Rare Earth Metals Inc. ("Rare Earth Metals", "RA" or the "Company")
(TSX VENTURE: RA)(OTCQX: RAREF)(PINK SHEETS: RAREF) is pleased to
announce the first NI 43-101 compliant independent resource
estimate for the Company's 100% owned Clay- Howells iron - rare
earth element (Fe - REE) Property in northwestern Ontario. The
resource estimate was prepared by Tetra Tech Wardrop (Tetra Tech)
of Toronto, Ontario who recommends that additional drilling be
conducted to further investigate and develop the known Clay-Howells
deposit and determine continuity of the carbonatite, mineralized
syenite, and massive magnetite lithologies and Fe and REE grades.
Highlights:
-- 8.5 million tonnes grading at 0.73% total rare earth oxide (TREO), 0.13%
Niobium Oxide (Nb205) and 44.17% iron oxide (Fe2O3) at a 0.6% TREO cut-
off grade in the inferred category
-- 40.4 million tonnes grading at 0.48% TREO and 34.62% Fe2O3 within a
larger 0.2% TREO gradeshell
-- Calculation is based on over 5436 m of drilling in 18 holes and 1825
assay samples covering 700 meters of strike length to an average depth
280 meters
-- Resource areas open along multiple directions and to depth
-- Additional sampling, drilling, and specific gravity readings recommended
for next phase of drilling
The Clay-Howells deposit is 100% owned by Rare Earth Metals, who
purchased the patented mining and surface rights from the original
vendors in 2009, and is ideally located north of Kapuskasing,
Ontario close to industrial infrastructure and a mining oriented
workforce. Since acquisition, the Company has been evaluating the
Clay-Howells Magnetite Deposit for its REE potential, and this
resource report is an important milestone in establishing a
substantial mineral resource which will form the basis to further
advance the project. Jack Lifton, a well-respected expert on REE
economics and an advisor to the Company, recently completed a field
visit to the project and provided an assessment of the deposit
potential regarding the synergies of producing a magnetite
concentrate with a Rare Earth Element (REE) and Niobium (Nb)
by-product. His evaluation stated that "The Clay-Howells' deposit
represents an excellent opportunity to develop a "polymetallic
boutique" operation in which one or more valuable products are able
to subsidize the cost of others". Mr. Lifton's summary of the
deposit is outlined in a previous press release dated July 19,
2011. Preliminary magnetic separation tests were carried out by
Xstrata Process Support in September, 2010 after the initial
drilling, and results from this work showed that there was a
consistent upgrading of REE grade into the non-magnetic fraction.
However, improvements in the recovery of the REE to the
non-magnetic fraction require optimization and further test work.
It should be noted that only limited mineralogy and metallurgical
assessment has been carried out to date and detailed work would be
needed to understand how well the various commodities could be
separated.
"We are obviously very pleased with the results of this report
which demonstrates the project's potential to host a much larger
Iron - REE deposit", commented Mr. Michael Stares, President and
CEO. "We believe we have only scratched the surface of this project
and this resource calculation gives us the confidence to move
forward. The property's great infrastructure such as its proximity
to roads and hydro also add to its potential to be a contender as
we can fast-track the project to production if further evaluation
warrants".
Mineral resources were modeled by Tetra Tech and reported at
eight different Total Rare Earth Oxide (TREO) cut-off grades, with
a base-case resource estimated using a TREO cut-off of 0.6%. At
this cut-off, Clay Howells hosts an Inferred Mineral Resource of
8.5 million tonnes grading 0.73% TREO, and 44.15% Fe2O3, with 10%
of the TREO being the higher value HREO (heavy rare earth
oxides).
