RE: REE news out! The Japanese government foots the bill for 66% of exploration costs. Presumably Mitsui is in there somewhere with big machines and trucks doing heavy the heavy lifting. Not surprising that since anything in this release has to be approved by the partners, so one would expect that, given the highly sensitive and competitive nature of the global REE chess game going on among the Japanese, Chinese, Koreans and Germans, that the language a release like this would be extremely circumspect and conservative, yet since the results are material they have to put something out, even if they would prefer to keep things mum. The real interesting thing is that this appears, from the scant data we have, to be a type of deposit that is rare outside of China/Mongolia where it contains heavies with good "enrichment," is near surface so that the ore can be virtually scooped up and recovered simply--without nasty radioctivity, which seems to be a problem in some of the British Columbia deposits that initially enjoyed much excitement a year ago or so.
Phase I drilling in 2011, within the approximately 3.2 km diameter circular basin, encountered a surficial horizon of REE-bearing kaolinite/halloysite clay ranging from 3 to 26 meters thick. Analysis of core from these holes indicates this clay contains comparable levels of total REE's to its Chinese counterparts as well as similar Heavy REE enrichment. Very low radioactivity is associated with clays at Chambe, a potentially positive metallurgical attribute. Initial leach testing conducted at the Corporate R & D Center of Mitsui Mining & Smelting Co., Ltd indicates the recovery of REE's may be possible through simple leaching of this clay using simple ionic solutions like those employed in China, followed by precipitation of REE carbonates.
Phase II work encompasses drilling of 167 shallow core holes on a staggered 200 meter grid across Chambe Basin. MINDECO will undertake extensive metallurgical testing of clay samples from these holes to determine the leachability of REE's and the quality and composition of resulting REE carbonate concentrates. In addition to drilling, extensive baseline environmental work is underway including study of how indigenous vegetation could be regenerated to Chambe Basin as part of future development of the site. Work completed in 2012 should advance the Chambe Basin REE project toward prefeasibility by mid-2013. The total budget for Phase II work is approximately US$4 million of which Gold Canyon contributes 33%.