Rare Earth Metals Releases New Resource Estimate For Clay-Howells
Inferred Mineral Resource: 8.5 Million Tonnes Averaging 0.73% TREO with 44.15% Fe2O3.
Thunder Bay, ON – Rare Earth Metals Inc. (“Rare Earth Metals”, “RA” or the “Company”) (TSX-V: RA; OTCQX: RAREF, PINK SHEETS: RAREF) is pleased to announce the first NI 43-101 compliant independent resource estimate for the Company’s 100% owned Clay- Howells iron – rare earth element (Fe – REE) Property in northwestern Ontario. The resource estimate was prepared by Tetra Tech Wardrop (Tetra Tech) of Toronto, Ontario who recommends that additional drilling be conducted to further investigate and develop the known Clay-Howells deposit and determine continuity of the carbonatite, mineralized syenite, and massive magnetite lithologies and Fe and REE grades.
- 8.5 million tonnes grading at 0.73% total rare earth oxide (TREO), 0.13% Niobium Oxide (Nb205) and 44.17% iron oxide (Fe2O3) at a 0.6% TREO cut-off grade in the inferred category
- 40.4 million tonnes grading at 0.48% TREO and 34.62% Fe2O3 within a larger 0.2% TREO gradeshell
- Calculation is based on over 5436 m of drilling in 18 holes and 1825 assay samples covering 700 meters of strike length to an average depth 280 meters
- Resource areas open along multiple directions and to depth
- Additional sampling, drilling, and specific gravity readings recommended for next phase of drilling
The Clay-Howells deposit is 100% owned by Rare Earth Metals, who purchased the patented mining and surface rights from the original vendors in 2009, and is ideally located north of Kapuskasing, Ontario close to industrial infrastructure and a mining oriented workforce. Since acquisition, the Company has been evaluating the Clay-Howells Magnetite Deposit for its REE potential, and this resource report is an important milestone in establishing a substantial mineral resource which will form the basis to further advance the project. Jack Lifton, a well-respected expert on REE economics and an advisor to the Company, recently completed a field visit to the project and provided an assessment of the deposit potential regarding the synergies of producing a magnetite concentrate with a Rare Earth Element (REE) and Niobium (Nb) by-product. His evaluation stated that “The Clay-Howells’ deposit represents an excellent opportunity to develop a “polymetallic boutique” operation in which one or more valuable products are able to subsidize the cost of others”. Mr. Lifton’s summary of the deposit is outlined in a previous press release dated July 19, 2011. Preliminary magnetic separation tests were carried out by Xstrata Process Support in September, 2010 after the initial drilling, and results from this work showed that there was a consistent upgrading of REE grade into the non-magnetic fraction. However, improvements in the recovery of the REE to the non-magnetic fraction require optimization and further test work. It should be noted that only limited mineralogy and metallurgical assessment has been carried out to date and detailed work would be needed to understand how well the various commodities could be separated.
“We are obviously very pleased with the results of this report which demonstrates the project’s potential to host a much larger Iron – REE deposit”, commented Mr. Michael Stares, President and CEO. “We believe we have only scratched the surface of this project and this resource calculation gives us the confidence to move forward. The property’s great infrastructure such as its proximity to roads and hydro also add to its potential to be a contender as we can fast-track the project to production if further evaluation warrants”.
Mineral resources were modeled by Tetra Tech and reported at eight different Total Rare Earth Oxide (TREO) cut-off grades, with a base-case resource estimated using a TREO cut-off of 0.6%. At this cut-off, Clay Howells hosts an Inferred Mineral Resource of 8.5 million tonnes grading 0.73% TREO, and 44.15% Fe2O3, with 10% of the TREO being the higher value HREO (heavy rare earth oxides).
Inferred Resource Estimate for the Clay-Howells Deposit
Rare Earth grades by individual rare earth oxides at the varying % cut-off are as follows:
Inferred Resource Estimate for the Clay-Howells Deposit by %REOs
- Light Rare Earth Oxides (LREO) includes: La2O3,Ce2O3, Pr2O3, Nd2O3, Sm2O3
- Heavy Rare Earth Oxides (HREO) includes: Eu2O3, Gd2O3, Tb2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3
- Total Rare Earth Oxides (TREO) includes: La2O3,Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3
- The resource estimate has been classified as an Inferred Resource based on drill hole spacing and sample population
- The effective date of the Resource Estimate is September 23, 2011
The Resource Estimate is based on:
- A database of 18 drill holes totalling 5,436 m of diamond drilling; of which 17 drill holes intersect the Clay-Howells deposit
- Samples were composited on 1.5 m lengths.
- Average specific gravity 3.44 g/cc
- Geological model constrained by carbonatite lithological domain and a 0.2% TREO gradeshell.
- Block model was estimated by Ordinary Kriging interpolation method on blocks 40m x 40m x 10m.
No recoveries have been applied to the interpolated estimates.
The “qualified person” as such term is defined in NI 43-101, who prepared the mineral resource estimates disclosed in this press release, is Mr. Paul Daigle, P.Geo. Mr. Daigle is an employee of Tetra Tech, and registered with the Association of Professional Geoscientists of Ontario. Mr. Daigle has reviewed and approved the sections of this press release relating to the resource calculation. Wayne Reid, P.Geo., is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the background information described in this 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
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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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