Rare Element to acquire Nuiklavik REE prospectRare Element to acquire Nuiklavik REE prospect
2010-01-07 17:05 ET - News Release
Mr. Donald Ranta reports
RARE ELEMENT ACQUIRES NUIKLAVIK REE PROJECT IN LABRADOR, CANADA
Rare Element Resources Ltd. has arranged the acquisition of the Nuiklavik rare-earth-element (REE) prospect from Altius Resources Inc. The property is located approximately 25 kilometres from tide water and 50 kilometres from the community of Hopedale, Labrador.
Altius initiated the project in 2006 to target volcanic-hosted uranium-type deposits. Previous work in the 1980s and 1990s by the Geological Survey of Newfoundland and Labrador included regional lake-sediment sampling, mapping, and various follow-up geochemical studies targeting lake-sediment anomalies. The GSNL identified and documented 24 yttrium-zirconium-niobium-REE, fluorine and base-metal occurrences at Nuiklavik and prepared reports which investigated REE enrichment within the Nuiklavik volcanic rocks.
The geology underlying the Nuiklavik property comprises Precambrian peralkaline volcanic and plutonic rocks. The area is geologically similar in age and geochemical character to the Strange Lake peralkaline complex, which hosts the Strange Lake REE deposit. Both the intrusive suite at Nuiklavik and the Strange Lake complex comprise circular-shaped features of peralkaline granite with elevated Zr-Y-Nb and REE geochemical signatures.
More recent work by Altius included a high-resolution helicopter-borne magnetic and radiometric survey with follow up geological mapping and prospecting. This work by Altius over two field seasons resulted in the discovery of numerous additional uranium and rare-earth occurrences in both volcanic rocks and felsic dikes which cut the overlying volcanic package. Limited sampling of the felsic dikes and other felsic intrusive rocks by Altius yielded up to 1.4 per cent zirconium oxide, 1.27 per cent yttrium oxide, 1.15 per cent niobium oxide, and 1.1 per cent total rare-earth oxides with heavy REE representing up to 67 per cent of the total rare-earth-oxide component.
Rare Element has agreed to acquire 100 per cent of the project for the payment of 200,000 common shares and the granting of a gross overriding royalty of 2 per cent to Altius. The transaction is subject to other regulatory approvals. Rare Element plans to find a partner to explore this project as it did with the Eden Lake REE project.