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Re: News Release - Wednesday, May 26, 2010 Title: Rare Element Reports 50% Increase in Rare-Earth Mineral Resources at Bear Lodge Project
- 17.5 Million Tons of Inferred Mineral Resources Averaging 3.46% Rare-Earth Oxides
- Includes 8.0 Million Tons @ 3.62% REO of Near-surface Oxide Mineralization
- Initial Resource Estimate of Bull Hill Northwest Deposit
- Significant Potential for Further Expansion of Deposits
Rare Element Resources Ltd. (RES:TSXV) is pleased to announce the results of an updated mineral resource estimate of rare-earth elements ("REE") plus yttrium contained in two deposits located in the Bull Hill area of the Bear Lodge project, Wyoming (Table 1). The updated resource estimate increases the total pounds of REO contained in the Bull Hill deposits by more than 50% from 800 million pounds to 1,210 million pounds at a 1.5% REO cutoff grade (Table 2). The resource was estimated by an independent consultant---Ore Reserves Engineering (ORE).
The new resource estimate is derived from a REE database that includes thirty-two core drill holes completed by the Company since 2004 for a total of 28,396.5 feet, plus sixteen drill holes, completed by other companies prior to 2004, for which REE data are available. Approximately 36% of the resource is within 100 feet of a drill hole and 75% of the resource is within 200 feet of a drill hole. For comparison, the initial NI 43-101-compliant inferred mineral resource of 9.8 million tons averaging 4.07% rare-earth oxides (REO) was estimated by ORE and reported in a Technical Report dated April 14, 2009. The new resource estimate focuses on the dike sets in both the Bull Hill Southwest and the Bull Hill Northwest target areas (Figure 1). In addition, there is significant potential for expansion of both deposits and for definition of resources in other areas.
The results of the total mineral resources estimate by ORE for both deposits are summarized for the different oxidation zones and at a range of cutoff grades for each of the oxide, transitional/mixed, and sulfide/unoxidized zones, as follows:
Table 1 Total Inferred Tons and Grade of the Various Oxidation Zones at a Range of Cut-Off Grades (% REO)
Cutoff Grade1,3 |
Oxide |
Transitional |
Sulfide |
Total |
Tons |
Grade1 |
Tons |
Grade1 |
Tons |
Grade1 |
Tons |
Grade1 |
1.0 |
13,700,000 |
2.63 |
4,300,000 |
2.52 |
9,600,000 |
2.70 |
27,600,000 |
2.64 |
1.5 (3) |
8,000,000 |
3.62 |
2,600,000 |
3.39 |
6,900,000 |
3.29 |
17,500,000 |
3.46 |
2.0 |
5,600,000 |
4.45 |
1,700,000 |
4.23 |
4,600,000 |
4.05 |
11,900,000 |
4.26 |
2.5 |
4,400,000 |
5.06 |
1,300,000 |
4.93 |
3,900,000 |
4.37 |
9,600,000 |
4.76 |
3.0 |
3,300,000 |
5.84 |
930,000 |
5.71 |
3,000,000 |
4.88 |
7,200,000 |
5.42 |
3.5 |
2,700,000 |
6.42 |
800,000 |
6.13 |
2,200,000 |
5.53 |
5,600,000 |
6.04 |
4.0 |
2,300,000 |
6.90 |
690,000 |
6.50 |
1,470,000 |
6.33 |
4,400,000 |
6.65 |
4.5 |
1,900,000 |
7.52 |
570,000 |
6.96 |
1,200,000 |
6.79 |
3,600,000 |
7.19 |
5.0 |
1,600,000 |
7.88 |
460,000 |
7.48 |
1,000,000 |
7.24 |
3,100,000 |
7.61 | Table 2 Total Inferred Tons and Grade (% REO) with REO Content at 1.5% Cutoff Grade
Cutoff Grade1,3 |
Total |
REO Content |
Tons |
Grade1 |
Million lbs |
1.0 |
27,600,000 |
2.64 |
1,454 |
1.5 (3) |
17,500,000 |
3.46 |
1,210 |
2.0 |
11,900,000 |
4.26 |
1,012 |
2.5 |
9,600,000 |
4.76 |
913 |
3.0 |
7,200,000 |
5.42 |
