Drilling Begins at Rare Element's Sundance Gold Project
Vancouver B.C. - Rare Element Resources Ltd. (TSX-V: RES) is pleased to announce that drilling has begun on the Sundance gold project, which lies on the same property as the Bear Lodge rare-earths project in Wyoming. Gold exploration activity during 2010 will be focused on: 1) more detailed definition of known gold-mineralized targets with in-fill drilling, and 2) discovery of higher grade gold mineralization. The vast majority of the drilling will be conducted on near-surface targets with oxide zone mineralization, especially Smith, Taylor, and Carbon (Figure 1). Work is being conducted under a permit that allows up to 200 acres of disturbance.
One reverse circulation drill rig will be used initially to test the gold mineralization with approximately 35-40 angle drill holes, ranging from 500 to 800 feet in depth. A second drill rig may be added later in the program. A few deeper holes will be drilled where geological conditions and target concepts warrant testing for high-grade gold mineralization.
Over the past 4 years, geologist John Ray managed exploration activities on the Sundance venture. Through his guidance the Sundance gold-focused exploration project was advanced significantly, and the geology, geochemistry, and geophysics of the entire project area are much better understood. During this time, the gold mineralized areas were expanded and better defined. A total of 45 holes were drilled in the venture area and another 13 holes into claims held outside the venture. Many of the holes contain long intervals of low-grade gold mineralization (Table 1). The outside claims have now been transferred to the Company. Previous metallurgical testing of gold project drill samples indicates excellent gold recoveries (70-80%) depending on the crush size.
"Rare Element recognizes the opportunity to define a significant low-grade gold resource with a relatively modest exploration program of in-fill drilling. With John Ray managing our gold project, we have a seasoned veteran guiding our gold exploration," stated Dr. Don Ranta, President.
The Company's evaluation effort on the gold system is planned to culminate in an NI 43-101-compliant resource estimate that is scheduled for completion early in 2011.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property. Gold exploration is being conducted as the Sundance project.
Rare-earth elements are key components of the green energy technologies and other high-technology applications. Some of the major applications include hybrid automobiles, plug-in electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent light bulbs, metal alloys, additives in ceramics and glass, petroleum cracking catalysts, and a number of critical military applications. China currently produces more than 95% of the 130,000 metric tonnes of rare-earths consumed annually worldwide, and China has been reducing its exports of rare earths each year. The rare-earth market is growing rapidly, and is projected to accelerate if the green technologies are implemented on a broad scale.
ON BEHALF OF THE BOARD
Donald E. Ranta, PhD, PGeo, President & CEO
For information, refer to the Company's website at www.rareelementresources.com or contact:
Mark T Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity.com.
Donald E Ranta, (604) 687-3520 don@rareelementresources.com
Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, which takes full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Figure 1 Bear Lodge Mountains Geology and Location Map of Gold Targets
Table 1 Examples of Recent Drilling Results on Sundance Gold Project
| Target | Interval (m) | Intercept (m) | Gold Assay (g/t) | |
| Sun-01 | Carbon | 1.5 - 48.8 | 47.3 | 0.56 |
| includes | 19.8 - 29.0 | 9.2 | 1.17 | |
| Sun-02 | Carbon | 1.5 - 39.6 | 38.1 | 0.40 |
| plus | 83.8 - 141.8 | 57.9 | 0.53 | |
| Sun-08 | Taylor | 0 - 126.5 | 126.5 | 0.44 |
| Sun-09 | Taylor | 0 - 175.3 | 175.3 | 0.44 |
| Sun-11 | Carbon | 7.6 - 54.9 | 47.3 | 0.46 |
| Sun-13 | Taylor | 3.0 - 44.2 | 41.2 | 0.49 |
| Sun-21 | Carbon | 0 - 155.5 | 155.5 | 0.66 |
| includes | 0 - 36.6 | 36.6 | 1.35 | |
| Sun-22 | (Carbon) | 0 - 45.7 | 45.7 | 0.66 |
| includes | 30.5 - 44.2 | 13.7 | 1.33 | |
| Sun-38 | (Carbon) | 1.5 - 86.9 | 85.4 | 0.47 |
| includes | 48.8 - 57.9 | 9.1 | 1.18 | |
| Sun-043 | Smith | 142 - 218 | 76 | 0.85 |
| Sun-044 | Smith | 138 - 94 | 56 | 1.05 |
| Sun-049 | Smith | 239 - 283 | 44 | 1.24 |
View News Release in PDF Format:
| File: | http://www.rareelementresources.com/i/pdf/2010-07-13_NR.pdf |
| 203 KB, approx. 39 seconds at 56.6Kbps |
Rare Element Makes Progress with Government Affairs Program
Rare Element has instituted a series of informational meetings and presentations, including a meeting with Wyoming Governor Freudenthal on May 20. Additional meetings were held with the Director of Wyoming's Department of Environmental Quality, and with the state directors and key local representatives of US Senators Michael Enzi and John Barrasso and Congressman Cynthia Lummis, all from Wyoming. A meeting was also held with Congressman Michael Coffman of Colorado, who has introduced into the House of Representatives two pieces of legislation that support the redevelopment of a U.S. rare-earths industry. The Company has made informational presentations to the Wyoming Geological Association on May 21, to Crook County government leadership including the mayors of Sundance, Hulett, and Moorcroft, the chairman of the Crook County Commission, an Area State Representative, and representatives of the U.S. Forest Service on June 15.
