| | Published : May 12th, 2010 | Maintains 100% Interest in gold |
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Re: News Releases - Wednesday, May 12, 2010 Title: Rare Element maintains 100% Interest in gold at Bear Lodge
- John Ray retained to lead gold exploration program.
- Property position increased by more than 100%.
- Newmont's pre-emptive right eliminated.
Vancouver, BC -- Rare Element Resources Ltd. (TSX-V: RES) ("Rare Element" or the "Company") announces that the Company has signed an agreement with Newmont North American Exploration Ltd. ("Newmont") that Newmont will not exercise its option to acquire a 65% interest in the gold and base metals at the Sundance Venture of Rare Element's Bear Lodge property, Wyoming. This allows Rare Element to maintain its 100% interest in the mineral potential within the entire property. In addition, all of Newmont's 327 wholly owned claims outside the venture will be transferred to the Company.
"We are excited about this opportunity for Rare Element because of the potential to define gold deposits with a gold-focused drilling program this year in addition to our planned rare-earth-focused drilling program. We expect to be able to generate the first NI 43-101-compliant gold resource estimate early in 2011 for the Sundance gold project from the planned drilling. We believe gold resources, in addition to our rare-earth resource, will add significant value to the Company and for our shareholders." stated President Don Ranta.
Terms of the Agreement
The gold exploration project will continue to be called the "Sundance" project and the rare-earths project will continue to be called the "Bear Lodge" project. Both projects are included within separate areas of the same property position in the Bear Lodge Mountains. In consideration for transferring its claims and terminating the venture agreement, Newmont was granted a right-of-first-refusal on all claims, excluding rare-earth elements, and a 0.5% NSR royalty, for precious and base metals only, on the new claims being transferred to Rare Element from outside of the Venture.
The original venture agreement, signed in June 2006, required Newmont to spend $5 million over 5 years to earn 65% interest. Newmont had the right to earn an additional 15% working interest by completing a positive feasibility study. To date, Newmont has expended $2.85 million over nearly four years. Newmont's withdrawal from the Sundance venture creates an opportunity for Rare Element to control its own destiny on the property at a time when record demand for gold and rare-earth elements is imminent. The withdrawal agreement honors an arrangement between Newmont and Bronco Creek Exploration Company on Newmont's formerly wholly owned claims; Bronco Creek will continue to receive minor payments and a retained 0.05% NSR royalty, with a cap, on precious and base metals produced on the transferred claims that were wholly owned by Newmont outside the venture area.
The Sundance Venture exploration program, lead by Newmont, also had a right to operate both the gold and REE exploration programs if they ever conflicted and this right is now terminated.
Gold Exploration Summary and Plans
The Bear Lodge property with the additional claims now consists of 489 claims and a leased Wyoming State section for a total of approximately 16 square miles. As a result of the agreement with Newmont, the Company retains a totally unencumbered rare-earth project and now has 100% interest in all gold and other minerals in the Bear Lodge district. The core group of claims (venture area) is free of royalties. Rare Element sees an immediate opportunity to define a potentially economic gold resource by offset drilling of holes where Newmont encountered significant gold mineralization. The exploration goal for near-surface gold targets at the Taylor, Smith, and Carbon gold targets is to define an aggregate resource of 50 to 100 million tons ranging from 0.015 to 0.030 ounces of gold per ton, with considerable upside potential for resource expansion. A drilling program is planned for 2010. The Bear Lodge alkaline-igneous complex, which has many geologic similarities to the Cripple Creek district in Colorado, also has significant potential for the discovery of deeper, high-grade gold mineralization along structural zones.
During the past four years, Newmont contributed significantly to the advancement of the Sundance gold-focused exploration project, and also to the geological, geochemical, and geophysical understanding of the entire project area. Their activities expanded the areas of known gold mineralization and led to increased understanding of the mineralization controls. Newmont drilled 45 holes in the venture area and another 13 holes on their claims held outside the venture. Preliminary metallurgical testing of their drill samples of oxide mineralization suggests excellent gold recoveries (70-80%) in a heap leach system, depending on the crush size. An Environmental Assessment was completed and a Plan of Operations approved for 200 acres of disturbance, a much larger area than typically allowed under exploration permits because of the extent of both gold and rare-earth mineralization. All of the claims, technical data, and other pertinent information generated by Newmont in the district has been or will be transferred to the Company. The Bear Lodge project has been much improved and advanced due to Newmont's efforts, and Rare Element is grateful for their contributions.
Mr. John Ray retained to lead the gold exploration program
Rare Element has retained the services of geologist John Ray, Newmont's former on-site project manager during the past four years, to manage the Company's Sundance gold exploration program under the direction of Dr. James Clark, Vice President of Exploration. Mr. Ray states that, "the Bear Lodge property has many untested exploration targets that are ready for drilling, and the district remains at a relatively immature level of gold exploration. The potential for discovery of major gold deposits is very high for shallow low-grade mineralization, and there is potential for discovery of structurally controlled high-grade mineralization at depth. I am excited about the opportunity to continue guiding the exploration for gold in the Bear Lodge Mountains with Rare Element ".
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 on the Bear Lodge property. Gold exploration in the Bear Lodge Mountains has been conducted for several decades with a number of companies significantly contributing to the database and understanding. Newmont's recent exploration efforts were the most comprehensive and extensive of these programs.
Rare Element's Bear Lodge property encompasses one of the largest disseminated rare-earth occurrences in North America (M H Staatz, 1983, US Geological Survey Professional Paper 1049D). In parallel with the gold-focused exploration project, Rare Element completed an NI 43-101-compliant resource estimate and a Technical Report on the Bear Lodge Rare-Earth Mineralization, and updating of the resource estimate will be completed this spring. The Company has 100% interest in the property, is continuing with drilling and a metallurgical testing program, has begun a Scoping Study to accomplish a preliminary engineering-economic assessment of the rare-earth project, and will conduct drilling for gold mineralization in order to estimate resources.
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:
Donald E Ranta, President & CEO, (604) 687-3520 don@rareelementresources.com Mark T. Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity.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.
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 .. Message sent on Wed May 12, 2010 at 1:07:22 PM Pacific Time
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Rare Element Resources Ltd.
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EXPLORATION STAGE |
CODE : RES.TO |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
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. |
Option Grants of Rare Element Resources Ltd. |
Nominations of Rare Element Resources Ltd. |
Financials of Rare Element Resources Ltd. |
Project news of Rare Element Resources Ltd. |
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Corporate news of Rare Element Resources Ltd. |
2/1/2016 | Rare Element Resources Announces Intention to Voluntarily De... |
1/22/2016 | Rare Element Resources Announces Suspension of Permitting Ac... |
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 |
10/14/2015 | Rare Element Resources Successfully Completes First Phase of... |
10/7/2015 | Rare Element Resources Completes Summer Condemnation Drillin... |
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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