783 |
3.5 |
5,600,000 |
6.04 |
680 |
4.0 |
4,400,000 |
6.65 |
590 |
4.5 |
3,600,000 |
7.19 |
523 |
5.0 |
3,100,000 |
7.61 |
472 |
Table 3 Detailed REO percentages by Zone at 1.5% Cutoff Grade
Parameters & % REO |
|
Total All Zones |
|
|
Oxide |
Mixed |
Sulfide |
Total |
Cutoff (%REO) |
|
1.5 |
1.5 |
1.5 |
1.5 |
Million Tons Resource |
|
8.0 |
2.6 |
6.9 |
17.5 |
Tonnage Factor (ft3/ton) |
|
13.7 |
13.0 |
11.4 |
12.7 |
%REO |
|
3.62 |
3.39 |
3.29 |
3.46 |
Million lbs REO |
|
582 |
174 |
454 |
1,210 |
%Cerium Oxide |
Ce2O3 |
1.66 |
1.62 |
1.61 |
1.63 |
%Lanthanum Oxide |
La2O3 |
1.06 |
1.08 |
1.11 |
1.08 |
%Neodymium Oxide |
Nd2O3 |
0.52 |
0.36 |
0.29 |
0.41 |
%Praseodymium Oxide |
Pr2O3 |
0.16 |
0.14 |
0.12 |
0.14 |
%Samarium Oxide |
Sm2O3 |
0.088 |
0.078 |
0.074 |
0.081 |
%Gadolinium Oxide |
Gd2O3 |
0.045 |
0.042 |
0.037 |
0.042 |
%Yttrium |
Y2O3 |
0.032 |
0.036 |
0.021 |
0.028 |
%Europium Oxide |
Eu2O3 |
0.021 |
0.019 |
0.017 |
0.019 |
%Dysprosium Oxide |
Dy2O3 |
0.018 |
0.012 |
0.011 |
0.014 |
%Terbium Oxide |
Tb2O3 |
0.0075 |
0.0052 |
0.0043 |
0.0059 |
%Erbium Oxide |
Er2O3 |
0.0020 |
0.0018 |
0.0017 |
0.0019 |
%Ytterbium Oxide |
Yb2O3 |
0.0012 |
0.0011 |
0.0010 |
0.0011 |
%Lutetium Oxide |
Lu2O3 |
0.00016 |
0.00014 |
0.00013 |
0.00014 |
%Holmium Oxide |
Ho2O3 |
0.0010 |
0.0008 |
0.0008 |
0.0009 |
%Thulium Oxide |
Tm2O3 |
0.00015 |
0.00013 |
0.00012 |
0.00014 |
- REO (rare-earth oxides) include Ce2O3, La2O3, Nd2O3, Pr2O3, Sm2O3, Gd2O3,, Y2O3,, Eu2O3,, Dy2O3,, and Tb2O3, listed in relative order of decreasing abundance in the deposits, plus minor quantities of other REO (Table 3).
- The resource estimate is classified as Inferred Mineral Resources as defined by CIM and referenced in NI 43-101.
- ORE considers a range of 1.0 to 2.5 per cent REO cut-off grade to be reasonable in preliminary estimation of potentially economic resources. A cutoff grade of 1.5% REO has been selected as the base case and it is highlighted; a cutoff grade of 4.0% REO is also highlighted to show the high-grade tons above the cutoff.
- A detailed program of core sampling and bulk density measurement is being instituted for the 2010 drilling, especially for oxide mineralization which is more difficult to determine.
Resources were estimated using nearest-neighbor assignment. Drill holes were composited to nominal 10-foot intervals for estimation, and grades were not capped. Grades were assigned using a rectangular projection of 300 X 300 X 10 feet, where the longer distance is parallel to the carbonatite/ FMR dike orientation. The resource model blocks are 10 X 10 X 10-foot cubes. Based on current REO prices, the cutoff grade of 1.5% REO was selected near the mid-point of a range of likely cost scenarios. As additional data are gathered, work will continue to be done on the resources estimates with further evaluation and refinement.
"The Bear Lodge project is progressing well and the updated resources will be included in a Scoping Study (preliminary economic assessment) scheduled for completion this summer. Our 2010 exploration program consisting of a minimum of 30 in-fill and step-out drill holes is expected to further upgrade and expand the resources. We are also excited about advancing the metallurgical understanding of the REE mineralization and determining the preliminary economic potential of the Bear Lodge project." stated Dr. Don Ranta, President of Rare Element Resources.