Wyoming State Senator Jim Anderson of Glenrock, who recently visited China and is keenly aware of America's critical need to develop a domestic source of rare earth elements for defense, clean energy, and technology applications, said, "The Bear Lodge Project has become one of my top three important projects statewide. Its success will help America strike a blow for independence in rare earth element production and benefit Wyoming immensely in many ways."
Rare Element has also made presentations to other key members of Crook County's leadership, key members of Wyoming's Legislature, the Wyoming Mining Association, and the Northeast Wyoming Economic Development Coalition (NEWEDC). Linda Harris, the Executive Director of NEWEDC in Gillette, believes the "Bear Lodge Project will actually enhance Sundance by providing a long-term source of skilled, high tech, safe and long-time sustaining jobs. Wyoming has so many unique attributes like Devil's Tower, Yellowstone, the world's largest coal deposits -- now we have a new jewel in Crook County. Bear Lodge is very exciting for Crook County's future and what it will give back to the communities there and to America."
"We are highly encouraged with the progress of this government relations program and the important guidance it has already produced for us," stated Dr. Don Ranta, President of Rare Element. "With our growing resource base, the planned completion of a scoping study later this summer, and the excellent human and physical infrastructure available to us in northeast Wyoming, our confidence in the ultimate success of the Bear Lodge Project continues to grow."
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property.
Rare-earth elements are key components of the green energy technologies and other high-technology applications. Some of the major applications include hybrid automobiles, plug-in electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent light bulbs, metal alloys, additives in ceramics and glass, petroleum cracking catalysts, and a number of critical military applications. China currently produces more than 95% of the 130,000 metric tonnes of rare-earths consumed annually worldwide, and China has been reducing its exports of rare earths each year. The rare-earth markets are growing rapidly, and are projected to accelerate if the green technologies are implemented on a broad scale.
ON BEHALF OF THE BOARD
Donald E. Ranta, PhD, PGeo, President & CEO
For information, refer to the Company's website at www.rareelementresources.com or contact:
Mark T Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity.com.
Donald E Ranta, (604) 687-3520 don@rareelementresources.com
Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, which takes full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Drilling Begins at Rare Element's Bear Lodge Rare-Earths Project; Stock options granted
One core drilling rig is now on the project site and will be used to test the Bull Hill area REE targets (Figure 1). A second drill rig is expected to arrive soon. Testing of the REE targets will require approximately 30-40 angle drill holes generally with depths of 400 to 700 feet. Additional testing of the Whitetail Ridge targets identified in 2009 will also be carried out during this program. Historic hole WP-1, drilled by Hecla Mining Company in 1987, intersected 430 feet of strong REE mineralization in an intercept from 0 to 430 feet that averages 2.44% REO at the Whitetail Ridge area. Within the larger intercept were several 10-foot intercepts with grades ranging from 5.5% to 13.7% REO which will be followed up this year.
