Quantum recaps operations at Elk Creek, to complete PEA by spring 2012

Quantum Rare Earth Developments (CVE:QRE) recapped its operational activities at its Elk Creek project in southeastern Nebraska during 2011, and divulged its plans for the new year.
The Vancouver, B.C.-based company said it plans to hire an outside engineering firm to complete an updated NI 43-101 resource calculation, and is in the final stages of signing an agreement for an independent preliminary economic assessment for the property, slated for completion in the spring of 2012.
It also plans to complete additional infill drilling in order to upgrade resources to the measured and indicated category, Quantum said.
In March, Quantum released the most current NI 43-101 resource report on the property, which showed an inferred resource of 80.1 million tonnes grading 0.62 percent niobium pentoxide, for 493.2 million kilograms of niobium pentoxide.

Niobium pentoxide is a naturally occurring form of niobium, which is frequently used in metal alloys, and is a crucial part of jet thrusters, MRI machines, stainless steel, and steel used in bridges, buildings, and oil and gas pipelines.

Quantum continued its drill program on the property, and in July announced the results of drill hole NEC11-01, which targeted an infill zone where the NI 43-101 report did not have any credits. This hole reported 235 metres grading 0.73 percent niobium pentoxide, including 54 metres at 1.17 percent niobium pentoxide.

In August, the company announced additional results, including 179 metres grading 0.87 percent niobium pentoxide, including 131 metres at 1.02 percent niobium pentoxide, in hole NEC11-002.

Quantum also signed a metallurgical testing agreement with Hazen Research, intended to test the niobium recoveries from recently drilled core.

Quantum expects to receive these results in 2012.

Additional drill results were received in September, including hole NEC11-004, which returned 236 metres grading 2.1 percent total rare earth oxide (TREO), including 68 metres at 3.32 percent TREO.

In November and December, the company completed parts of its plan to focus on its Elk Creek project, including the completion of option agreements to divest its Australian and Ontario properties, and the completion of a $750,000 financing.

Quantum Rare Earth's president and CEO, Peter Dickie said: "We are particularly proud of the accomplishments made by our development team this year on the Elk Creek deposit.

"We are well-positioned to reach the next level of development of our large niobium resource, and our dedicated development team continues to work hard towards achieving these goals."

Looking forward, Quantum said it plans to engage an outside engineering firm to complete an updated NI 43-101 resource calculation, as well as a preliminary economic assessment for the property.

It also plans to complete additional infill drilling in order to upgrade the deposit to the indicated and measured category, Quantum said.