Geology & Mineralization
Rare-earth-element mineralization occurs in the north-central core of the Bear Lodge alkaline-igneous complex located in northeastern Wyoming. Virtually all of the significant REE occurrences in the Bear Lodge district are controlled by Rare Element's lode claims. Rare-earth mineralized bodies within the Bull Hill area of the district include well-defined, near-surface oxidized FMR (iron oxide-manganese oxide-REE) dikes and veins and deeper sulfide-bearing carbonatite (a high-carbonate igneous rock) dikes and veins, with a transitional or mixed zone (oxide + sulfide) in between. The Bull Hill Southwest target comprises an FMR-carbonatite dike swarm that strikes northwesterly and dips steeply to the southwest. The dike swarm intrudes heterolithic intrusive breccia of the Bull Hill diatreme. FMR dikes and veins are interpreted to be intensely oxidized and leached equivalents of the carbonatite bodies that are strongly weathered from the surface to depths of about 300-500 feet and moderately weathered and oxidized for another 100 feet or so. Carbonatite dikes at depth are interpreted to transition toward the surface into FMR bodies and range in size from veinlets to large dikes exceeding 100 feet in width. The Bull Hill Southwest deposit consists of several dike sets in the swarm that spread across a zone several hundred feet in width. The dikes appear to pinch and swell in both strike and dip directions, and they can be traced in drill holes over 1,200 feet along strike and 1,000 feet down dip. Some of the dikes are cut off to the southwest and at depth by a north-northwest-trending, east-dipping fault that is generally coincident with a valley floor. A number of widely dispersed gold occurrences are distributed peripherally to the Bull Hill REE mineralization.
The Bull Hill Northwest deposit has many of the same characteristics as Bull Hill Southwest, but oxidation is somewhat deeper. Current interpretation suggests that the dikes strike northerly and have nearly vertical dips. The dikes cut alkalic silicate rocks, predominantly trachytes and phonolites, and they appear to be part of an FMR/carbonatite dike system that is separate from the Bull Hill SW dike system. The deposit is open to the north and at depth, so additional drilling will be done during the 2010 program to better define the orientation of the system and to expand the current resource.
The Company considers the geologic modeling and resource estimation results encouraging for the following reasons:
- Significantly greater tonnage but with slightly lower REO grades compares favorably to the April 2009 NI 43-101-compliant resource estimate.
- The Bull Hill Southwest deposit shows good lateral and vertical continuity of grades within the dike sets.
- The REE mineralization that constitutes the Bull Hill SW resource is open for expansion at depth, to the northwest and southeast, and to the southwest of the West Bull Hill Fault. The Company believes that there is room for the mineral resource tonnage to significantly increase.
- The Bull Hill Northwest area hosts FMR/carbonatite dikes that appear distinct from those at Bull Hill Southwest, thus providing an additional resource area open to the north.
- Historical drilling identifies other Bull Hill area targets, such as Whitetail Ridge, a fault offset to the southwest, and a conceptual carbonatite plug. These targets have yet to be followed up with a systematic drill program.
The updated mineral resource estimate confirms that potentially economic resources are present in the Bull Hill area, and it justifies further technical work including drilling, metallurgical testing, and engineering studies. Considerable in-fill definition drilling is required to increase the confidence level and upgrade the inferred resources to the indicated category. Step-out drilling will likely expand the resource and define the boundaries of the mineralization.
Cutoff Grade & Metallurgy
The resource size is sensitive to an assumed cut-off grade, which is, in turn, very sensitive to metallurgical operating costs. The Company is steadily advancing its rare-earth metallurgical studies at Mountain States Research & Development International under the direction of Dr. Roshan Bhappu, P.E., with the objective of developing a cost-efficient and effective metallurgical flowsheet. The metallurgical testing program will continue through 2010 on a large surface sample and the mineralized core samples collected during 2009.
Mineral Resources are not Reserves
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. These mineral resource estimates are in the inferred mineral resource category. Inferred mineral resources are normally considered too speculative geologically for the application of economic considerations that would enable them to be categorized as mineral reserves; however they are allowed to be included in a preliminary economic assessment. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.
Quality Assurance
The mineral resource estimate was completed by Mr. Alan C. Noble, P.E., principal engineer of Ore Reserves Engineering, and is based on geological interpretations supplied by the Company to ORE and subsequently modified by ORE. Mr. Noble is an independent qualified person for the purposes of National Instrument 43-101 standards of disclosure for mineral projects of the Canadian Securities Administrators and has verified the data disclosed in this release.
