IMT is EMI on property agreement.. Thought Id correct that.
Mr. Donald Gee reports
ELECTRICMETALS SIGNS OPTION AGREEMENT TO ACQUIRE 75% INTEREST IN CHUCHINKA RAREEARTH ELEMENT PROPERTY, NORTH CENTRAL BRITISH COLUMBIA
ElectricMetals Inc. has signed an option agreement with International MontoroResources Inc., whereby Electric Metals can earn a 75-per-cent interestin Montoro's Chuchinka rare earth element property in north-centralBritish Columbia. The Chuchinka property is contiguous with the Wicheedaclaims of Spectrum Mining Corp. (a private company), which recentlyreported high-grade drill intercepts of 3.55 per cent rare earthelements over 48.64 metres.
Under the terms of the agreement, Electric Metals can earn a 75-per-centinterest in the Chuchinka property by paying $240,000, issuing 700,000common shares of the company and incurring $425,000 in explorationexpenditures over three years. The property is subject to a 2-per-centnet smelter return royalty, 1 per cent of which can be bought back for$1-million. A finder's fee will be paid in accordance with regulatorypolicy.
Chuchinka and Wicheeda properties
According to Spectrum Mining's paper presented at the fifth annualMinerals South Conference and Trade Show in October, 2009, Spectrumcompleted 11 diamond drill holes totalling 1,835 m at the Main zone atWicheeda. All 11 drill holes intersected significant rare earthmineralization, of which the best drill intercepts were a 48.64-metreinterval that returned 3.55 per cent REE, a 72.0-metre interval thatreturned 2.92 per cent REE and a 144-metre interval that returned 2.20per cent REE, in three separate drill holes. The 2009 drilling suggeststhat mineralization remains open in all directions, including to thenorth of Wicheeda, where the Chuchinka property is located.
Preliminary testing has determined that the Wicheeda mineralization ismainly monazite and a bastnaesite-synchisite mineral, which should beamenable to production of a high-grade marketable REE concentrate thatcontains 56 per cent REE by weight or a 60 per cent light REEconcentrate, should a flotation circuit be applied. These values wouldexceed the historic REE concentrate grades from the Mountain Pass minein California, the past producer of most of the world's rare earthelements.
Chris Taylor, MSc, PGeo, is the qualified person as defined by NationalInstrument 43-101. He is responsible for the accuracy of this newsrelease.