Rare Element Resources Ltd. (the “Company”) (NYSE MKT: REE and TSX:
RES), a mineral resources company advancing development of the Bear
Lodge Critical Rare Earth Project, announced today that drilling
completed during 2013 resulted in the contained total rare earth oxide
(TREO) at the Whitetail Ridge deposit increasing by nearly 80 percent,
resulting in the project-wide TREO increasing by 10 percent. The
Indicated resource at Whitetail, which carries higher concentrations of
heavy rare earths (HRE), rose to 4.2 million tons (3.8 million tonnes)
at an average grade of 2.49 percent TREO, using a 1.5 percent TREO
cutoff grade, representing 209 million pounds (95 million kilograms) of
contained TREO. The project-wide M&I resource increased to 16.8 million
tons (15.2 million tonnes) at an average grade of 3.11 percent TREO,
using a 1.5 percent cutoff grade, representing 1,043 million pounds (473
million kilograms) of contained TREO. Drilling confirmed the HRE
enrichment at Whitetail, with elevated Europium (Eu), Terbium (Tb),
Dysprosium (Dy) and Yttrium (Y). The total HRE (Eu-Lu + Y) grade at
Whitetail is almost twice that of the Bull Hill deposit, or 0.189
percent versus 0.101 percent, respectively. The expanded Whitetail
resource will be incorporated into the Project’s overall mine plan as
part of the Feasibility Study.
“Our 2013 drilling program significantly expanded the indicated resource
at Whitetail – particularly our resource of contained HREs,” stated Dr.
James G. Clark, Vice President of Exploration. “Bear Lodge is a
world-class rare earth district with multiple rare earth ore zones
created by different geological events. The higher concentrations of
HREs found at the Whitetail deposit and other exploration targets, like
Carbon and Taylor, make them excellent complements to the Bull Hill
deposit. Because HREs are usually higher priced and projected to have
better supply and demand fundamentals, these peripheral targets provide
real upside opportunity and will help ensure the Company’s premier place
in the world’s rare earth supply chain.”
Resource Growth - 2013 Whitetail Ridge Drill Program
The 2013 Whitetail development drill program consisted of approximately
11,700 feet of HQ-sized core drilling in 14 holes focused on the
northeast portion of the mineralized area. The program’s objective was
to upgrade a large block of Inferred oxide resource into the Indicated
resource category and to further delineate zones of HRE enrichment.
The program was successful with the Indicated resource at Whitetail
seeing an increase in the contained TREO of approximately 80 percent,
from 117 million pounds (53.2 million kilograms) to 209 million pounds
(95 million kilograms). The increase at Whitetail resulted in growth in
the project-wide contained TREO of 10%, from 944 million pounds (429
million kilograms) to 1,043 million pounds (473 million kilograms).
Additionally, drilling confirmed the continuation of HRE enrichment
through the newly drilled areas of the deposit.
Comparison of Updated M&I Resource to M&I Resource Reported in
May 2013
|
|
|
|
|
|
|
December 2013 Resource @ 1.5% TREO Cutoff (In
millions, except where noted)
|
|
|
May 2013 Resource @ 1.5% TREO Cutoff (In millions,
except where noted)
|
Location
|
|
Tons
|
|
Tonnes
|
|
Grade TREO%
|
|
Contained TREO lbs.
|
|
Contained TREO Kg
|
|
|
Location
|
|
Tons
|
|
Tonnes
|
|
Grade TREO%
|
|
Contained TREO lbs.
