Quantum Rare Earth Developments Corp.: Elk Creek Carbonatite Host to an Inferred Resource of 83 Mt of 0.62% Nb2O5
March 16 2011 - 2:05AM
Marketwired
Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(OTCQX:
QREDF)(FRANKFURT: BR3) ("Quantum", the "Company") is pleased to
provide the first NI 43-101 compliant resource estimate for the Elk
Creek Niobium Deposit, located in southeastern Nebraska, USA. The
resource estimate was prepared by Wardrop (Mining and Minerals) of
Toronto, Ontario.
Mineral estimates were estimated by Wardrop, by applying several
different cut-off grades, with a base case resource estimated using
a cutoff of 0.40% Nb2O5. The mineral resource estimate for the Elk
Creek Deposit, at 0.4% Nb2O5 cut-off grade, is an Inferred Resource
of 83.4 Mt at 0.62 Nb2O5%. The resource was estimated by ordinary
krig (OK) method for Nb2O5% at various Nb2O5% cut-off grades
ranging from 0.35 Nb2O5% to 0.70 Nb2O5% and are presented in the
Table below. No recoveries have been applied to the interpolated
estimates.
Table 1.1 Inferred Resource Estimate for the Elk Creek Deposit
--------------------------------------------------------
--------------------------------------------------------
Contained
Nb2O5% Tonnes Nb2O5
Cut off Density (x 000 t) Nb2O5% (1,000's of kg)
--------------------------------------------------------
--------------------------------------------------------
0.70% 3.00 19,224 0.80 153,239
--------------------------------------------------------
0.60% 3.00 42,030 0.72 300,965
--------------------------------------------------------
0.50% 3.00 66,834 0.65 437,703
--------------------------------------------------------
0.40% 3.00 83,367 0.62 513,184
--------------------------------------------------------
0.35% 3.00 86,100 0.61 523,628
--------------------------------------------------------
--------------------------------------------------------
Notes:
1. Effective date of the resource estimate is 11 March 2011
2. Resource estimate based on Nb2O5% assays from historic assay database.
3. Wardrop considers a base case cut-off grade of 0.40 Nb2O5% to be
reasonable in the absence of metallurgical data and economic parameters
(i.e. operating costs).
4. Average specific gravity of 3.00 g/cc
5. The resource estimate has been classified as an Inferred Resource based
on the use of historic data, number of drill holes used in the estimation
and for the relatively low sample support within the current outlined
deposit.
6. Resource Estimate is based on:
- A database of 25 drill holes totalling 14,739.8 m of diamond drilling
where samples were composited on 3.05 m (10 ft.) lengths.
- An Indicator Kriged (IK) wireframe, defining a 45% probability of
achieving or exceeding a cut-off of 0.4 Nb2O5%, was generated on block
size of 20 m x 20 m x 10 m.
- Geological model bounded by the IK wireframe. The IK wireframe was
generated based on the 25 drill holes.
- Block model estimated by OK interpolation method on block size
10m x 10m x 10m. The OK estimation was generated based on 14 drill holes
within the mineralized IK wireframe.
- Resource Estimate assumes 100% recovery as metallurgical results are not
available.
Peter Dickie, President and CEO of Quantum Rare Earths
Developments Corp. comments, "We are greatly encouraged by these
exceptional results, as they provide the United States with the
opportunity to develop a domestic supply of Niobium.; a country
which currently imports almost 100 per cent of its consumption.
According to the USGS, 8.5 million kilograms of niobium were
imported by the US in 2010. Recent developments in the critical
metals market highlight the need for a diverse supply chain for
critical metals."
The Elk Creek Niobium Deposit is an elongate, approximately
east-west orientated mineral occurrence, in excess of 800 meters
along strike. The deposit remains open to the east, west and at
depth. It is hosted by the Elk Creek Carbonatite, which is an
intrusive complex of carbonatite and related rocks. The property
was held under an option agreement during the 1970s and 1980s by
Molycorp Inc., at which time considerable exploration took place.
At least 113 core holes were completed within the outline of the
seven-kilometre-diameter geophysical anomaly, with 25 holes
completed within a core zone, where high-grade niobium
mineralization was identified.
The company anticipates an active exploration program at Elk
Creek during 2011. Fugro Airborne Surveys Corp. of Ottawa, Ont.,
has informed the company that it is now in receipt of permits for a
high-resolution airborne gravity and magnetic survey. The survey is
scheduled for the end of March and once complete, the company will
undertake an approximately 3,000 m drill program. This program is
anticipated to begin during the later part of April. The spring
2011 drill program at Elk Creek, will be the first undertaken on
the project in more than 25 years. Goals of the drill program
include:
1. the collection of core for metallurgical test work,
2. confirming and stepping out beyond the existing resource, and
3. confirming and stepping out beyond the REE mineralization previously
reported for Hole EC-93 (155.5 m of 2.70% TREO).
Carbonatites can host multiple commodities; notable examples
include the Palabora Complex (Cu, Fe, P, Zr, U, Vermiculite) in
South Africa, Araxa (Nb) in Brazil, St. Honore - Niobec (Nb),
Quebec and Mountain Pass (REE's), California. Iamgold's Niobec
Niobium Mine, Quebec, is hosted by a carbonatite and is one of the
world's largest primary niobium producers with proven and probable
reserves of 32.09 MT at 0.56% Nb2O5.
Qualified Persons: Paul Daigle, BSc, P.Geo., from Wardrop is an
independent qualified person as defined by NI 43-101, and is
responsible for the mineral resource estimate for the Elk Creek
Niobium Deposit and has verified the data disclosed in this
release.
Mr. Neil McCallum, P.Geol. is the qualified persons responsible
for the Elk Creek Carbonatite Project and has read and approved the
technical disclosure contained in this news release.
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)
www.QuantumRareEarth.com
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