Rare Element Reports Inferred Mineral Resource Estimate for Sundance Gold
Project
- 947,000 ounces of gold in three
deposits contained in 69.3 million metric tonnes
averaging 0.42 g Au/t using a 0.15 g/t cutoff grade
Rare Element Resources Ltd. (TSX V:
RES and AMEX: REE) ("Rare Element" or the "Company")
is pleased to report an NI 43-101-compliant inferred mineral resource estimate
for the 100% owned Sundance gold project in the Bear Lodge Mountains, Crook
County, northeastern Wyoming. The gold resource estimate was prepared by Ore
Reserves Engineering (O.R.E.) of Lakewood, Colorado. The Company continues to
advance the geological understanding of the Sundance gold project by defining
an inferred mineral resource and by metallurgical testing to determine the
recoverability of gold within that resource.
Rare Element's plans for 2011 include completion of metallurgical tests of the
Smith deposit mineralized rock, continuation of geochemical and structural
reviews, conducting a limited geophysical survey (CSAMT), and rotary and core
drilling to define the lateral limits of known gold resources at Smith, Taylor,
and Carbon, which are open in several directions, as well as deeper and
outlying targets.
Drill-hole Database
Compilation and Resource Estimation
Following compilation of the Sundance drill-hole database, O.R.E. analyzed the
data to determine the size, shape, and internal continuity of the three
principal gold deposits in order to calculate inferred resources. Alan C.
Noble, P.E., is the Principal Engineer of O.R.E. and is an independent Qualified
Person for the purpose of Canadian NI 43-101, Standards of Disclosure for
Mineral Projects. These wireframe models will also be utilized to design the
optimal placement of new drill holes to be completed in 2011.
The East and West Breccias of the Smith deposit were discovered by FMC
(1982-1986), and subsequently explored by International Curator and Coca Mines.
In 1991, Coca estimated a historical resource of 8.2 million tons (7.4 million
metric tonnes) at a grade of 0.02 ounces of gold per
ton (0.68 g/t) (not NI 43-101compliant) for the two deposits. The new O.R.E.
resource estimate updates this historical resource to the current standards and
incorporates the drilling done during the past several years by Rare Element
and Newmont Mining Company. The new Smith resource includes 25.2 million tonnes grading 0.50 ounces of gold/tonne
at a cutoff of 0.15 opt (Table 1). Resource estimates for the Taylor and Carbon
areas are also shown in Table 1.
* The
Company is not treating the historical estimate as NI 43-101 defined resources
verified by a qualified person, and the historical estimate should not be
relied upon.
Table 1: Inferred gold resources estimated by O.R.E. for the Sundance
project
Click to Enlarge
"The Sundance gold project is progressing well and the new resources
estimate will be used to guide a subsequent planned drilling program. Our 2011
exploration program will focus on expanding zones of greater than 1 g Au/t
mineralization to enhance future economic evaluations. This resource is
provided for information and the Company believes that subsequent work on the
gold targets may provide an asset that has the potential to substantially
increase in size and value to the Company in the future." stated Don Ranta, President of Rare Element.
Drill-hole Results from
the 2010 Program
The Company announced assay results from the 2010 rotary (reverse circulation)
drill program in three previous press releases (dated September 21 and November
15, 2010 and January 3, 2011). Thirty-four rotary drill holes containing 21,605
feet (6,585 m) were drilled during 2010 on near-surface targets within oxide
zone mineralization at the Smith, Carbon, and Taylor target areas (Figure 1).
Significant intercepts from the 2010 program are listed in Table 2. Gold
exploration activity during 2010 focused on: 1) detailed definition of known
gold-mineralized targets with in-fill drilling, 2) step-off drilling from known
mineralization, and 3) discovery of gold mineralization in new peripheral gold
targets.
Figure 1: Plan map showing the location of the Smith, Carbon, and Taylor
gold target areas within part of Rare Element Resources' Sundance Property. The
gold targets surround the Bull Hill REE deposit. The drill hole
collars from the 2010 program are shown in yellow. Drill-indicated
gold-mineralized areas that contain greater than 300 ppb (>0.3 g/t) gold for
each target area are shown as ruled polygons.