|
|
Contained TREO Kg
|
Whitetail Ridge
|
|
|
|
|
|
|
|
|
|
|
|
|
Whitetail Ridge
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
--
|
|
--
|
|
--
|
|
--
|
|
--
|
|
|
Measured
|
|
--
|
|
--
|
|
--
|
|
--
|
|
--
|
Indicated
|
|
4.20
|
|
3.81
|
|
2.49
|
|
209
|
|
95.1
|
|
|
Indicated
|
|
2.25
|
|
2.04
|
|
2.61
|
|
117
|
|
53.2
|
Total M& I
|
|
4.20
|
|
3.81
|
|
2.49
|
|
209
|
|
95.1
|
|
|
Total M& I
|
|
2.25
|
|
2.04
|
|
2.61
|
|
117
|
|
53.2
|
Project Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Total
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
1.96
|
|
1.78
|
|
3.91
|
|
153
|
|
69.4
|
|
|
Measured
|
|
1.94
|
|
1.76
|
|
3.93
|
|
153
|
|
69.5
|
Indicated
|
|
14.80
|
|
13.42
|
|
3.01
|
|
890
|
|
403.7
|
|
|
Indicated
|
|
12.71
|
|
11.53
|
|
3.11
|
|
791
|
|
359.5
|
Total M&I
|
|
16.76
|
|
15.20
|
|
3.11
|
|
1,043
|
|
473.1
|
|
|
Total M&I
|
|
14.65
|
|
13.29
|
|
3.22
|
|
944
|
|
429.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Project-Wide Measured and Indicated Resource at
Various Cutoff Grades (In millions, except where noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oxide (OX)
|
|
|
|
Oxide + Calcite (OxCa)
|
|
|
|
Total Oxidized (OX + OxCa)
|
Cutoff Grade (% REO)
|
|
|
|
Tons
|
|
|
Tonnes
|
|
|
Grade (%REO)
|
|
|
|
Tons
|
|
|
Tonnes
|
|
|
Grade (%REO)
|
|
|
|
Tons
|
|
|
Tonnes
|
|
|
Grade (%REO)
|
0.50
|
|
|
|
27.4
|
|
|
24.9
|
|
|
1.55
|
|
|
|
26.2
|
|
|
23.7
|
|
|
1.53
|
|
|
|
53.6
|
|
|
48.6
|
|
|
1.54
|
1.00
|
|
|
|
12.7
|
|
|
11.5
|
|
|
2.50
|
|
|
|
12.0
|
|
|
10.9
|
|
|
2.49
|
|
|
|
24.7
|
|
|
22.4
|
|
|
2.50
|
1.50
|
|
|
|
8.2
|
|
|
7.4
|
|
|
3.22
|
|
|
|
8.5
|
|
|
7.7
|
|
|
3.01
|
|
|
|
16.8
|
|
|
15.2
|
|
|
3.11
|
2.00
|
|
|
|
6.1
|
|
|
5.5
|
|
|
3.73
|
|
|
|
6.4
|
|
|
5.8
|
|
|
3.44
|
|
|
|
12.5
|
|
|
11.3
|
|
|
3.58
|
2.50
|
|
|
|
4.4
|
|
|
4.0
|
|
|
4.32
|
|
|
|
4.6
|
|
|
4.2
|
|
|
3.90
|
|
|
|
9.0
|
|
|
8.2
|
|
|
4.10
|
3.00
|
|
|
|
3.1
|
|
|
2.8
|
|
|
4.95
|
|
|
|
3.2
|
|
|
2.9
|
|
|
4.39
|
|
|
|
6.4
|
|
|
5.8
|
|
|
4.67
|
3.50
|
|
|
|
2.3
|
|
|
2.1
|
|
|
5.60
|
|
|
|
2.2
|
|
|
2.0
|
|
|
4.97
|
|
|
|
4.4
|
|
|
4.0
|
|
|
5.30
|
4.00
|
|
|
|
1.7
|
|
|
1.5
|
|
|
6.21
|
|
|
|
1.5
|
|
|
1.4
|
|
|
5.57
|
|
|
|
3.2
|
|
|
2.9
|
|
|
5.91
|
4.50
|
|
|
|
1.3
|
|
|
1.2
|
|
|
6.76
|
|
|
|
1.0
|
|
|
0.9
|
|
|
6.11
|
|
|
|
2.4
|
|
|
2.2
|
|
|
6.47
|
5.00
|
|
|
|
1.0
|
|
|
0.9
|
|
|
7.35
|
|
|
|
0.7
|
|
|
0.6
|
|
|
6.64
|
|
|
|
1.8
|
|
|
1.6
|
|
|
7.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Methodology
Resources were estimated for the Whitetail deposit using
inverse-distance-weighting with grade zones to differentiate between
high-grade and stockwork mineralization. High-grade mineralization was
defined as a minimum 20 feet (6.1m) true width above 1.5%. Slightly
different cutoff grades and minimum widths were used in other areas.
Drill holes were composited to nominal 10-foot (3.05m) true-width
intervals for estimation. Grades were not capped, but oxide and
oxide-carbonate grades were adjusted downward for estimation of the
transition and sulfide zones to compensate for the significant increase
in grade in the oxidized zones. Grades were estimated using trend
surfaces to interpolate parallel to the carbonatite/FMR dike
orientation. The resource model blocks are 10 X 10 X 10-foot cubes.
Based on 4-year average REO prices, the cutoff grade of 1.5% REO was
selected near the high-point of a range of likely cost scenarios. As
additional data are gathered, work will continue on the resource
estimates with further evaluation and refinement.
Mineralized District
Discovery of high-grade HRE mineralization at the Whitetail Ridge
deposit, and at the Taylor and Carbon target areas, allowed the Company
to expand the area of known rare earth mineralization well beyond the
Bull Hill deposit and identify a "district" underlain by significant
rare earth mineralization. As currently understood, the Bear Lodge
District covers a crudely elliptical area that extends approximately
5,740 feet (1,750m) northwest-southeast by 4,260 feet (1,300m)
northeast-southwest. Geochemical and geophysical work has identified
several additional targets areas nearby for further exploration.
