Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(PINK
SHEETS: QREDF)(FRANKFURT: BR3) ("Quantum", the "Company") is
pleased to announce that it has acquired the Elk Creek Carbonatite,
one of the largest known carbonatites in North America, through the
acquisition of Elk Creek Resources Corp., a private Nebraskan
corporation which, through a series of agreements, owns an option
to acquire the mineral rights to the project.
Elk Creek Carbonatite
The Elk Creek Carbonatite, located in southeastern Nebraska, is
an intrusive complex of carbonatite and related rocks and is host
to significant niobium and rare earth element (REE) mineralization.
The Elk Creek Carbonatite is evidenced by diamond drilling in an
oval-shaped magnetic and gravity anomaly approximately 7 kilometres
in diameter, making it one of the largest known carbonatite
complexes. According to the US Geological Survey, "The Elk Creek
carbonatite, located south of Lincoln, has the potential to be one
of the largest global resources of niobium and rare earth elements
(REE)" (http://water.usgs.gov/wid/html/ne.html).
"The Elk Creek Carbonatite is a highly sought after project
which we strongly believe carries the potential to host substantial
deposits of both niobium and rare earth elements. Once we have
completed the compilation of the historic data, we plan on
aggressively pursuing exploration and development of this project
through our new subsidiary, Elk Creek Resources, following the
recommendations that will be forthcoming in the NI43-101 report,"
commented Quantum President and CEO, Peter Dickie.
Historic exploration of the property was conducted by the State
of Nebraska, Cominco American and Molycorp, Inc. during the 1970's
and 1980's. At least 113 core holes were completed within the
outline of the 7-kilometre diameter geophysical anomaly. Detailed
drilling of 25 holes was completed within a core zone, which
identified high-grade niobium mineralization. This drilling
resulted in a historic resource estimate of "39.4 million tons of
0.82% Nb2O5 and is open to the north, west and at depth" (Molycorp,
Inc. internal memorandum, Feb 05/1986).
All of the niobium and rare earth drill results and estimates of
historic resources pre-date and are therefore non-compliant with
National Instrument 43-101 ("NI 43-101") reporting standards. The
Company is not treating the historical estimates as current mineral
resources or reserves. The Company has not undertaken any
independent investigation of the drill results or resource
estimates nor has it independently analyzed the results of the
previous exploration work in order to verify the resources and
therefore the historical drill results and estimates should not be
relied upon. The Company believes that these historical drill
results and estimates provide a conceptual indication of the
potential of mineral occurrences within the project and are
relevant to ongoing exploration. The Company intends to confirm the
resource estimate through drilling as soon as possible.
Molycorp completed wide-spaced drilling on roughly 610 metre
centres surrounding the core zone, within the 7-kilometre diameter
geophysical anomaly. Thick intersections of rare earth elements
(REE), niobium and phosphate mineralization were encountered in
several of these holes. At least 18 of the surrounding holes
intersected greater than 20 feet (6.1 metres) of greater than 1.0%
REO, while at least 17 of the surrounding holes intersected greater
than 10 feet (3.05 metres) of greater than 0.6% Nb2O5. All drill
intercepts reported here are down-hole measurements. The
orientations of mineralized sections are unknown, and therefore,
true thicknesses have yet to be determined. It is important to note
that REO as reported here refers to rare earth oxide and in this
case refers only to the sum of lanthanum, cerium and neodymium
oxides only. Results for the other rare earths are not available.
Analysis was performed at Molycorp's internal laboratories, with
check analysis at Skyline Laboratory, Colorado.
In addition to the core historic niobium resource zone,
anomalous niobium mineralization was identified during the
wide-spaced exploration drilling. Hole EC-40 located approximately
1.5 kilometres northeast of the core niobium resource zone
intersected 24.4 metres of 1.01% Nb2O5 and 0.31% REO. Hole EC-95
located approximately 1.2 kilometres southwest of the core niobium
resource zone intercepted 10.5 metres of 0.70% Nb2O5.
Three zones of anomalous REE mineralization were identified
outside the core historic niobium resource zone, during the
wide-spaced exploration drilling. The results of some of the holes
are summarized below:
Hole ID From (m) To (m) Interval (m) REO (%)
-------- ------- ----- ----------- ------
eastern anomaly
EC-93 149.4 289.6 140.2 2.19
including 179.8 198.1 18.3 3.12
EC-43 243.8 256.0 12.2 2.83
295.7 323.1 27.4 1.52
EC-4 217.1 402.3 185.2 1.18
417.6 445.0 27.4 1.02
western anomaly
EC-41 304.8 335.3 30.5 1.19
365.8 396.2 30.5 1.28
EC-55 237.7 429.8 192.0 1.31
246.9 271.3 24.4 1.62
289.6 323.1 33.5 2.09
338.3 390.1 51.8 1.52
central anomaly
EC-1 198.1 219.5 21.3 1.05
225.6 234.7 9.1 1.08
EC-17 554.7 612.6 57.9 1.27
EC-19 187.5 253.0 65.5 1.13
627.9 661.4 33.5 1.02
EC-21 207.6 228.6 21.0 1.54
Several of these regional holes terminated in carbonatite.
