Neighbor movingBolero acquires rare earth property in B.C.
2010-03-22 03:36 ET - News Release
Mr. R. Duncan reports
BOLERO ACQUIRES LARGEST RARE EARTH PROPERTY SURROUNDING SPECTRUM MINING'S DISCOVERY IN BC
Bolero Resources Corp. has entered into an option agreement to acquire a 100% interest in the Carbonatite Syndicate Rare Earth Claim Group, surrounding Spectrum Mining Corporation's recently reported "Wicheeda" rare earth discovery.
The Carbonatite Syndicate Claim Group is 80 km northeast of Prince George, BC and comprises 43 mineral claims covering approximately 16,072 hectares, making it the largest contiguous land package adjoining the Spectrum Mining Corporation property.
Bolero Resources President and CEO, R. Bruce Duncan, stated "This is a very exciting time for Bolero Resources Corp. We feel Rare Earth Elements or REE's are the commodity of the future and Bolero has strategically positioned itself in what could potentially become the next major domestic Rare Earth area of interest. Management is continually evaluating additional projects that could add value to the company."
Spectrum Mining Corporation is a private company that recently reported significant Rare Earth Element mineralization on its Wicheeda carbonatite-syenite breccia intrusive complex rare earth discovery. (5th Annual Minerals South Conference)
Highlights from Spectrum's neighboring property included a 48.64 metre interval which averaged 3.55% rare earth elements ("REE"), a 72.0 metre interval that averaged 2.92% REE, and a 144 metre interval which averaged 2.20% REE in three separate drill holes. In 2009, eleven NTW diamond drill holes totaling 1835 metres were drilled in the "Main Zone" from two new drilling platforms on Wicheeda. All 11 drill holes intersected significant rare earth mineralization and the Wicheeda deposit remains open in all directions.
World recognized carbonatite-rare earth specialist Dr. Anthony Mariano has examined drill core samples as well as rock samples. He concluded that the Wicheeda mineralization is mainly monazite and a bastnaesite-synchisite mineral. A heavy liquid and magnetic separation study on a composite sample of Wicheeda drill core was able to produce a high grade REE concentrate that contained 56.09 wt. % REE.
The test indicated that the Wicheeda rare earth mineralization could produce a marketable concentrate. It was noted that applying a flotation circuit should produce a 60% LREE concentrate from Wicheeda that would exceed the concentrate grade of Molycorp's Mountain Pass which for over 40 years was the largest domestic supplier of rare earth concentrates in the world.
Terms of Agreement:
Bolero will issue to the vendor('s) 1,500,000 common shares of the company and 500,000 purchase warrants for common stock of the company within five days of TSX approval subject to a four month hold. The warrants are exercisable for a period of two years at a price of
.50. The vendor(s) will retain a 1% net smelter return (NSR) royalty under standard industry terms with a .5 % buyout for $500,000. Bolero will pay a finder's fee in accordance with the policies of the TSX Venture Exchange.
ABOUT RARE EARTH ELEMENTS (REE's)
REE's are critical components in many high-tech applications including hybrid motor vehicles, flat screen monitors, high-power magnets, consumer electronics (Blackberries, iPods, DVDs, cellular phones), green energy technology, fiber optics, super alloys for the aerospace and building industries, medical and dental lasers. Although demand for REE"s is growing rapidly, over 90 percent of global production is controlled by China, which has recently imposed restrictions on their exports.
With insatiable consumer demand for high tech electronics, clean energy mandates from countries around the globe and increasing military spending, it seems likely that demand will only rise as supplies are threatened.
Dr. Roger Steininger, Ph.D., CPG (AIPG), a Company Director, is the "qualified person" (as such term is defined by NI 43-101) responsible for the preparation of the technical information in this release.
In other corporate news, the Company announces that it has decided to relinquish its option on the Bald Butte Property situated near Marysville, Montana. Accordingly, no further cash payments or share issuances will be made by the company to the option holders. Bolero's decision to relinquish the option on Bald Butte Property came after careful consideration of a number if factors including the current molybdenum market. The company has retained its option on the Cannivan Gulch molybdenum property.
Bolero Resources Corp. is a Canada-based Molybdenum, Gold, and Rare Earth Element mineral development and exploration company. Our primary assets include: 100% interest in the Cannivan Gulch Molybdenum property located in Montana, USA; A 100% interest in twelve strategic claims in the Red Chris area of north-western BC, contiguous to Imperial Metals Corp (III.V); and 100% interest in 43 mineral claims prospective for Rare Earth's covering approximately 16,072 hectares, contiguous to Spectrum Mining Corporation in Northern BC. The Company is listed on the TSX-Venture Exchange under the symbol BRU, as well as the Frankfurt Exchange under U7N1. For more information, please visit the company's website.