Work done to date identifies a general zonation of rare earth
distribution in the Bear Lodge district. The Whitetail resource area and
Carbon target are located northwest of the Bull Hill deposit, and the
Taylor target is located west of the Bull Hill deposit. The three
western mineralized zones are characterized by some of the highest
grades of Eu, Tb, Dy, and Y in any North American rare earth deposit and
also contain high abundances of the light rare earths (LREs; La-Sm),
which includes the Critical Rare Earths (CRE) Neodymium (Nd) and
Praseodymium (Pr). The total HRE abundances at the Whitetail Ridge
resource, and at the Taylor and Carbon targets, are two to four times
higher than those found at the Bull Hill deposit.
Heavy Rare Earth Distribution Comparison for Different Bear
Lodge Deposits and Target Areas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Targets
|
|
|
|
|
|
|
|
Location
|
|
Bull Hill M&I Resource (12.56M tons @ 1.5% TREO
Cutoff
|
|
Whitetail Ridge (Indicated: 4.20M tons
@ 1.5% TREO Cutoff
|
|
Taylor (oxide) (Estimate based on aggregate
of 796' total significant intercepts
|
|
Carbon (oxide) (Estimated based on Aggregate
of 1,059' total significant intercepts)
|
TREO%
|
|
3.32%
|
|
2.49%
|
|
3.44%
|
|
5.49%
|
Eu2O3
|
|
0.018
|
|
0.024
|
|
0.032
|
|
0.033
|
Tb203
|
|
0.003
|
|
0.007
|
|
0.017
|
|
0.009
|
Dy2O3
|
|
0.008
|
|
0.022
|
|
0.049
|
|
0.033
|
∑ Oxides Eu+Tb+Dy
|
|
0.029
|
|
0.053
|
|
0.098
|
|
0.075
|
Y2O3
|
|
0.025
|
|
0.063
|
|
0.181
|
|
0.140
|
|
|
|
|
|
|
|
|
|
HREO as a % of Total (Eu:Lu+Y)
|
|
3.00%
|
|
7.60%
|
|
10.90%
|
|
8.07%
|
Based on December 2013 data
|
|
The Importance of Critical and Heavy Rare Earths
The unique characteristics of rare earths allow them to be used in a
variety of applications and results in a unique supply and demand
fundamental for each element. CREs were identified in a 2011 study by
the US Department of Energy (DOE) entitled, “Critical
Material Strategy.” The study reviewed rare earths based on their
role in clean energy juxtaposed against their supply risk and stressed
the importance of developing sources for CREs outside of China. The
study identified as “critical” the HREs of Eu, Tb, Dy and Y, and the LRE
Nd. The Company includes Pr in this list because it can substitute for
Nd in light weight, high-intensity permanent magnets, one of the major
uses in green, medical and telecommunication technologies.
While they usually occur all together in mineralized areas, the
concentration of each rare earth element varies significantly from
deposit to deposit. Based on pricing from the Metals Pages as of
December 3, 2013 and using the mineralized makeup reflecting the new
project-wide resource at Bear Lodge, over 85 percent of the projected
revenues are expected to come from CREs.
TREO, CRE and HRE Grades at the Whitetail Deposit and Bear
Lodge Project
|
|
|
|
|
Whitetail Ridge Only December 2013 Resource @ 1.5% TREO Cutoff (In
millions, except where noted)
|
|
|
Project-wide December 2013 Resource @ 1.5% TREO Cutoff (In
millions, except where noted)
|
Location
|
|
Tons
|
|
Tonnes
|
|
Grade TREO%
|
|
Grade CREO%
|
|
Grade HREO% (EU:LU+Y)
|
|
|
Location
|
|
Tons
|
|
Tonnes
|
|
Grade TREO%
|
|
Grade
CREO%
|
|
Grade HREO% (EU:LU+Y)
|
Whitetail Ridge
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Total
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
--
|
|
--
|
|
--
|
|
--
|
|
--
|
|
|
Measured
|
|
1.96
|
|
1.78
|
|
3.91
|
|
0.945
|
|
0.131
|
Indicated
|
|
4.20
|
|
3.81
|
|
2.49
|
|
0.696
|
|
0.189
|
|
|
Indicated
|
|
14.80
|
|
13.42
|
|
3.01
|
|
0.759
|
|
0.122
|
Total M& I
|
|
4.20
|
|
3.81
|
|
2.49
|
|
0.696
|
|
0.189
|
|
|
Total M& I
|
|
16.76
|
|
15.20
|
|
3.11
|
|
0.784
|
|
0.123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For a complete list of the significant assays by individual drill hole
as well as the values of the Eu, Tb, Dy and Y found in each intercept,
please visit the Company’s website at www.rareelementresources.com
and go to the Bear Lodge Project Geology and Mineralization page.