Inferred Resource Estimate for the Clay-Howells Deposit
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TREO HREO:
%Cut Tonnes LREO HREO TREO TREO
-off (x 000) Density % %(i) %(i) Ratio Fe2O3% Nb2O5% MnO% ThO2%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
0.9% 690 3.40 0.962 0.096 1.058 9% 45.47 0.13 2.34 0.06
----------------------------------------------------------------------------
0.8% 1,612 3.42 0.847 0.087 0.934 9% 45.92 0.14 2.33 0.07
----------------------------------------------------------------------------
0.7% 4,293 3.43 0.736 0.080 0.816 10% 45.17 0.13 2.25 0.08
----------------------------------------------------------------------------
0.6% 8,477 3.44 0.661 0.071 0.732 10% 44.15 0.13 2.20 0.07
----------------------------------------------------------------------------
0.5% 15,293 3.42 0.585 0.064 0.649 10% 42.19 0.12 2.09 0.07
----------------------------------------------------------------------------
0.4% 25,059 3.40 0.513 0.058 0.571 10% 38.93 0.12 1.93 0.06
----------------------------------------------------------------------------
0.3% 35,496 3.39 0.454 0.053 0.507 10% 35.44 0.12 1.77 0.05
----------------------------------------------------------------------------
0.2% 40,422 3.38 0.426 0.050 0.476 10% 34.62 0.11 1.71 0.05
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Note: (i)Includes Y2O3
Rare Earth grades by individual rare earth oxides at the varying
% cut-off are as follows:
Inferred Resource Estimate for the Clay-Howells Deposit by %REOs
-------------------------------------------------------------------
TREO% Cut-off Tonnes
(x 000) LA2O3 CE2O3 PR2O3 ND2O3
-------------------------------------------------------------------
0.9% 690 0.292 0.455 0.044 0.148
-------------------------------------------------------------------
0.8% 1,612 0.251 0.403 0.039 0.133
-------------------------------------------------------------------
0.7% 4,293 0.210 0.353 0.035 0.119
-------------------------------------------------------------------
0.6% 8,477 0.183 0.318 0.032 0.110
-------------------------------------------------------------------
0.5% 15,293 0.159 0.282 0.029 0.099
-------------------------------------------------------------------
0.4% 25,059 0.138 0.248 0.025 0.088
-------------------------------------------------------------------
0.3% 35,496 0.121 0.219 0.023 0.079
-------------------------------------------------------------------
0.2% 40,422 0.114 0.205 0.021 0.075
-------------------------------------------------------------------
Inferred Resource Estimate for the Clay-Howells Deposit by %REOs
-------------------------------------------------------------------
TREO% Cut-off Tonnes
(x 000) SM2O3 EU2O3 GD2O3 TB2O3
-------------------------------------------------------------------
0.9% 690 0.022 0.005 0.015 0.004
-------------------------------------------------------------------
0.8% 1,612 0.020 0.005 0.014 0.005
-------------------------------------------------------------------
0.7% 4,293 0.018 0.005 0.012 0.005
-------------------------------------------------------------------
0.6% 8,477 0.017 0.004 0.011 0.004
-------------------------------------------------------------------
0.5% 15,293 0.015 0.004 0.010 0.004
-------------------------------------------------------------------
0.4% 25,059 0.014 0.004 0.009 0.003
-------------------------------------------------------------------
0.3% 35,496 0.012 0.003 0.008 0.003
-------------------------------------------------------------------
0.2% 40,422 0.012 0.003 0.008 0.003
-------------------------------------------------------------------
Inferred Resource Estimate for the Clay-Howells Deposit by %REOs
-------------------------------------------------------------------
TREO% Cut-off Tonnes
(x 000) DY2O3 HO2O3 ER2O3 TM2O3
-------------------------------------------------------------------
0.9% 690 0.009 0.002 0.005 0.001
-------------------------------------------------------------------
0.8% 1,612 0.009 0.002 0.004 0.001
-------------------------------------------------------------------
0.7% 4,293 0.008 0.001 0.004 0.000
-------------------------------------------------------------------
0.6% 8,477 0.007 0.001 0.003 0.000
-------------------------------------------------------------------
0.5% 15,293 0.006 0.001 0.003 0.000
-------------------------------------------------------------------
0.4% 25,059 0.006 0.001 0.003 0.000
-------------------------------------------------------------------
0.3% 35,496 0.005 0.001 0.002 0.000
-------------------------------------------------------------------
0.2% 40,422 0.005 0.001 0.002 0.000
-------------------------------------------------------------------
Inferred Resource Estimate for the Clay-Howells Deposit by %REOs
-------------------------------------------------------------------
TREO% Cut-off Tonnes
(x 000) YB2O3 LU2O3 Y2O3 TREO
-------------------------------------------------------------------