Petrographic and microprobe work completed by Molycorp indicates
that the rare earth elements are hosted within the minerals
bastnaesite, parasite, synchisite and lesser amounts of monazite.
Niobium is hosted within pyrochlore.
Associated with the carbonatite and carbonatite breccias are
lesser amounts of basalt, lamprophyre, and syenite. These Late
Proterozoic-age intrusive rocks are situated approximately 200
metres below an almost flat-lying cover of Pennsylvanian-aged
marine carbonate and shale.
Carbonatites are very rare and unique rock types, with
approximately 500 complexes known worldwide. Often containing a
variety of exotic minerals, carbonatites have been known to produce
economic concentrations of rare earth elements, niobium, copper,
iron, apatite, vermiculite and fluorite; with significant
byproducts which may include barite, zircon, tantalum, gold,
silver, uranium, nickel and platinum group elements.
Geologists recently completed a property visit on behalf of the
Company and collected representative samples to confirm and verify
the presence of niobium and rare earth element mineralization in
selected drill holes. A NI 43-101 compliant technical report is
being prepared by Michael S, Cathro, P.Geo. and Neil McCallum,
P.Geol and will include the results of the sampling, a summary of
historical exploration and geological information, and
recommendations for future work. The Company expects receipt of the
completed report within the next 30 to 45 days.
The Company is continuing to acquire historical information for
the project. Most of the historic drill core, sample rejects and
pulps from Molycorp's exploration are available for review and
sampling. A work program consisting of data compilation, re-logging
and verification sampling of historic material will be conducted
prior to initiating the Company's own exploration.
Michael S. Cathro, P.Geo. and Neil McCallum, P.Geol. are the
qualified persons responsible for the Elk Creek Carbonatite
Project. They have read and approved the technical disclosure
contained in this news release.
Acquisition of Elk Creek Resources
The acquisition by Quantum involves the purchase of all of the
issued and outstanding common shares of 859404 BC Ltd., ("859404")
a private British Columbia company. 859404 holds 100% of the issued
and outstanding shares of Elk Creek Resources Corp., the Nebraskan
corporation that has secured individual agreements to acquire the
mineral rights to the Elk Creek Carbonatite. The agreements are in
the form of a five-year pre-paid lease, with an option to purchase
the mineral rights at the end of the lease. The property was held
under a similar type of option agreement by Molycorp, Inc. in the
1970's and 1980's.
In consideration for the common shares of 859404, the Company
will pay a total of $500,000 and issue one common share of the
Company for each common share of 859404 issued and outstanding. Of
the total, $200,000 has been paid by Quantum on signing of the
agreement with 859404 and the balance of cash and shares is payable
upon acceptance of the TSX Venture Exchange. As of April 26, 2010,
859404 BC Ltd. had approximately 19.2 million shares issued and
outstanding.
The transaction will not constitute a change of control of
Quantum, nor will it create any new control position shareholders
of Quantum. The transaction is not a non-arms-length
transaction.
A finders fee in accordance with TSX Venture Exchange policy
will be payable on this acquisition.
ABOUT Quantum Rare Earth Developments Inc.
Quantum Rare Earth Developments is a junior exploration company
with a focus on seeking out potentially economic deposits of rare
earth elements in North America and elsewhere in the world. It has
a strong management team with a widespread network providing
resource projects in discovery areas. To date, the Company has
acquired three highly prospective rare earth projects. The first
acquisition, at Archie Lake, Saskatchewan, with the second in the
vicinity of Mount Weld in Australia, and the third being the Elk
Creek Carbonatite.
On Behalf of the Board,
Peter Dickie, President, CEO
Cautionary note: This report contains forward looking
statements, particularly those regarding cash flow, capital
expenditures and investment plans. Resource estimates, unless
specifically noted, are considered speculative. The company has
filed a National Instrument 43-101 report on the Archie Lake
property, and intends to file additional NI 43-101 reports on
additional properties as soon as the information is available. Any
and all other resource or reserve estimates are historical in
nature, and should not be relied upon. By their nature, forward
looking statements involve risk and uncertainties because they
relate to events and depend on factors that will or may occur in
the future. Actual results may vary depending upon exploration
activities, industry production, commodity demand and pricing,
currency exchange rates, and, but not limited to, general economic
factors. Cautionary Note to US investors: The U.S. Securities and
Exchange Commission specifically prohibits the use of certain
terms, such as "reserves" unless such figures are based upon actual
production or formation tests and can be shown to be economically
and legally producible under existing economic and operating
conditions.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Contacts: Quantum Rare Earth Developments Corp. Peter Dickie
President and CEO (604) 669-9330 (604) 669-9335 (FAX)
Niocorp Developments Ltd. (TSXV:QRE)
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