- 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
TSX-V: RES
VANCOUVER, May 26 /PRNewswire-FirstCall/ - 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)
-------------------------------------------------------------------------
Oxide Transitional Sulfide Total
Cutoff ----- ------------ ------- -----
Grade -----------------------------------------------------------------
(1),(3) Tons Grade(1) Tons Grade(1) Tons Grade(1) Tons Grade(1)
-------
-------------------------------------------------------------------------
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 6.55
-------------------------------------------------------------------------
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
----------------------------------------------------------
Total REO Content
Cutoff ----- -----------
Grade(1),(3) Tons Grade(1) 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 (ft(3)/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 Ce(2)O(3) 1.66 1.62 1.61 1.63
%Lanthanum Oxide La(2)O(3) 1.06 1.08 1.11 1.08
%Neodymium Oxide Nd(2)O(3) 0.52 0.36 0.29 0.41
%Praseodymium Oxide Pr(2)O(3) 0.16 0.14 0.12 0.14
%Samarium Oxide Sm(2)O(3) 0.088 0.078 0.074 0.081
%Gadolinium Oxide Gd(2)O(3) 0.045 0.042 0.037 0.042
%Yttrium Y(2)O(3) 0.032 0.036 0.021 0.028
%Europium Oxide Eu(2)O(3) 0.021 0.019 0.017 0.019
%Dysprosium Oxide Dy(2)O(3) 0.018 0.012 0.011 0.014
%Terbium Oxide Tb(2)O(3) 0.0075 0.0052 0.0043 0.0059
%Erbium Oxide Er(2)O(3) 0.0020 0.0018 0.0017 0.0019
%Ytterbium Oxide Yb(2)O(3) 0.0012 0.0011 0.0010 0.0011
%Lutetium Oxide Lu(2)O(3) 0.00016 0.00014 0.00013 0.00014
%Holmium Oxide Ho(2)O(3) 0.0010 0.0008 0.0008 0.0009
%Thulium Oxide Tm(2)O(3) 0.00015 0.00013 0.00012 0.00014
-------------------------------------------------------------------------
1. REO (rare-earth oxides) include Ce(2)O(3), La(2)O(3), Nd(2)O(3),
Pr(2)O(3), Sm(2)O(3), Gd(2)O(3), Y(2)O(3), Eu(2)O(3), Dy(2)O(3),
and Tb(2)O(3), listed in relative order of decreasing abundance in
the deposits, plus minor quantities of other REO (Table 3).
2. The resource estimate is classified as Inferred Mineral Resources as
defined by CIM and referenced in NI 43-101.
3. 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.
4. 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
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
To view Figure 1, please see link below:
http://files.newswire.ca/675/RES_Figure_1_Bull_Hill.doc
SOURCE Rare Element Resources Ltd.