Interesting find...Looks like the new drilling permits for GM are on the way...AND we're looking for a JV partner!
The bolding is mine...note Anthony Mariano has already worked on this project back in '93. Like I stated earlier, this guy's been everywhere man, he's like Father Time!! LOL
Mineral Claim
JV Opportunity....
The Gallinas Mountains are an area of igneous volcanic intrusive activity situated in Lincoln County, New Mexico (about 100 miles SE of Albuquerque). This igneous activity has penetrated older pre-cambrian rocks as well as younger overlying sandstone formations. Rare Earth mineralization was first noted in 1943 by the US Geological Survey.
Studies by the US Bureau of Mines dating back to 1946 identify breccias pipe zones as highly attractive targets for the presence of Rare Earth minerals such as Cerium, Lanthanum and Neodymium and Praseodymium. These breccias zones can be up to 300 meters in diameter and represent areas where extreme pressure related to the igneous intrusions blew out of the earth’s crust. A series of these breccias zones has been identified in the project area. (1)
The most comprehensive report ever prepared on the area was done in 1993 by US Bureau of Mines Geologist, Russell Schreiner with extensive input from the eminent REE scientist Tony Mariano. This report is quick to point out that in 1980, Molycorp drilled 2 deeper holes on the eastern flank of the Gallinas Mtns. Schreiner sums up this activity by noting "…drilling by Molycorp has shown that high grade fluorite-bearing, REE mineralized rock ( >5%) is present at depths over 400 feet and there is no reason to believe the grade decreases with depth". In fact, the Molycorp results do show a 7 foot intersection of REE mineralization grading 5.2%.
A grab sample taken from an old prospect pit by Strategic Resources in this same general area supports the statements made by Schreiner in his report. A drilling permit has been obtained for this particular location.
In the NW part of the Gallinas Mtns is another breccia feature called the M&E Prospect. Old prospect workings are visible at this location and grab samples analyzed by Schreiner show up to 5% Rare Earth oxide content. (2) Drill permits are pending at this location and are expected by October, 2011.
Given the small size of Strategic Resources and the relative potential magnitude of this Gallinas Mountains project, management has decided to seek a JV partner to help fund the costs of some deeper drilling at these brecciated pipe zones. The Gallinas Mountains are situated close to paved roads, towns and railways making them an ideal exploration location. The demand fundamentals for REE are well understood (and do not bear repeating here). These fundamentals remain solidly intact despite the current so called financial crisis with the USA very much in need of domestic sources of Rare Earth.
Terms of a JV arrangement are not rigidly fixed at this point. It is however anticipated that drilling of a single deeper hole to ~1200 feet could cost in the area of $125,000. A JV partner would be expected to commit to covering the costs of drilling 2 such holes at a minimum. For this financial input the partner would earn a suitable percentage interest in the Gallinas Mountains project.
Here's where I found this information: Investing Success
Good luck all,
Seven