The Rare Element Resources' field programs were carried out under the supervision of Dr. James G. Clark, LGeo, the Company's Vice President of Exploration, and by Dr. Ellen Leavitt, who are both qualified persons for the purposes of National Instrument 43-101 standards of disclosure for mineral projects of the Canadian Securities Administrators. Dr. Clark was also a senior geologist and, subsequently, exploration supervisor for Hecla Mining Company during that company's exploration of Bull Hill and the Bear Lodge district during the late 1980's and early 1990's. A detailed QA/QC program was implemented for the 2007 through 2009 drill programs. The 2009 QA/QC program was organized by Dr. Jeffrey Jaacks. Dr. Jaacks and Dr. Clark have verified the 2009 sampling procedures and QA/QC data delivered to ORE. They share the opinion that the data are of good quality and suitable for use in the resource estimate.
A full table of significant drill results from the Company's 2004-2009 exploration programs and maps and sections detailing the drill-hole locations are available at: http://www.rareelementresources.com
Markets for Rare Earths
Rare-earth elements are key components of the 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, compact fluorescent light bulbs, metal alloys in steel, additives in ceramics and glass, petroleum cracking catalysts, and many others. China currently produces more than 95% of the 130,000 tonnes of rare-earths consumed worldwide, and China has been reducing its exports of rare earths each year. The rare-earth market is projected to grow rapidly if the green technologies are implemented on a broad scale.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold. In addition to the REE exploration and evaluation efforts, the Company is exploring for gold on the Sundance project, which is located on the same property in Wyoming.
Rare earths are critical and enabling metals for the green technologies.
ON BEHALF OF THE BOARD
Donald E. Ranta, PhD, PGeo, President & CEO
For information, refer to the Company's website at www.rareelementresources.com or contact: Mark T Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity..com . Donald E Ranta, (604) 687-3520 don@rareelementresources.com
Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, which takes full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release..
Figure 1 Location Map of Bull Hill Resources Area and Targets
Copyright � 2010 RARE ELEMENT RESOURCES LTD. (RES.V) All rights reserved. For more information visit our website at http://www.rareelementresources.com/ or send email to info@rareelementresources.com ..
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CODE : RES.TO |
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Rare Element Res. is a gold exploration company based in Canada. Rare Element Res. holds various exploration projects in USA. Its main exploration properties are BEAR LODGE and SUNDANCE GOLD in USA. Rare Element Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 10.9 millions as of today (€ 10.0 millions). Its stock quote reached its highest recent level on August 12, 2011 at CA$ 9.95, and its lowest recent point on January 01, 2016 at CA$ 0.21. Rare Element Res. has 52 940 000 shares outstanding. |
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1/19/2016 | Rare Element Resources Achieves Important Permitting Milesto... |
12/17/2015 | Rare Element Resources Implements Extensive Cost Cutting Mea... |
12/17/2015 | Rare Element Resources Implements Extensive Cost-Cutting Mea... |
12/16/2015 | Rare Element Resources Expands on Advantages of Its Patent-P... |
11/6/2015 | Rare Element Resources Reports Third Quarter Results |
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9/8/2015 | Rare Element Resources to Participate in 17th Annual Rodman ... |
8/24/2015 | Rare Element Files Canadian Preliminary Shelf Prospectus to ... |
8/12/2015 | 10-Q for Rare Element Resources Ltd. |
8/7/2015 | Rare Element Resources reports 2Q loss |
8/7/2015 | Rare Element Resources Reports Second Quarter Results |
7/15/2015 | Exploration at Rare Element Resources’ Bear Lodge Mineraliza... |
5/15/2015 | 10-Q for Rare Element Resources Ltd. |
5/7/2015 | 10-K for Rare Element Resources Ltd. |
3/30/2015 | Rare Element Resources Confirms Revised EIS Schedule Support... |
3/24/2015 | Rare Element Resources to Participate in the John Tumazos Ve... |
