RE: RE: RE: The Market Likes It!There seems to be a number of posters still trying to understand the REE space. While I am not an expert, I do have a basic understanding and will attempt to share what little I know with the board. The best for eveybody though would be for John Kaiser to wade in and provide a write up on what this all means for GMA.
Anyway here it goes...
Geomega Resources , drills in their very first hole 1.24% TREO over 480 metres including 2.03% TREO over 39.4 metres. I agree with nomomoney that these numbers don’t mean a lot as a stand alone item.
So the next thing to consider is what we can infer about the potential size of the Montviel carbonantite complex based on what has been made public so far. Well, before we get into this, one interesting feature of most REE resources is that generally REE mineralogy and grade run very consistent in a deposit, so let’s assume that is the same case here.
We do know that the 5 holes drilled have been for a total of 2500m, Assuming again good continuity, this means 500m deep in each hole. Based on the locations of the other holes in relation to the first reported hole, MVL-01, the measurements to the locations of these holes equate to an area measuring 335m x 300m. When you multiply that surface area by a 500m average depth, it equals to a block of rock of approximately 110,000,000 tonne. So on a very, very, rough basis, assuming all the holes that are drilled to date hit similar grades and depths as the hole (MVL-01) reported today, this could already be shaping up to very large resource.
The important factor and most pressing question now is to find out the value of the in-situ REE. That will have to come with time and a lot more work, with the focus being the determination of the specific grades and width of the various light, medium and heavy rare earth elements. This will be absolutely integral to success . Additionally, a study to figure out the recoverability of the REE is also an extremely important step as very good recovery rates will be required to get the value out of the rock.
So as we can see there are many questions yet to be answered, and much work to do, that is for sure, but it does seem that GMA may be off to a reasonably good start towards proving up a very large and possibly rich REE resource.
Price of GMA today = $1.30 with a market cap of just under $ 19,000,000.00
Now here are some details of a couple of very successful REE companies to consider. While I am not implying or saying GMA will end up as successful as these two, I am pointing out that based on some very preliminary basic similarities (IE: Possible tonnage and initial grade), GMA does have some good potential….have a look….
Avalon Rare Metals on June 21, 2010 released a prefeasibility study (PFS) for Nechalacho with a probable reserve of 12,010,000 tonnes of 1.7% TREO with zirconium, niobium and tantalum by-product credits. The combined indicated and inferred resource for AVL’s two REE zones totalled at that time 197,292,000 tonnes which had an in situ value of US $126 billion. Heavy REE are approximately between 20-30% of the total TREO reported
Price of AVL today = $7.73 with a market cap of $ 714,000,000.00
Quest Rare Minerals Ltd released a preliminary economic assessment (PEA) on September 9, 2010 that highlighed an inferred resource of 40.4 million tonnes of 1.161% TREO . The combined indicated and inferred resource for QRM's B zones totaled at that time 114,8232,000 tonnes which had an in-situ value of US $40 billion. Heavy REE are approximately between 50-60% of the total TREO reported
Price of QRM today = $6.27 with a market cap of $ 350,000,000.00
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So there you have it. I hope this has been somewhat useful and beneficial, but if any of you are serious about learning more about the REE sector, I encourage you to subscribe to John Kasier and read the tremendous
articles that he has produced on rare earths and the various REE junors.. (Kasier Online Reserach)