Click to Enlarge
Smith Gold Target
Highlights of the drilling program at Smith include
the following gold assay results:
- SUN 60 85.4 m @ 0.89 g/t,
including 44.2 m @ 1.3 g /t
- SUN 62 143.3 m @ 0.74 g/t,
including 15.2 m @ 1.6 g/t and 15.2 m @ 1.4 g/t
- SUN 64 77.7 m @ 0.66 g/t,
including 7.6 m @ 1.7 g/t
Eight holes were drilled along the
main trend of the Smith gold zone (Figure 2). The primary host rock is heterolithic breccia that is now
traced along strike for nearly 1000 meters and down dip for 500m. In drill hole
SUN-060, gold mineralization was penetrated along strike to the northwest in
peripheral wall rock, which is now recognized as a new host rock for gold
mineralization at this target. SUN-062 effectively bridges a gap between the
historic "Smith East and Smith West" gold-mineralized breccias, where
a historical resource (non NI 43-101 compliant) was defined previously by FMC
Gold, International Curator, and Coca Mines. SUN-064 tests a nearer surface
zone along strike to the southeast. SUN-069 tests a northeast-trending
structure 800m distant from the main Smith zone in a newly discovered off-axis
zone hosted by sandstones of the Deadwood formation. Assays include 27.4m @
0.49 g Au/t, including 9.1m @ 0.89 g/t.
Figure 2: Plan map of Smith resource area showing location of 2010 angle
drill holes, 2009 NMC holes, and older vertical holes. Level plans are outlines
around drill intercepts containing greater than 0.3 g/t (300ppb) gold.
Click to Enlarge
Figure 2 illustrates the general shape of the gold-mineralized zone through a
succession of level plans that outline the mineralization at successive depths.
Note that mineralization in the near-surface level plan (6200 feet elevation)
occurs furthest to the southwest, and each succeeding deeper level plan is
located further to the northeast. Figure 2 indicates that the gold-mineralized
zone has an overall northwesterly strike and a steep dip to the northeast. A
sectional view of the deposit is shown in the LeapFrog
image in Figure 3. The deposit shape is coincident with a resistivity boundary
shown in the CSAMT image. This remote sensing technique is a tremendous aid in
guiding our continued exploration on the Sundance property.
Figure 3: Section of the Smith deposit area showing drill hole
traces and interpolated 300 ppb gold grade shell on a base of CSAMT resistivity
illustrated by a LeapFrog image. The Smith gold
deposit is currently traced along strike for a distance of 1000m and 500m down
dip. Note the coincidence of the mineralized body and the sharp resistivity
boundary, which is used as a guide for targeting. Higher gold grades of up to 4
ppm are seen at the lower reaches along this contact.
Click to Enlarge
The drilling at the Smith target shows good continuity of the known gold
mineralization and provides sufficient drill hole
density for the inferred resource estimate. The discovery of good mineralization in the gap between the two historic
gold mineralized areas in the East and West Breccias helps to demonstrate and
extend that continuity.
Carbon Gold Target
Highlights of the drilling program at Carbon include the following gold assay
results:
- SUN-071 of 0.52 g/t Au over
68.3m (includes 0.96 g/t over 12.2m)
- SUN-072 of 0.59 g/t Au over
79.3m
- SUN-077 of 0.41 g/t Au over
51.8m
Eight drill holes were completed
along the main trend of the Carbon gold zone. Previous exploration drilling
focused on crackle breccia, which occurs at the
margin of the Carbon diatreme (Figure 3). However,
drilling in 2010 discovered new areas of gold mineralization within the diatreme, including intercepts in SUN-071 of 0.52 g/t Au
over 68.3m (includes 0.96 g/t over 12.2m) and in SUN-072 of 0.59 g/t Au over
79.3m. It is now apparent that the Carbon diatreme
itself is a source of gold mineralization, rather than gold merely hosted by
prepared ground at the diatreme margin. Additional
drilling on the east side of the diatreme (SUN-077)
was designed to test an area of magnetite-destructive alteration and soil gold
anomalies, similar to the pattern seen in the Carbon resource area. SUN-077
represents a new gold target area 500m to the east-northeast, with an initial
intercept of 0.41 g Au/t over 51.8m (Figure 4). This relationship suggests
potential for additional gold resources within and along the margin of the
Carbon diatreme, The diatreme margin can be
tracked with airborne magnetics and coincident trace
element soil anomalies.
Figure 4: Plan map of Sundance Property -- Carbon gold resource area showing
location of 2010 drill holes (green collars) and footprint of gold
mineralization containing drill intercepts greater than 300 ppb gold. (Drill
hole SUN-077 is off the map to the east-northeast.)
Click to Enlarge
Figure 5: Plan map of part of Sundance Property -- Greater Carbon gold
resource area showing location of peripheral 2010 drill holes (yellow collars)
and drill inferred gold-mineralized areas (> 300ppb gold) on a base map of
airborne magnetics (RTP Phase). Initial drill hole
into new mineralization discovered in SUN-077 occurs in an area of low
magnetism, similar to the main Carbon resource area on the south side.
