Mr. Jim Clucas reports
SEARCH MINERALS ANNOUNCES FOXTROT PHASE III DRILL PROGRAM TO 400M DEPTH: WILL ADD TO NI 43-101 RESOURCE ESTIMATE EXPECTED Q4, 2011
On Oct. 1, 2011, a third-phase drill program of 10,000 metres, budgeted at $2.25-million, commenced at the Foxtrot prospect of Search Minerals Inc. and its wholly owned subsidiary, Alterra Resources Inc., in the Port Hope Simpson rare-earth-element district, southeast Labrador. The phase 3 drill data will provide data to extend the resource estimate to a 400-metre depth. The company expects that an NI 43-101-compliant resource estimate for the Foxtrot prospect, with data to a 200-metre depth from phase 1, will be delivered in fourth quarter 2011.
Drill program update
The phase 1 program at the Foxtrot prospect consisted of 23 holes, drilled in late 2010 and early 2011 (refer to news release of May 26, 2011). REE-zirconium-yttrium-niobium mineralization was intersected at depths of 50 metres and 100 metres along a two-kilometre strike length. Mineralization consists of fergusonite, allanite and zircon in metamorphosed fine-grained felsic volcanic rocks.
The phase 2 program (20 holes) was completed in the summer of 2011 (refer to news release of Aug. 30, 2011). It was designed to intersect mineralization at depths of 50 m, 100 m, 150 m and 200 m along a 500-metre strike length. Mineralization was intersected in all holes, and the grades and geology of the mineralization remain relatively constant throughout the 500 m of strike length.
The phase 3 program, consisting of approximately 25 holes, is designed to intersect REE-Zr-Y-Nb mineralization at depths of 200 m, 250 m, 300 m, 350 m and 400 m along a 500-metre strike length. A total of approximately 10,000 metres are planned at an estimated cost of $2.25-million. This program is expected to be completed in first quarter 2012 and will provide further data for an NI 43-101-compliant resource estimate update expected in second quarter 2012.
Jim Clucas, president and chief executive officer of Search Minerals, stated: "With the combination of Search's healthy treasury, the consistency and uniformity of the REE mineralization drilled to date at Foxtrot, along with the favourable location of the project, I believe that Search can advance this project at a pace which is superior to most other rare earth exploration companies currently in play. Foxtrot's greatest asset would appear to be dysprosium, which is forecast to continue to be one of the higher-priced REEs. Dysprosium is also one of the more versatile REEs, being used in magnets, ceramics, lasers and nuclear applications."
Mr. Clucas further noted: "The Foxtrot prospect is only one of 14 discoveries made on Search's large land position in Labrador in the summer of 2010. We expect to announce the results from our aggressive summer 2011 exploration program in the near future."
Springdale Forest Resources Inc. (diamond drilling division) has been awarded the contract for a two-drill, 10,000-metre, NQ diamond drilling program targeting REE-Zr-Y-Nb mineralization at the Foxtrot prospect in the Fox Harbour belt. Holes (45-degree angle) will be spotted to intersect steeply dipping (plus-or-minus-90-degree dip) surface mineralization at depths of 250 m to 400 m. The Foxtrot prospect occurs approximately 0.5 km from an all-season, maintained, gravel highway. Access to the drill site is by tracked vehicle. The prospect is located nine km west of the deepwater port community of St. Lewis (Fox Harbour).
A representative sample from the Foxtrot prospect has been submitted to SGS Canada Ltd. for metallurgical study. A mineralogical and preliminary metallurgical report is expected in fourth quarter 2011.
The field/research program at the Foxtrot prospect is being completed to support the NI 43-101 report. A detailed ground magnetic survey map, detailed channel logs and geochemical data, and a detailed outcrop geology map have been produced. The Fox Harbour mineralized belt regional exploration program is continuing and includes a regional ground magnetic survey, channel sampling and logging, sampling and prospecting, and geological mapping. The target of the regional program is Foxtrot-like REE-Zr-Y-Nb mineralization within the 35-kilometre- long Fox Harbour volcanic belt.
Exploration program update
The Search ground holdings in the Port Hope Simpson REE district (926 square kilometres) form a 135-kilometre-long and four-to-12-kilometre-wide belt and consist of 3,704 claims in 66 licences. To date, a total of eight REE prospects have been discovered in the district, including: Rock Rolling Hill, Rattling Bog Hill, Piperstock Hill, Southern Shore, Toots Cove, Pesky Hill, High REE Island and Foxtrot. The Foxtrot prospect occurs in the Fox Harbour mineralized belt. Piperstock Hill, Southern Shore, Toots Cove and Pesky Hill occur in a 13-kilometre mineralized belt known as the High REE Hills. Both the Fox Harbour and High REE Hills mineralized belts are considered very prospective for REEs.
Qualified person
Dr. Randy Miller, PhD, PGeo, vice-president of exploration, is the qualified person responsible for the technical content of this press release. The company endeavours to meet high standards of integrity, transparency and consistency in reporting technical content, including geological and assay (for example, REE) data.
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