2011: Rare Earth Metals Secures Highly Prospective New Rare Earth Prospect In Sudbury Area, Ontario
Thunder Bay, ON – Rare Earth Metals Inc. (“Rare Earth Metals”, “RA” or the “Company”) (TSX-V: RA; OTCQX: RAREF) is pleased to report that it has finalized its negotiations to acquire the highly prospective Lavergne rare earth prospect in Springer Township, Ontario. In addition the Company is pleased to announce that an airborne radiometric and magnetic survey has begun on its Coldwell property near Marathon, Ontario.
Lavergne Prospect: The Company is pleased to announce that it has completed agreements to acquire the Lavergne rare earth prospect in Springer Township, located immediately north of the town of Sturgeon Falls and 80 km east of Sudbury, Ontario. Two separate option agreements have been finalized for the patented mineral rights and surface rights covering the Prospect. A third option agreement has been negotiated for a package of unpatented mining claims contiguous to the patented ground.
The newly acquired property covers a historic showing previously drilled in 1969 by Geophysical Engineering and Surveys Ltd. of North Bay, Ontario. Partial drill results from the four-hole program included 0.98% Rare Earth Oxide (REO) over 112.7 meters which included a higher grade section of 1.22% REO over 63.3 meters (DDH-L-69-1). (Reference-Internal Report on the 1969 Diamond Drilling Program #.382 N.B.) True thicknesses of the mineralized intervals have yet to be determined. A second drill hole (DDH-L-69-4) completed 180 meters to the north along strike from DDH-L-69-1 intersected two separate mineralized zones which included 1.33% REO across 19.8 meters and 1.36% REO across 27.4 meters.
Additional trenching had extended the REE bearing zone to the south for approximately 600 meters where the REE mineral, bastnaesite, was identified throughout the mineralized sections. The 1969 assaying revealed that appreciable amounts of cerium up to 3.25%, lanthanum up to 1.33%, neodymium up to 0.70%, and europium up to 0.045% were present, however, only a few samples were assayed for all Rare Earth Elements. The drilling and trenching carried out at the time indicated that the mineralization is hosted within large areas of syenite with carbonatized and brecciated granite gneiss. The reader should be cautioned that these historic results have not been verified by the Company and are historic in nature, so should not be relied upon.
The Company is currently completing a compilation of the available data, and a work program, including airborne radiometric and magnetic surveying, gridding, mapping, sampling and drill testing will commence immediately. The mineralized zones will be subjected to modern analytical techniques in order to better understand the tenure and distribution of the full suite of Rare Earth Elements. The Company believes this is an excellent opportunity to get in early on an exciting new rare earth play, located in an area of excellent infrastructure and 80 km east of the mining and smelting centre of Sudbury.
“We are very excited to have acquired the Lavergne property as it has great potential to host a rare earth deposit”, commented Michael Stares, CEO and President of Rare Earth Metals Inc. “Of particular note is the enrichment of the (HREE) Europium in the system. With little or no other sampling for the other (Heavy) rare earth elements, we look forward to getting our exploration program started.”
Terms of the initial agreement to option the Mineral Rights to the 128 hectare patent, covering the prospect, include staged payments of $217,000 over three years, including $36,000 on signing. The owners will retain a 1% NSR (Net Smelter Royalty) and the Company will have the right to purchase half of this for $1,000,000. A second agreement was also completed to purchase the Surface Rights to the eastern half of the Patent (64 hectares) for a total of $150,000, in two payments. A separate third agreement has also been negotiated with Zimtu Capital Corp. and two private prospectors (the “Optionors”) to option a total of 40 unpatented claim units totalling 647 hectares adjacent to the above-described Patent. Terms of the third option agreement include total payments of $200,000 and 2,000,000 shares over four years, including initial payments of $50,000 and 500,000 shares. The Optionors will retain a 2% NSR on the 40 unpatented claim units property with the Company having the right to purchase half of this for $1,000,000. This agreement is subject to TSX approval.
Coldwell: The Company is also pleased to announce its plans for the Coldwell property. The Coldwell property covers the central part of the Coldwell Alkaline Complex (North America’s largest Alkaline Complex) located on the north shore of Lake Superior, near Marathon, Ontario. Infrastructure is well established within kilometers of the property with a major highway, railway and port. A 1500 kilometer helicopter-borne airborne radiometric and magnetic survey awarded to Geo-Data Solutions (GDS) Inc. of Laval, Quebec is underway and is scheduled to be completed by mid-June. A follow–up exploration program to evaluate the 12 known REE-Nb occurrences, as well as anomalous airborne survey radiometric anomalies and lake bottom sediment anomalies is scheduled for the summer of 2011. Two large (2 – 4.6 km long by 1 – 2 km wide) areas within the central region of the Coldwell property returned anomalous REE values from a previous lake bottom sediment survey completed by Pacific Northwest Capital Corporation in 2008. Values in Anomaly A range from 121 ppm up to 697 ppm Lathanum and between 33 ppm up to 247 ppm Yttrium. Values in Anomaly –B range between 94 ppm up to 328 ppm Lathanum and between 35 ppm up to 77 ppm Yittrium. A map of the location of the lake bottom sediment anomaly areas is available on the Company’s website at www.RareEarthMetals.ca.
Paul Nielsen, PGeo, is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical information forming the basis for release.
About Rare Earth Metals Inc.
Rare Earth Metals is a well-funded company with a focus on exploring for Rare Earth Element deposits. The Company’s shares are listed on the TSX-V exchange under the symbol RA and the OTCQX exchange under the symbol RAREF. The Company presently has two advanced projects in Ontario and Newfoundland and Labrador, both exhibiting multi element potential (REEs, Niobium, Beryllium, Zirconium and Iron Ore) and proximity to available infrastructure. Its flagship properties are the Clay-Howells Prospect and the Red Wine Project. The Company has recently acquired additional properties in the Coldwell Complex near Marathon, Ontario and the Lavergne-Springer REE Prospect near Sturgeon Falls, Ontario. Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under the Company’s profile at www.sedar.com. For more information please visit the Rare Earth Metals website at www.rareearthmetals.ca.
ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS INC.:
President and CEO
“Neither the 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.”
This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s filings that are available at www.sedar.com.
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Rare Earth Metals Inc.
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Phone: (807) 623-6840
Fax: (807) 623-9526
Phone: (807) 623-6840
Cell: (604) 741-4150
Fax: (807) 623-9526
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