Bull Hill Extended Drill Program
The 2013 drill program was extended in mid-August in order to examine
the grade distribution in the high-grade zone at the Bull Hill deposit.
The program was suspended in mid-October due to severe weather
conditions. Approximately 90% of the drilling was completed, with 10,651
feet drilled in 21 PQ-diameter drill holes. Assays are pending, with all
assays expected by late December 2013. The resulting data will be
incorporated into the evaluation of a development option that mines this
high-grade core first to improve early Project cash flows.
Assays, Quality Control, and Standard Certification
Assays for the 2013 drill program reported here were conducted by
Activation Laboratories Ltd. of Ancaster, Ontario, Canada (ActLabs) in
their Ontario assay facility. ActLabs is accredited to ISO 9001 and ISO
17025 methods. The samples were prepared and subjected to lithium
metaborate fusion, followed by ICP analysis and a mass spectroscopy
finish (Code UT-1-0.5g Aqua Regia ICP/MS analytical package). Gold
assays for each sample were conducted using ActLabs Code 1A2 Au method
(fire assay/AA finish).
For the 2013 drill hole assays, analytical quality is monitored through
the use of randomly inserted quality control samples, including
standards, blanks, and duplicates, which are blinded to the analytical
laboratory. Results from the analyses at ActLabs are evaluated
continuously by Dr. Jeffrey Jaacks, the Company's QA/QC consultant, who
is a Qualified Person according to National Instrument 43-101. The
results from the current data set of 2013 drill hole assays indicate
acceptable accuracy and precision.
Rare Element Resources Ltd. is a publicly traded mineral resource
company focused on exploration and development of rare-earth element
deposits, specifically those with significant distribution of critical
rare earths. The Company is advancing development of the Bear Lodge
Project, located in northeast Wyoming. Bear Lodge is a significant
mineralized district containing many of the less common, more valuable
critical rare earths that are essential for electronics, fiber optics,
laser systems for health and defense, as well as many evolving green
technologies, like hybrid cars, solar panels and wind turbines.
Permitting and feasibility work on the Project is currently underway.
For additional information, please visit the Company’s website at www.rareelementresources.com
or contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.
John T. Ray, MS, Rare Element's internal, qualified person under
Canadian NI 43-101, supervised the preparation of the scientific and
technical information concerning the Company's mineral project contained
in this news release. For a description of the key assumptions,
parameters and methods used to estimate mineral reserves and resources,
as well as data verification procedures and a general discussion of the
extent to which the estimates may be affected by any known
environmental, permitting, legal, title, taxation, socio-political,
marketing or other relevant factors, please see the Technical Reports
for our project as filed on SEDAR at www.sedar.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
usually identified by our use of certain terminology, including "will,"
"believes," "may," "expects," "should," "seeks," "anticipates," "plans,"
"has potential to," or "intends" or by discussions of strategy or
intentions. Such forward-looking statements include statements regarding
the processing test work and expected results, permitting process and
progress, and project development plans for the future. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results or
achievements to be materially different from any future results or
achievements expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include,
but are not limited to, the progress of our Bear Lodge Project,
fluctuations in demand for, and price of, rare earth products; success
of process technology under testing; timing of and unexpected events at
the Bear Lodge property; delay or failure to receive government
approvals and permits; changes in U.S. and Canadian securities markets;
and general economic conditions. There can be no assurance that future
developments affecting the Company will be those anticipated by
management. Please refer to the discussion of these and other factors
set out in our filings made from time to time with the SEC and Canadian
security regulators, including but without limitation, our reports on
Form 10-K and Form 10-Q. We expect that the above estimates as to
development plans, technology and other processes, time frames and
financial needs will change as new information is received and that
actual results will vary from these estimates, possibly by material
amounts. While we may elect to update these estimates at any time, we do
not undertake to update any estimate at any particular time or in
response to any particular event. Investors and others should not assume
that any forecasts in this press release represent management's estimate
as of any date other than the date of this press release.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce.
We may use certain terms in public disclosures, such as "measured,"
"indicated," "inferred" and "resources," that are recognized and
required by Canadian regulations, but that SEC guidelines generally
prohibit U.S. registered companies from including in their filings with
the SEC. U.S. investors are urged to consider closely the disclosure in
our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov.
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20131219005393r1&sid=ntxv4&distro=nx)
Copyright Business Wire 2013