"Rare Element is moving the known rare-earths deposit at Bull Hill into the development drilling phase in preparation for a prefeasibility study. We are also excited with the results of the Bull Hill Northwest deposit drilling and resource estimation. The probability of defining more high-grade mineralization at Bull Hill Northwest is excellent," reports Vice President-Exploration, Dr. Jim Clark. "We are also very fortunate to benefit from the experience of Dr. Ellen Leavitt who will manage the rare-earths exploration program again this year."
In addition, the Company's evaluation efforts on the rare-earth resources will culminate in a Preliminary Economic Assessment (Scoping Study) that is scheduled for completion later this summer.
The 2010 gold exploration and drilling program will be announced shortly.
Stock Options
The Board of Directors has also approved a grant of 500,000 stock options to Directors, Officers, employees and consultants exercisable at a price of $2.71 until May 28, 2015.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property.
Rare-earth elements are key components of the green energy technologies and other high-technology applications. Some of the major applications include hybrid automobiles, plug-in electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent light bulbs, metal alloys, additives in ceramics and glass, petroleum cracking catalysts, and a number of critical military applications. China currently produces more than 95% of the 130,000 metric tonnes of rare-earths consumed annually worldwide, and China has been reducing its exports of rare earths each year. The rare-earth market is growing rapidly, and is projected to accelerate if the green technologies are implemented on a broad scale.
ON BEHALF OF THE BOARD
Donald E. Ranta, PhD, PGeo, President & CEO
For information, refer to the Company's website at www.rareelementresources.com or contact:
Mark T Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity.com.
Donald E Ranta, (604) 687-3520 don@rareelementresources.com
Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, which takes full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release...
Rare Element Reports 50% Increase in Rare-Earth Mineral Resources at Bear Lodge Project
- 17.5 Million Tons of Inferred Mineral Resources Averaging 3.46% Rare-Earth Oxides
- Includes 8.0 Million Tons @ 3.62% REO of Near-surface Oxide Mineralization
- Initial Resource Estimate of Bull Hill Northwest Deposit
- Significant Potential for Further Expansion of Deposits
The new resource estimate is derived from a REE database that includes thirty-two core drill holes completed by the Company since 2004 for a total of 28,396.5 feet, plus sixteen drill holes, completed by other companies prior to 2004, for which REE data are available. Approximately 36% of the resource is within 100 feet of a drill hole and 75% of the resource is within 200 feet of a drill hole. For comparison, the initial NI 43-101-compliant inferred mineral resource of 9.8 million tons averaging 4.07% rare-earth oxides (REO) was estimated by ORE and reported in a Technical Report dated April 14, 2009. The new resource estimate focuses on the dike sets in both the Bull Hill Southwest and the Bull Hill Northwest target areas (Figure 1). In addition, there is significant potential for expansion of both deposits and for definition of resources in other areas.
