
Feasibility Study and Pilot Plant
The Company has decided to postpone engineering activities in
connection with the feasibility study until the permitting process
is more advanced. The engineering team will shift its focus to
delivering the engineering modifications needed to align with the
permitting process.
The Company is also currently assessing change of its approach
to the pilot plant, from it being contracted as a service to it
being owned by the Company. Piloting activities were programed to
be limited in scope, however, the new timeline offers an
opportunity to enhance the program by building the plant in-house.
This strategy will allow Aclara to own a plant to continue
improving its recoveries and flowsheet. The new budget associated
with this strategy is under review and is expected to be reviewed
by the Board in August 2022.
Updated Budget
While the Company is maintaining the total amount of its budget
for 2022 at US$25.7 million, it will
be reallocating resources with a reduction in engineering expenses
and a commensurate increase in its exploration efforts. The key
aspects of the updated budget are detailed below:
- Activities in connection with the Penco Module: US$9.3 million
-
- Engineering and piloting: US$5.3
million
- Brownfield exploration and infill drilling: US$1.4 million
- Permitting and ESG-related expenditures: US$2.1 million
- Surface land purchase and mining concessions: US$0.4 million
- Exploration and mining concessions in connection with potential
new modules: US$6.2 million
- Administrative expenses, personnel and general corporate
purposes: US$10.2 million
Key Milestones / Targets for the Penco Module
As a result of its updated corporate strategy, the Company has
also updated the expected milestones and targets relating to the
development of the Project, which are as presented below:
- EIA Filing: Q2 2023
- EIA Approval: Q3 2024
- Feasibility Study Filing: Q1 2025
- Construction: Q1 2025
- Production: H1 2026
About Aclara
Aclara is a development-stage rare earth mineral resources
company located in Chile. Aclara
is initiating the development of its resources through a project
called the Penco Module (the "Penco Module"), which covers a
surface area of approximately 600 hectares and which has ionic
clays that are rich in rare earth elements. Aclara is currently
focused on the development and on the future construction and
operation of the Penco Module, which will aim to produce a rare
earth concentrate through a processing plant that will be fed by
clays from nearby deposits. Aclara's unique extraction process
offers several advantages such as: no blasting, crushing or milling
required; no tailings dam; minimal water consumption due to a high
level of water recirculation; amenable leaching with a fertilizer;
and no radioactivity.
Forward-Looking Statements
This news release contains "forward-looking information"
within the meaning of applicable securities legislation, which
reflects the Company's current expectations regarding future
events, including statements with regard to the permitting process,
the revised EIA application, on-going and future discussions and
consultations with relevant authorities and advisors, advancing the
exploration and development of the Penco Module, the exploration of
potential new modules, the completion of a feasibility study on the
Penco Module, plans and strategies, and general financial position
matters and funding related to the Company, and key milestones and
targets relating to the development of the Penco Module.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties, many of which
are beyond the Company's control. Such risks and uncertainties
include, but are not limited to risks related to operating in a
foreign jurisdiction, including political and economic problems in
Chile; risks related to changes to
mining laws and regulations and the termination or non-renewal of
mining rights by governmental authorities; risks related to failure
to comply with the law or obtain necessary permits and licences or
renew them; compliance with environmental regulations can be
costly; actual production, capital and operating costs may be
different than those anticipated; the Company may be not able to
successfully complete the construction and start-up of mines and
new development projects; risks related to mining operations; and
dependence on the Penco Module. Aclara cautions that the foregoing
list of factors is not exhaustive. For a detailed discussion of the
foregoing factors, among others, please refer to the risk factors
discussed under "Risk Factors" in the Company's annual information
form dated as of March 30, 2022 filed
on the Company's SEDAR profile. Actual results and timing could
differ materially from those projected herein. Unless otherwise
noted or the context otherwise indicates, the forward-looking
information contained in this news release is provided as of the
date of this news release and the Company does not undertake any
obligation to update such forward-looking information, whether as a
result of new information, future events or otherwise, except as
expressly required under applicable securities laws.
SOURCE Aclara Resources Inc.