Montero announces 3.3MT initial inferred resource on only fraction of Wigu Hill rare earth complex

Montero Mining and Exploration (CVE: MON) announced Monday an initial inferred resource of 3.3 million tonnes on only the eastern ridge of its Wigu Hill rare earth project in Tanzania, suggesting the potential for more resources.
The estimate of the Tembo and Twiga deposits, prepared by AMEC Earth & Environmental Services, indicates an inferred resource of 3.3 million tonnes at a grade of 2.6% light rare earth oxide (LREO5).
Rare earth elements, a group of 15 metals, are critical in the development of emerging green technologies and high-tech applications, from electric and hybrid vehicles and wind and hydro power turbines, to LCD screens, MRI, X-ray machines, mobile devices and other computing equipment.
Currently, China produces 97% of world supply the metals. With the rising prices of rare earths, and China's control over export quotas, it is becoming more and more critical to secure other supply.
The initial resource was developed from the preliminary drilling program of 21 boreholes, or 2,225 metres, with holes drilled to a maximum depth of about 150 metres below surface, the company said.
Montero also said that a cut-off sensitivity analysis shows the inferred resource contains a higher-grade portion, consisting of 510,000 tonnes averaging 4.4% LREO5. This sensitivity case applied a mineralised indicator cut-off of 0.7, meaning tonnages and grades were based on the selection of only those blocks with greater than 70% mineralized material.
The reported inferred mineral resource was based on a grade cut-off of 1.0% LREO5. Where the mineralized indicator is close to 1.0, it indicates a higher proportion of the block is made up of mineralized material.
President and CEO of the company, Dr. Tony Harwood, said: "Our initial resource only represents shallow drilling down to 150m from surface on two of ten drill targets currently identified at Wigu Hill and we are focused on adding to our initial 43-101 Compliant Resource Estimate through exploration drilling on the remaining 8 targets."
"The resource is currently classified as inferred, however through further in-fill drilling and metallurgical test-work, currently underway, we are confident it can be upgraded to the indicated category.
"The results of our initial resource combined with the potential of the Tumbili and Nyati targets, indicate the potential for a sizeable Light Rare Earth deposit."
In 2010, detailed sampling on Tembo and Twiga identified high-grade total rare earth oxide (TREO) values with individual values of up to 26.2% TREO and 27.25% TREO, respectively.
Metallurgical test work on samples from the property and further drilling, including infill drilling on the Twiga and Tembo prospects, as well as drilling on other targets, is in progress.
These results will form the basis for an updated resource estimate, the company said.