The results of the total mineral resources estimate by ORE for both deposits are summarized for the different oxidation zones and at a range of cutoff grades for each of the oxide, transitional/mixed, and sulfide/unoxidized zones, as follows:
Table 1 Total Inferred Tons and Grade of the Various Oxidation Zones at a Range of Cut-Off Grades (% REO)
Table 2 Total Inferred Tons and Grade (% REO) with REO Content at 1.5% Cutoff Grade
Cutoff Grade1,3 |
Oxide |
Transitional |
Sulfide |
Total |
||||
Tons |
Grade1 |
Tons |
Grade1 |
Tons |
Grade1 |
Tons |
Grade1 |
|
1.0 |
13,700,000 |
2.63 |
4,300,000 |
2.52 |
9,600,000 |
2.70 |
27,600,000 |
2.64 |
1.5 (3) |
8,000,000 |
3.62 |
2,600,000 |
3.39 |
6,900,000 |
3.29 |
17,500,000 |
3.46 |
2.0 |
5,600,000 |
4.45 |
1,700,000 |
4.23 |
4,600,000 |
4.05 |
11,900,000 |
4.26 |
2.5 |
4,400,000 |
5.06 |
1,300,000 |
4.93 |
3,900,000 |
4.37 |
9,600,000 |
4.76 |
3.0 |
3,300,000 |
5.84 |
930,000 |
5.71 |
3,000,000 |
4.88 |
7,200,000 |
5.42 |
3.5 |
2,700,000 |
6.42 |
800,000 |
6.13 |
2,200,000 |
5.53 |
5,600,000 |
6.04 |
4.0 |
2,300,000 |
6.90 |
690,000 |
6.50 |
1,470,000 |
6.33 |
4,400,000 |
6.65 |
4.5 |
1,900,000 |
7.52 |
570,000 |
6.96 |
1,200,000 |
6.79 |
3,600,000 |
7.19 |
5.0 |
1,600,000 |
7.88 |
460,000 |
7.48 |
1,000,000 |
7.24 |
3,100,000 |
7.61 |
Cutoff Grade1,3 |
Total |
REO Content |
|
Tons |
Grade1 |
Million lbs |
|
1.0 |
27,600,000 |
2.64 |
1,454 |
1.5 (3) |
17,500,000 |
3.46 |
1,210 |
2.0 |
11,900,000 |
4.26 |
1,012 |
2.5 |
9,600,000 |
4.76 |
913 |
3.0 |
7,200,000 |
5.42 |
783 |
3.5 |
5,600,000 |
6.04 |
680 |
4.0 |
4,400,000 |
6.65 |
590 |
4.5 |
3,600,000 |
7.19 |
523 |
5.0 |
3,100,000 |
7.61 |
472 |
Table 3 Detailed REO percentages by Zone at 1.5% Cutoff Grade
Parameters & % REO |
|
Total All Zones |
|||
|
|
Oxide |
Mixed |
Sulfide |
Total |
Cutoff (%REO) |
|
1.5 |
1.5 |
1.5 |
1.5 |
Million Tons Resource |
|
8.0 |
2.6 |
6.9 |
17.5 |
Tonnage Factor (ft3/ton) |
|
13.7 |
13.0 |
11.4 |
12.7 |
%REO |
|
3.62 |
3.39 |
3.29 |
3.46 |
Million lbs REO |
|
582 |
174 |
454 |
1,210 |
%Cerium Oxide |
Ce2O3 |
1.66 |
1.62 |
1.61 |
1.63 |
%Lanthanum Oxide |
La2O3 |
1.06 |
1.08 |
1.11 |
1.08 |
%Neodymium Oxide |
Nd2O3 |
0.52 |
0.36 |
0.29 |
0.41 |
%Praseodymium Oxide |
Pr2O3 |
0.16 |
0.14 |
0.12 |
0.14 |
%Samarium Oxide |
Sm2O3 |
0.088 |
0.078 |
0.074 |
0.081 |
%Gadolinium Oxide |
Gd2O3 |
0.045 |
0.042 |
0.037 |
0.042 |
%Yttrium |
Y2O3 |
0.032 |
0.036 |
0.021 |
0.028 |
%Europium Oxide |
Eu2O3 |
0.021 |
0.019 |
0.017 |
0.019 |
%Dysprosium Oxide |
Dy2O3 |
0.018 |
0.012 |
0.011 |
0.014 |
%Terbium Oxide |
Tb2O3 |
0.0075 |
0.0052 |
0.0043 |
0.0059 |
%Erbium Oxide |
Er2O3 |
0.0020 |
0.0018 |
0.0017 |
0.0019 |
%Ytterbium Oxide |
Yb2O3 |
0.0012 |
0.0011 |
0.0010 |
0.0011 |
%Lutetium Oxide |
Lu2O3 |
0.00016 |
0.00014 |
0.00013 |
0.00014 |
%Holmium Oxide |
Ho2O3 |
0.0010 |
0.0008 |
0.0008 |
0.0009 |
%Thulium Oxide |
Tm2O3 |
0.00015 |
0.00013 |
0.00012 |
0.00014 |
- REO (rare-earth oxides) include Ce2O3, La2O3, Nd2O3, Pr2O3, Sm2O3, Gd2O3,, Y2O3,, Eu2O3,, Dy2O3,, and Tb2O3, listed in relative order of decreasing abundance in the deposits, plus minor quantities of other REO (Table 3).
- The resource estimate is classified as Inferred Mineral Resources as defined by CIM and referenced in NI 43-101.
- ORE considers a range of 1.0 to 2.5 per cent REO cut-off grade to be reasonable in preliminary estimation of potentially economic resources. A cutoff grade of 1.5% REO has been selected as the base case and it is highlighted; a cutoff grade of 4.0% REO is also highlighted to show the high-grade tons above the cutoff.
