Aclara Resources (TSX: ARA, OTC: ARAAF, FRA: JD1) is a rare earths company focusing on its development project located in Chile. Aclara managed to develop a breakthrough extraction process named Circular Mineral Harvesting. The company is early in the process and way ahead of other mining companies. 

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The concessions owned by Aclara span a vast area of 451,985 hectares in Chile's Maule, uble, Biobo, and Araucana regions. The Penco Module, which covers 600 hectares and is being built by Aclara, is located about 15 kilometers from Concepción, Chile's second-largest city. The company is pushing forward an updated and more substantial EIA application. The completion of baseline studies on flora and fauna will be the main focus in order to address the concerns voiced by the Environmental Assessment Authority (the "SEA") during the initial EIA process.The company intends to submit a revised EIA application in the second quarter of 2023 and will use the work completed as part of the original EIA to speed up the completion of the studies. On December 1, 2022, Aclara made a new Resource for the Penco Module. A total of 5,298 m from 175 new drill holes were finished as a result of drilling campaigns conducted in 2021 and 2022, and they were added to the updated resource. Through this work, a new resource area named Alexandra Poniente was defined, and the Mineral Resources in the Project area were also increased.
The results of the exploration and infill drilling program resulted in:

•  Measured, Indicated, and Inferred Mineral Resources have been added at Alexandra Poniente, a new location inside the Project area to the north-west of Alexandra Oriente. 
• The transformation of Luna, Victoria Norte, Alexandra Oriente, Victoria Sur, and Maite's inferred mineral resources into measured and indicated mineral resources.

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Circular Mineral Harvesting Process

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The Circular Mineral Harvesting process was created by Aclara Resources and doesn't require the use of explosives, crushing, or milling, doesn't leave behind any liquid waste, and doesn't even require a tailings dam. The procedure has an environmental component because it recycles 99% of its primary reagent and about 95% of the water it uses (a common fertilizer). The fact that it doesn't leave any holes in the ground, that the company will replenish the clays extracted back in the pits, and that all the impacted land will be replanted with native species are additional eco-friendly features.

In a sustainable, traceable, and environmentally friendly manner, Aclara will produce rare earths, which are essential components in the fight against climate change. We will revolutionize a sector known for its detrimental effects on the environment by extracting rare earths in a radically different way. This will ensure a supply of the valuable minerals that will enable the fight against climate change. This project is made possible by numerous innovations created through collaborations between the company and academia, with notable contributions from the University of Concepcion and the University of Toronto (Canada) (Chile).

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REEs Will Witness Strong Demand from EVs and Wind Turbines

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Permanent magnets, which are necessary for EV motors and wind turbines, depend on rare earth elements. Copper is a key component of all electricity-related technologies, so copper and aluminum are essential for electricity networks. The energy sector is becoming a significant player in the mineral markets as the transition to a clean energy system is expected to significantly increase the demand for these minerals.

The energy sector is becoming a significant player in the mineral markets as the transition to a clean energy system is expected to significantly increase the demand for these minerals. Their share of total demand increases significantly over the following two decades to over 40% for copper and rare earth elements, 60-70% for nickel and cobalt, and nearly 90% for lithium in a scenario that achieves the goals of the Paris Agreement (as in the IEA Sustainable Development Scenario [SDS]).

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"As the world enters the electric revolution and looks for solutions to the climate crisis, Aclara will provide critical rare earths to ensure that EVs, wind turbines and other green technologies succeed and prevail.

We believe that the environment comes first, and our operations will reflect that commitment.

Our objective is to become a sustainable, independent, Western producer of heavy rare earths, enabling the transition to a cleaner, decarbonized planet."

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Share structure/Financials 

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Aclara Resources had its latest financial statements for the period ending September 30, 2022. The company holds a solid balance sheet, with $73M in cash and cash equivalents and has no debt. Over the last quarter, the company spent $1.1M in administration expenses, and $1.3M in exploration expenses. For the year 2023, Aclara has an overall budget for the year 2023 of US$ 25M, with a possibility to grow depending on exploration results, and the company targets to commence production at Penco Module in Q1 2026. 

Regarding the share structure, it consists in 162.6M shares total. Pelham Investments is the main stakeholder, detaining 36.7% of the company, followed by Hochschild Mining (20.0%). The management & board of directors have a smaller ownership as it represents 0.7% of the structure. The stock price is hovering around $0.50, and has a 52-week range variating from $0.25 to $1.53. 

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Bottom Line

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Aclara Resources (TSX: ARA, OTC: ARAAF, FRA: JD1) developed the  Circular Mineral Harvesting process that no other mining company can claim to have. The company is well funded with $73M in cash, has renowned shareholders and has a clear plan to start producing at Penco Module in Q1 2026. 

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*Aclara Resources is a client of First Phase Media Inc*

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