0.9% 690 0.004 0.001 0.051 1.058
-------------------------------------------------------------------
0.8% 1,612 0.003 0.000 0.045 0.934
-------------------------------------------------------------------
0.7% 4,293 0.003 0.000 0.041 0.816
-------------------------------------------------------------------
0.6% 8,477 0.003 0.000 0.036 0.732
-------------------------------------------------------------------
0.5% 15,293 0.002 0.000 0.033 0.649
-------------------------------------------------------------------
0.4% 25,059 0.002 0.000 0.030 0.571
-------------------------------------------------------------------
0.3% 35,496 0.002 0.000 0.027 0.507
-------------------------------------------------------------------
0.2% 40,422 0.002 0.000 0.025 0.476
-------------------------------------------------------------------
Notes:
-- Light Rare Earth Oxides (LREO) includes: La2O3,Ce2O3, Pr2O3, Nd2O3,
Sm2O3
-- Heavy Rare Earth Oxides (HREO) includes: Eu2O3, Gd2O3, Tb2O3, Tb2O3,
Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3
-- Total Rare Earth Oxides (TREO) includes: La2O3,Ce2O3, Pr2O3, Nd2O3,
Sm2O3, Eu2O3, Gd2O3, Tb2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3,
Lu2O3, Y2O3
-- The resource estimate has been classified as an Inferred Resource based
on drill hole spacing and sample population
-- The effective date of the Resource Estimate is September 23, 2011
The Resource Estimate is based on:
-- A database of 18 drill holes totalling 5,436 m of diamond drilling; of
which 17 drill holes intersect the Clay-Howells deposit
-- Samples were composited on 1.5 m lengths.
-- Average specific gravity 3.44 g/cc
-- Geological model constrained by carbonatite lithological domain and a
0.2% TREO gradeshell.
-- Block model was estimated by Ordinary Kriging interpolation method on
blocks 40m x 40m x 10m.
No recoveries have been applied to the interpolated estimates.
The "qualified person" as such term is defined in NI 43-101, who
prepared the mineral resource estimates disclosed in this press
release, is Mr. Paul Daigle, P.Geo. Mr. Daigle is an employee of
Tetra Tech, and registered with the Association of Professional
Geoscientists of Ontario. Mr. Daigle has reviewed and approved the
sections of this press release relating to the resource
calculation. Wayne Reid, P.Geo., is a qualified person as defined
in National Instrument 43-101, and has reviewed and approved the
background information described in this release.
About Rare Earth Metals Inc.
Rare Earth Metals is a well-funded company with a focus on
exploring for Rare Earth Element deposits. The Company's shares are
listed on the TSX-V exchange under the symbol RA and the OTCQX
exchange under the symbol RAREF. The Company presently has two
advanced projects in Ontario and Newfoundland and Labrador, both
exhibiting multi element potential (REEs, Niobium, Beryllium,
Zirconium and Iron Ore) and proximity to available infrastructure.
Its flagship properties are the Clay-Howells Prospect and the Red
Wine Project. The Company has recently acquired additional
properties in the Coldwell Complex near Marathon, Ontario and the
Lavergne-Springer REE Prospect near Sturgeon Falls, Ontario.
Additional information concerning the Company is contained in
documents filed by the Company with securities regulators,
available under the Company's profile at www.sedar.com. For more
information please visit the Rare Earth Metals website at
www.rareearthmetals.ca.
ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS
INC.:
Michael Stares, President and CEO
This release includes certain statements that may be deemed
forward-looking statements. All statements in this release, other
than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and those actual results or developments may
differ materially from those projected in the forward-looking
statements. For more information on the Company, Investors should
review the Company's filings that are available at
www.sedar.com.
Company information distributed through the Market Access
Program is based upon information that Standard & Poor's
considers to be reliable, but neither Standard & Poor's nor its
affiliates warrant its completeness or accuracy, and it should not
be relied upon as such. This material is not intended as an offer
or solicitation for the purchase or sale of any security or other
financial instrument.
"Neither the 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: Rare Earth Metals Inc. Michael Stares President and
CEO (807) 623-6840 (807) 623-9526 (FAX) Rare Earth Metals Inc. Nick
Vermeulen Consultant (807) 623-6840 or Cell: (604) 741-4150 (807)
623-9526 (FAX) nick@rareearthmetals.ca www.RareEarthMetals.ca
Standard and Poor's Customer Contact: Richard Albanese (212)
438-3647 richard_albanese@standardandpoors.com Standard and Poor's
Media Relations Contact: Michael Privitera (212) 438-6679
michael_privitera@standardandpoors.com
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