Tuesday, 8 May 2012

Rare Element unveils 10% boost in M&I rare earth resources at Bull Hill

Rare Element Resources (TSE:REE)(AMEX:REE) Tuesday unveiled an updated NI 43-101-compliant mineral resource estimate for the three deposits located in the Bull Hill area of the Bear Lodge project, Wyoming.
The company registered a 10 percent increase in measured and indicated resources and a 61 percent increase in oxide and oxide-carbonate inferred mineral resources.
"We are pleased with the results received to date from the exploration successes at the Bear Lodge project," Rare Element's president and CEO Randall Scott said.
"It is significant to note that the increase in the resource base as announced in this press release is based on the totality of results from all the holes that were drilled in 2011 and includes those that were not yet available for our previous press releases.
"Additionally, we have seen an increase of 46 percent in the Inferred resources at the Whitetail Ridge deposit which has a higher concentration of heavy REEs.
"We are anxious to begin the 2012 exploration and drilling activities to expand all deposits and compare the new results to the excellent results we received in 2011."
Rare Element's updated resource estimate for its Bull Hill deposit consists of 7.5 million tons (6.8 million metric tonnes) grading 3.79% Rare Earth Oxides (REO) in the measured and indicated categories, up from the 6.8 million tons (6.2 million metric tonnes) averaging 3.75% REO reported in January, both using a 1.5% REO cutoff grade.
The total pounds of REO contained in all the high-grade deposits in all resource categories increased by 38 percent from 1,831 million pounds (832 million kg) to 2,525 million pounds (1,148 million kg).
The inferred oxide and oxide carbonate resource rose by about 61 percent, from 16.5 million tons (15.0 million metric tonnes) grading 2.76% REO in January to 25.7 million tons (23.3 million metric tonnes) at a grade of 2.86% REO.
The near-surface oxide and oxide-carbonate resources are those that are potentially amenable to open-pit mining, and have favorable metallurgical characteristics, the company said.
The new resource estimate, which was completed by independant consultant Ore Reserves Engineering, is derived from a Rare Earth Element (REE) drill hole database that includes 139 core holes completed by the company between 2008 and 2011.
The estimate focuses on the dike sets in the main Bull Hill deposit (including Bull Hill West), plus the Bull Hill Northwest and Whitetail Ridge deposit areas. The Bull Hill deposit contains the bulk of the current resources.
The company said the drilling indicates significant potential for expansion of all three deposit areas, for discovering mineralization in the undrilled areas between the deposits, and for the definition of heavy REE-enriched resources in the East Taylor and Carbon targets, both of which were drilled in 2011.
The Whitetail Ridge deposit is more enriched in the more valuable heavy rare earths (HREEs) and is distinguished by a zone of FMR stockwork, some dikes, and a coincident geophysical anomaly, the company said.
In March, Rare Element announced positive economic results from its pre-feasibility study at the project, which established a proven plus probable mineral reserve for the Bull Hill deposit of 7.914 million tons (7.2 million metric tonnes) at a grade of 3.12% REO, at a cutoff grade of 1.1% REO.
REEs are key components of 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, metal alloys in steel, additives in ceramics and glass, and many others.
China currently produces more than 96 percent of the 124,000 tonnes of rare-earths consumed worldwide annually, and the country has been reducing its exports of rare earths each year.
The rare-earth market is projected to grow rapidly as these green technologies are implemented on a broad scale, and ensuring domestic supply is seen as critical.
Rare Element Resources is focused on the exploration and development of rare-earth elements and gold. In addition to REE exploration, the company is exploring for gold on the Sundance project, which is located on the same property in Wyoming.
Full details of the resource update can be found at: http://www.rareelementresources.com

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