- A detailed program of core sampling and bulk density measurement is being instituted for the 2010 drilling, especially for oxide mineralization which is more difficult to determine.
"The Bear Lodge project is progressing well and the updated resources will be included in a Scoping Study (preliminary economic assessment) scheduled for completion this summer. Our 2010 exploration program consisting of a minimum of 30 in-fill and step-out drill holes is expected to further upgrade and expand the resources. We are also excited about advancing the metallurgical understanding of the REE mineralization and determining the preliminary economic potential of the Bear Lodge project." stated Dr. Don Ranta, President of Rare Element Resources.
Geology & Mineralization
Rare-earth-element mineralization occurs in the north-central core of the Bear Lodge alkaline-igneous complex located in northeastern Wyoming. Virtually all of the significant REE occurrences in the Bear Lodge district are controlled by Rare Element's lode claims. Rare-earth mineralized bodies within the Bull Hill area of the district include well-defined, near-surface oxidized FMR (iron oxide-manganese oxide-REE) dikes and veins and deeper sulfide-bearing carbonatite (a high-carbonate igneous rock) dikes and veins, with a transitional or mixed zone (oxide + sulfide) in between. The Bull Hill Southwest target comprises an FMR-carbonatite dike swarm that strikes northwesterly and dips steeply to the southwest. The dike swarm intrudes heterolithic intrusive breccia of the Bull Hill diatreme. FMR dikes and veins are interpreted to be intensely oxidized and leached equivalents of the carbonatite bodies that are strongly weathered from the surface to depths of about 300-500 feet and moderately weathered and oxidized for another 100 feet or so. Carbonatite dikes at depth are interpreted to transition toward the surface into FMR bodies and range in size from veinlets to large dikes exceeding 100 feet in width. The Bull Hill Southwest deposit consists of several dike sets in the swarm that spread across a zone several hundred feet in width. The dikes appear to pinch and swell in both strike and dip directions, and they can be traced in drill holes over 1,200 feet along strike and 1,000 feet down dip. Some of the dikes are cut off to the southwest and at depth by a north-northwest-trending, east-dipping fault that is generally coincident with a valley floor. A number of widely dispersed gold occurrences are distributed peripherally to the Bull Hill REE mineralization.
The Bull Hill Northwest deposit has many of the same characteristics as Bull Hill Southwest, but oxidation is somewhat deeper. Current interpretation suggests that the dikes strike northerly and have nearly vertical dips. The dikes cut alkalic silicate rocks, predominantly trachytes and phonolites, and they appear to be part of an FMR/carbonatite dike system that is separate from the Bull Hill SW dike system. The deposit is open to the north and at depth, so additional drilling will be done during the 2010 program to better define the orientation of the system and to expand the current resource.
The Company considers the geologic modeling and resource estimation results encouraging for the following reasons:
- Significantly greater tonnage but with slightly lower REO grades compares favorably to the April 2009 NI 43-101-compliant resource estimate.
- The Bull Hill Southwest deposit shows good lateral and vertical continuity of grades within the dike sets.
- The REE mineralization that constitutes the Bull Hill SW resource is open for expansion at depth, to the northwest and southeast, and to the southwest of the West Bull Hill Fault. The Company believes that there is room for the mineral resource tonnage to significantly increase.
- The Bull Hill Northwest area hosts FMR/carbonatite dikes that appear distinct from those at Bull Hill Southwest, thus providing an additional resource area open to the north.
- Historical drilling identifies other Bull Hill area targets, such as Whitetail Ridge, a fault offset to the southwest, and a conceptual carbonatite plug. These targets have yet to be followed up with a systematic drill program.
Cutoff Grade & Metallurgy
The resource size is sensitive to an assumed cut-off grade, which is, in turn, very sensitive to metallurgical operating costs. The Company is steadily advancing its rare-earth metallurgical studies at Mountain States Research & Development International under the direction of Dr. Roshan Bhappu, P.E., with the objective of developing a cost-efficient and effective metallurgical flowsheet. The metallurgical testing program will continue through 2010 on a large surface sample and the mineralized core samples collected during 2009.