Click to Enlarge
Taylor Gold Target
Highlights of the drilling program at Taylor include the following gold assay
results:
- SUN-085 - 0.56 g/t over 71.6m.
- SUN-089 - 0.67 g/t over 137.2m
(includes 3.05 g/t over 12.2m)
- SUN-090 - 0.67 g/t Au over
192.1m (includes 1.34 g/t Au over 62.5m from the surface)
- SUN-091
- 0.45 g/t over 56.4m
- SUN-092
- 0.42 g/t over 64.0m
Drilling conducted to define an
inferred resource at the Taylor gold target area in 2010 included a total of
eight drill holes (SUN-085 through SUN-092). The program was terminated
prematurely owing to inclement weather. The Taylor drill hole distribution is
shown in Figure 6, along with a polygon depicting the known extent of
drill-inferred gold intercepts greater than 300 ppb (>0.3 g/t) Au over
significant widths. The gold mineralization at Taylor is a hovering plume-like
mass hosted by Tertiary alkaline intrusions and lesser Cambro-Ordovician
sandstones of the Deadwood formation. The mineralization generally extends from
the surface to depths of about 400 feet (125m). Representative grades within
the plume, based on results from the 2010 program, are shown in Table 1 and
include 0.56 g/t over 71.6m (SUN-085), 0.67 g/t over 137.2m (SUN-089), 0.45 g/t
over 56.4m (SUN-091), and 0.42 g/t over 64.0m (SUN-092). In addition, SUN-089
contains a high grade interval of 3.05 g/t over 12.2m between 515-555 feet
(157-169.2m), which may indicate proximity to a feeder structure. Drill hole
SUN-090 tested another potential feeder structure, marked by a pronounced
resistivity high (2010 CSAMT survey) that extends from depth to intersect the
gold-mineralized plume. Gold assay results from SUN-090 contain 0.67 g/t Au over
192.1m, including a high-grade portion with 1.34 g/t Au that extends from the
surface to a depth of 62.5m.
Figure 6: Plan map of the Taylor gold resource area showing the location of
2010 drill holes (white collars) with respect to previous drilling, and the
footprint of gold mineralization defined by drill intercepts greater than 300
ppb (>0.3 g/t) gold over significant widths.
Click to Enlarge
Higher-grade gold zones seen in drill holes SUN-089 and SUN-090 attest that
higher-grade gold zones are present in the Taylor system,
and the interpreted continuity of these zones will be used as vectors to
further define their extent with additional drilling. An untested CSAMT
resistivity anomaly west of the known gold mineralization at Taylor could
represent the roots of a second satellite shoot of the gold mineralization.
Another key result from this year's program is the interpretation of the
'hovering' aspect of plume-like portions of both the Taylor and Carbon gold
systems, where deeper intersections in drill holes can be in barren rock
underlying anomalous gold at shallower depths within the plume.
Geophysical Survey --
CSAMT
A CSAMT (Controlled Source Audio-Magnetotelluric
Technique) survey along four lines totaling 8.6 line kilometers was designed by
Condor Consultants and completed by Zonge Engineering
in August to cover the Taylor gold and Bull Hill REE targets. This type of
survey was successful in defining a relative conductive structure in the Smith
gold zone that harbors the bulk of the known gold mineralization there. The
results of this year's survey will be utilized for further definition drilling
of the Taylor gold resource and the search for high-grade feeder zones, as well
as guiding further exploration of carbonatite-hosted
REE mineralization at Bull Hill.
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 a qualified person for the purposes
of National Instrument 43-101 standards of disclosure for mineral projects of
the Canadian Securities Administrators. Dr. Clark has direct experience with
the project dating back to 1986. Mr. John Ray, who has experience with the gold
project continuously from 2004 through 2010, managed the geological, drilling,
and sampling program on the Sundance gold project during this period of time.
A detailed QA/QC program was implemented by the Company for the 2010 drill
program. The 2009 QA/QC program was organized by Dr. Jeffrey Jaacks. Dr. Jaacks, Dr. Clark,
and Mr. Ray have verified the 2010 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.
Table 2: Summary of significant gold mineralization in 2010 drill holes
Click to Enlarge
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 is
being conducted as the Sundance project.
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, additives in
ceramics and glass, petroleum cracking catalysts, and a number of critical
military applications. China currently produces more than 95% of the 130,000
metric tonnes of rare-earths consumed annually
worldwide, and China has been reducing its exports of rare earths each year.
The rare-earth market is growing rapidly, and is projected to accelerate if the
green technologies are implemented on a broad scale.
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) 681-4236 mtbrown@pacificopportunity..com .
Donald E Ranta, (604) 681-4236 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.