Quest Rare Minerals (TSE:QRM) (AMEX:QRM) reported after market Friday its first interim financial statements prepared in accordance with International Financial Reporting Standards.
As at January 31, 2012, Quest had a total of $42.3 million in cash and Canadian provincial and AAA-rated corporate bonds.
The company is currently advancing the Strange Lake and Misery Lake
areas of northeastern Quebec. Quest's 2009 exploration led to the
discovery of the significant rare earth metal deposit, the B-Zone, on
its Strange Lake property.
The B-Zone deposit is one of the largest heavy rare earth resources
in the world and is exposed at surface and amenable to a low-cost open
pit mine. It has the potential to provide a long-term, stable supply of
separated and refined heavy rare earths.
Quest is advancing the project to deliver a pre-feasibility study
(PFS) for the deposit in the second half of 2012. At that time, the
company is expected to have a more accurate idea as to the delivery
timelines for its definitive feasibility study and for mine start-up.
Rare earths are a group elements critical in the development of clean
energy technologies including electronics, hybrid vehicles, permanent
magnets, green energy platforms and advanced technologies for national
With China, the biggest supplier of the metals, cutting back sharply
on exports, development of rare earths outside China are becoming an
The Strange Lake property, located 220 km northeast of Schefferville and 125 km west of the Voisey Bay Nickel-Copper-Cobalt Mine, covers an area of 54,000 hectares.
In April 2010, an NI 43-101 preliminary resource estimate of the B
Zone completed by Wardrop Engineering indicated that at a 0.95% total
rare earth oxides (TREO) base-case cut-off grade, the B Zone contains an
indicated resource of 36.4 million tonnes grading 1.16% TREO, 2.17%
zirconium oxide, 0.24% niobium pentoxide, 0.05% hafnium oxide and 0.12%
This resource calculation showed the heavy rare earth oxide-rich
nature of the B Zone, representing between 40 percent and 51 percent of
the TREO in the deposit.
The company is also in the process of a rare earth market study in
order to better understand the market and target potential buyers. Quest
is targeting the production of niobium, zirconium and potentially
berylllium at the B-Zone deposit.
The company is looking to add a beryllium contribution to its model
in the wake of recent comments from Canada's government was looking to
buld a strategic stockpile for military use.
Quest's revenues for the quarter were $180,793 compared to $153,304
for the quarter that ended January 31, 2011, and consisted of interest
income earned on funds on deposit.
Expenses for the latest period totalled $914,354 versus $7.7 million a year ago.
As a result, the company's net loss narrowed sharply to $557,870 for
the quarter compared to a net loss of $7.55 million a year earlier.
Earlier this year, Quest released the results of its successful B-Zone definition diamond drilling program.
Final results for holes BZ-11-118 to BZ-11-255 returned multiple,
high grade intersections of between 1.12% and 6.11% total rare earth
oxide (TREO), over thicknesses of 2.34 to 147.0 metres, the company
The higher in value heavy rare earth oxide (HREO) represents between
22.4% and 76.5% of the TREO content intersected in the new drilling.
Among the best holes of the infill program, BZ11218 hit 1.44% TREO
over 144.4 metres, and hole BZ11189 returned 1.23% TREO over 116.1
metres, including 3.04% TREO over 11.7 metres and 4.9% TREO over 4.9
The 2012 pre-feasibility study work program includes the completion
of the metallurgical solution for the B-Zone, finishing the preliminary
engineering for the project, execution of the financial analysis for the
project and delivery of the final NI 43-101 compliant pre-feasibility
Quest said in its statement Friday that its annual general meeting
will be held Wednesday, April 18 at 10 a.m. at Le Centre Sheraton
Montreal, Salon 7, 1201 René-Lévesque Blvd. West, Montreal.
Quest’s interim financial statements and MD&A are available under Quest’s profile on SEDAR at www.sedar.com and and on Quest’s website at www.questrareminerals.com.