Mineral Resources are not Reserves
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. These mineral resource estimates are in the inferred mineral resource category. Inferred mineral resources are normally considered too speculative geologically for the application of economic considerations that would enable them to be categorized as mineral reserves; however they are allowed to be included in a preliminary economic assessment. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.
Quality Assurance
The mineral resource estimate was completed by Mr. Alan C. Noble, P.E., principal engineer of Ore Reserves Engineering, and is based on geological interpretations supplied by the Company to ORE and subsequently modified by ORE. Mr. Noble is an independent qualified person for the purposes of National Instrument 43-101 standards of disclosure for mineral projects of the Canadian Securities Administrators and has verified the data disclosed in this release.
The Rare Element Resources' field programs were carried out under the supervision of Dr. James G. Clark, LGeo, the Company's Vice President of Exploration, and by Dr. Ellen Leavitt, who are both qualified persons for the purposes of National Instrument 43-101 standards of disclosure for mineral projects of the Canadian Securities Administrators. Dr. Clark was also a senior geologist and, subsequently, exploration supervisor for Hecla Mining Company during that company's exploration of Bull Hill and the Bear Lodge district during the late 1980's and early 1990's. A detailed QA/QC program was implemented for the 2007 through 2009 drill programs. The 2009 QA/QC program was organized by Dr. Jeffrey Jaacks. Dr. Jaacks and Dr. Clark have verified the 2009 sampling procedures and QA/QC data delivered to ORE. They share the opinion that the data are of good quality and suitable for use in the resource estimate.
A full table of significant drill results from the Company's 2004-2009 exploration programs and maps and sections detailing the drill-hole locations are available at: http://www.rareelementresources.com
Markets for Rare Earths
Rare-earth elements are key components of the green energy technologies and other high-technology applications. Some of the major applications include hybrid automobiles, plug-in electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent light bulbs, metal alloys in steel, additives in ceramics and glass, petroleum cracking catalysts, and many others. China currently produces more than 95% of the 130,000 tonnes of rare-earths consumed worldwide, and China has been reducing its exports of rare earths each year. The rare-earth market is projected to grow rapidly if the green technologies are implemented on a broad scale.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold. In addition to the REE exploration and evaluation efforts, the Company is exploring for gold on the Sundance project, which is located on the same property in Wyoming.
Rare earths are critical and enabling metals for the green technologies.
ON BEHALF OF THE BOARD
Donald E. Ranta, PhD, PGeo, President & CEO
For information, refer to the Company's website at www.rareelementresources.com or contact:
Mark T Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity.com .
Donald E Ranta, (604) 687-3520 don@rareelementresources.com
Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, which takes full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release..
Figure 1 Location Map of Bull Hill Resources Area and Targets
Rare Element maintains 100% Interest in gold at Bear Lodge
- John Ray retained to lead gold exploration program.
- Property position increased by more than 100%.
- Newmont's pre-emptive right eliminated.
"We are excited about this opportunity for Rare Element because of the potential to define gold deposits with a gold-focused drilling program this year in addition to our planned rare-earth-focused drilling program. We expect to be able to generate the first NI 43-101-compliant gold resource estimate early in 2011 for the Sundance gold project from the planned drilling. We believe gold resources, in addition to our rare-earth resource, will add significant value to the Company and for our shareholders." stated President Don Ranta.
Terms of the Agreement
The gold exploration project will continue to be called the "Sundance" project and the rare-earths project will continue to be called the "Bear Lodge" project. Both projects are included within separate areas of the same property position in the Bear Lodge Mountains. In consideration for transferring its claims and terminating the venture agreement, Newmont was granted a right-of-first-refusal on all claims, excluding rare-earth elements, and a 0.5% NSR royalty, for precious and base metals only, on the new claims being transferred to Rare Element from outside of the Venture.
The original venture agreement, signed in June 2006, required Newmont to spend $5 million over 5 years to earn 65% interest. Newmont had the right to earn an additional 15% working interest by completing a positive feasibility study. To date, Newmont has expended $2.85 million over nearly four years. Newmont's withdrawal from the Sundance venture creates an opportunity for Rare Element to control its own destiny on the property at a time when record demand for gold and rare-earth elements is imminent. The withdrawal agreement honors an arrangement between Newmont and Bronco Creek Exploration Company on Newmont's formerly wholly owned claims; Bronco Creek will continue to receive minor payments and a retained 0.05% NSR royalty, with a cap, on precious and base metals produced on the transferred claims that were wholly owned by Newmont outside the venture area.
