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Posters talk of China buying rare earth resource

Stockhouse Editorial
0 Comments| November 27, 2008

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Shares of Mainstream Minerals (TSX: V.MJO, Stock Forum) and King's Bay Gold (TSX: V.KBG, Stock Forum) both soared 80% Wednesday, after the companies announced the successful completion of the Phase 1 drilling program on their joint-ventured Phyllis Lake Project near Ignace, Ontario.

Mainstream’s shares closed at nine cents, up from four cents on volume of 168,000. King’s Bay shares also closed at nine cents, up from four cents, on volume of 495,000.

The results from the Phase 1 program confirm the presence of wide zones of uranium, rare earths, rare metals and other minerals, notably sulfur and iron, at or near surface in East Zone Number 1. The companies said all of these minerals have significant economic value and given that these wide zones are at or near surface, they are amenable to open pit mining.

On the Mainstream BullBoard, highwillow said, “very little competition with the rare earth elements. China will want to acquire this resource since they already control the rare earth markets. In the first 11 meters alone there is 50.66 gms per ton Scandium. At recent prices of $100 per gram that is a resource of $5066 per ton in a strip mining operation - $$$$. A Google search of the rare elements identified shows they range inprice from around a dollar to over $100 per gm.

“There is greater value in Mainstream vs. Kings Gold given the lower market cap with smaller share count. Good luck longs.”

Over on the King’s Bay BullBoard, choto asked, “Is it Headway? Pipestone? Bobjo?

“China Calling

“King’s Bay Gold and Mainstream Minerals have also recently been approached by several Chinese mining entities that have expressed an interest in acquiring or partnering in some of the partners’ projects. Discussions are at the preliminary stage and the partners will inform their shareholders if a deal or deals are struck.”

“Criminals, IMO,” retorted goodinfo11

“First they drop the price to pennies, give themselves a .05 PP, then release assays.

“Same old game from Rivet. Lining his pockets on shareholders backs.

“All in my good info-licious opinion.”

And messanger9 said, “I thought this was to be news. Assays are just above background. I guess that is why they are so consistent. I could get there results in any sulphide zone. No economic mineral at all.”

To which scanner18 replied, “probably by the end of the week or sooner be back to .04 or less...does not seem to have any real buying and enough said...whatever happened to it becoming a potash miner? Maybe Leo knows?”



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