Quest Rare Minerals reports Q1 financial results, finishes with $42.3 mln in cash

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 defence.
With China, the biggest supplier of the metals, cutting back sharply on exports, development of rare earths outside China are becoming an increasing focus.
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% beryllium oxide.
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 said.
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 metres.
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 study.
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.