3/12/2015 | Rare Element Resources Reports Year-End 2014 Financial Resul... |
3/3/2015 | Rare Element Resources Names Lowell A. Shonk as Interim Chai... |
3/3/2015 | Rare Element reports Unanimous Support from Wyoming Legislat... |
2/11/2015 | Rare Element Resources Reports on Significant Progress in 20... |
11/13/2014 | Rare Element Resources to Participate in the 32nd Annual Wyo... |
11/10/2014 | Rare Element Resources Reports Third Quarter Results |
2/27/2014 | to Participate in Largest Mining Conference of the Year |
2/3/2014 | Transitions Geological Team |
1/21/2014 | Files for Utility Patent on Recovery Technology |
12/19/2013 | Trouble with the tables? |
12/16/2013 | Announce EIS Contractor and PM |
11/12/2013 | 3rd Quarter Results |
9/25/2013 | Announces $8.0 Million Offering |
6/11/2013 | Files Shelf Registration |
6/5/2013 | Independent Labs Confirm Success of Rare Element's Proprieta... |
5/3/2013 | Files NI 43-101 Technical Report Detailing Previously Announ... |
4/19/2013 | Mark T. Brown Resigns as Director of Rare Element |
3/18/2013 | Reports December 31, 2012 Financial Results, Substantial Inc... |
3/11/2013 | Reports Additional Drilling Results High in Critical Rare Ea... |
2/25/2013 | to Present at Upcoming PDAC 2013 Investor Exchange |
2/20/2013 | provides information of cease trade on TSX |
12/10/2012 | Drilling Results Expand District-wide Enrichment Zones of Cr... |
11/8/2012 | Announces Annual General Meeting and Director Nominees; Adop... |
10/16/2012 | Provides Support to Colleges and Universities for REE Resear... |
9/21/2012 | Added to S&P/TSX SmallCap Index |
9/13/2012 | (Bear Lodge)Announces June 30, 2012 Year End and Fourth Quarter Financia... |
8/13/2012 | s Its Community Relations Activities |
5/7/2012 | Reports 10 Percent Increase of M & I Rare-Earth Mineral Reso... |
4/13/2012 | (Bear Lodge)Announces Revised and Improved Economic Results from Pre-Fe... |
4/12/2012 | Schedules Conference Call for Tuesday, April 17, 2012, 3:30p... |
3/26/2012 | Reports Additional 2011 Rare Earth Element and Gold Drilling... |
3/15/2012 | Commences Separation Testing and Heavy Rare Earth Testing |
3/1/2012 | (Bear Lodge)Announces Positive Economic Results from Pre-Feasibility Stu... |
2/27/2012 | Reports 2011 Gold Drilling Assay Results, Including the Best... |
2/10/2012 | (Bear Lodge)Files December 31 Second Quarter Financial Results and Updat... |
1/22/2012 | Chairman Don Ranta interviewed by Charles Payne on Fox Busin... |
1/4/2012 | (Bear Lodge)Reports 38 Percent Increase of M & I Rare-Earth Mineral Reso... |
12/21/2011 | Reports Additional Drilling Results And Progress with Pilot ... |
9/7/2011 | Releases Rare Earth Metallurgical Test Results and Begins Pi... |
8/15/2011 | Ringing the Opening Bell of the NYSE Amex on August 16, 2011 |
8/5/2011 | (Bear Lodge)Discovers Heavy Rare Earths at Whitetail Ridge, East Taylor ... |
8/4/2011 | Discovers Heavy Rare Earths at Whitetail Ridge, East Taylor ... |
7/27/2011 | Applauds U.S. House Committee Passage of Strategic Resources... |
6/28/2011 | 2011 REE Drilling Underway |
6/14/2011 | (Bear Lodge)Reports Upgrade and Significant Increase of Rare-Earth Miner... |
5/26/2011 | shares to trade on the Toronto Stock Exchange on May 27, 201... |
7/13/2010 | Drilling Begins at Rare Element's Sundance Gold Project |
6/28/2010 | Makes Progress with Government Affairs Program |
5/12/2010 | Maintains 100% Interest in gold |
4/13/2010 | Closes $8.8 Million Financing |
3/18/2010 | $7.8 Million Offering |
2/23/2010 | Definitive Eden Lake Rare-Earth Property Agreement Completed... |
2/5/2010 | Named to 2010 TSX Venture 50 |
1/8/2010 | Acquires Nuiklavik REE Project in Labrador, Canada |
12/7/2009 | 2009 Drill Program Tests Gold Targets at Bear Lodge |
12/1/2009 | Options Eden Lake Rare-Earth Property to Medallion |
11/19/2009 | Files US SEC Registration Form 20F |
10/22/2009 | US government begins to focus on rare earths |
10/13/2009 | Identifies High-Potential Whitetail Ridge Rare-Earth Target |
7/21/2009 | Drilling Begins at Rare Element's Sundance Gold Venture |
5/23/2009 | increases financing to $1,500,000, files Tier One applicatio... |
7/15/2008 | s Resources' Gold Exploration Program Initiated |
5/29/2008 | Reports on Gold Metallurgical Test Results |
2/18/2008 | 's Rare-Earths Metallurgical Testing Underway |
1/17/2008 | ' new corporate profile |
1/11/2008 | Upcoming conference |
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