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
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
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
Full details of the resource update can be found at: http://www.rareelementresources.com