The Sundance Venture exploration program, lead by Newmont, also had a right to operate both the gold and REE exploration programs if they ever conflicted and this right is now terminated.
Gold Exploration Summary and Plans
The Bear Lodge property with the additional claims now consists of 489 claims and a leased Wyoming State section for a total of approximately 16 square miles. As a result of the agreement with Newmont, the Company retains a totally unencumbered rare-earth project and now has 100% interest in all gold and other minerals in the Bear Lodge district. The core group of claims (venture area) is free of royalties. Rare Element sees an immediate opportunity to define a potentially economic gold resource by offset drilling of holes where Newmont encountered significant gold mineralization. The exploration goal for near-surface gold targets at the Taylor, Smith, and Carbon gold targets is to define an aggregate resource of 50 to 100 million tons ranging from 0.015 to 0.030 ounces of gold per ton, with considerable upside potential for resource expansion. A drilling program is planned for 2010. The Bear Lodge alkaline-igneous complex, which has many geologic similarities to the Cripple Creek district in Colorado, also has significant potential for the discovery of deeper, high-grade gold mineralization along structural zones.
During the past four years, Newmont contributed significantly to the advancement of the Sundance gold-focused exploration project, and also to the geological, geochemical, and geophysical understanding of the entire project area. Their activities expanded the areas of known gold mineralization and led to increased understanding of the mineralization controls. Newmont drilled 45 holes in the venture area and another 13 holes on their claims held outside the venture. Preliminary metallurgical testing of their drill samples of oxide mineralization suggests excellent gold recoveries (70-80%) in a heap leach system, depending on the crush size. An Environmental Assessment was completed and a Plan of Operations approved for 200 acres of disturbance, a much larger area than typically allowed under exploration permits because of the extent of both gold and rare-earth mineralization. All of the claims, technical data, and other pertinent information generated by Newmont in the district has been or will be transferred to the Company. The Bear Lodge project has been much improved and advanced due to Newmont's efforts, and Rare Element is grateful for their contributions.
Mr. John Ray retained to lead the gold exploration program
Rare Element has retained the services of geologist John Ray, Newmont's former on-site project manager during the past four years, to manage the Company's Sundance gold exploration program under the direction of Dr. James Clark, Vice President of Exploration. Mr. Ray states that, "the Bear Lodge property has many untested exploration targets that are ready for drilling, and the district remains at a relatively immature level of gold exploration. The potential for discovery of major gold deposits is very high for shallow low-grade mineralization, and there is potential for discovery of structurally controlled high-grade mineralization at depth. I am excited about the opportunity to continue guiding the exploration for gold in the Bear Lodge Mountains with Rare Element ".
Rare Element Resources Ltd (TSX-V: RES) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property. Gold exploration in the Bear Lodge Mountains has been conducted for several decades with a number of companies significantly contributing to the database and understanding. Newmont's recent exploration efforts were the most comprehensive and extensive of these programs.
Rare Element's Bear Lodge property encompasses one of the largest disseminated rare-earth occurrences in North America (M H Staatz, 1983, US Geological Survey Professional Paper 1049D). In parallel with the gold-focused exploration project, Rare Element completed an NI 43-101-compliant resource estimate and a Technical Report on the Bear Lodge Rare-Earth Mineralization, and updating of the resource estimate will be completed this spring. The Company has 100% interest in the property, is continuing with drilling and a metallurgical testing program, has begun a Scoping Study to accomplish a preliminary engineering-economic assessment of the rare-earth project, and will conduct drilling for gold mineralization in order to estimate resources.
ON BEHALF OF THE BOARD
Donald E Ranta, PhD, PGeo,
President & CEO
For information, refer to the Company's website at www.rareelementresources.com
or contact:
Donald E Ranta, President & CEO, (604) 687-3520
don@rareelementresources.com
Mark T. Brown, CFO, (604) 687-3520 ext 242
mtbrown@pacificopportunity.com.
Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, which takes full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.