2009 Drill Program Tests Gold Targets at Bear Lodge
Results include 44 meters averaging 1.24 g/t gold; 56 meters averaging 1.05 g/t gold; 76 meters averaging 0.85 g/t gold.
TSX-V: RES
Newmont began the 2009 drill program in early July to test extensions of higher-grade zones in the Smith target, and to expand gold zones in the Taylor and Carbon targets. The angle holes at Smith intersected substantial thicknesses of gold mineralization at various depths. All eighteen holes contain some intervals of anomalous gold mineralization. The assay results continue to indicate potential for significant near-surface oxide mineralized systems.
Highlights of the drill-hole assay results are presented below, and details are provided in the attached Table 1.
------------------------------------------------------------------------- Hole No. Target From (m) To (m) Interval (m) Gold (g/t) ------------------------------------------------------------------------- ------------------------------------------------------------------------- SUN-041 Smith 83 145 62 0.70 ------------------------------------------------------------------------- SUN-042 Smith 178 216 38 0.72 ------------------------------------------------------------------------- SUN-043 Smith 142 218 76 0.85 ------------------------------------------------------------------------- SUN-044 Smith 138 194 56 1.05 ------------------------------------------------------------------------- SUN-049 Smith 239 283 44 1.24 -------------------------------------------------------------------------
The scope of the 2009 drill program was broader than previous programs, because the new exploration permit allows disturbance on up to 200 acres. The earlier permit allowed only five acres of disturbance. The focus of the 2009 Newmont program was the Smith target, due to a series of higher-grade intercepts cut in historic drill programs on that target area.
Smith Target
The Smith gold exploration target, formerly called the East and West breccia targets, sits atop Smith Ridge and consists of mineralized breccias that are located about 1.5 km southeast of Bull Hill. The breccias contain a historical resource estimate (not NI 43-101 compliant) of about 7 to 8 million tons grading 0.023 opt Au *. The deposit was discovered by FMC in 1985 and subsequently drilled by International Curator and Coca Mines. Coca Mines collected a bulk surface sample of the mineralization for metallurgical testing. While the breccias themselves are low-grade, high-grade intercepts were cut in several drill holes, as noted below. The breccias are located within and adjacent to large blocks of Precambrian granite enveloped by a sequence of trachytic and phonolitic intrusive rocks. The target has potential for additional gold mineralization along strike and at depth. The zones of higher-grade mineralization may be structurally controlled.
A review of historical drill holes with high-grade gold mineralization within the Sundance property indicates that nearly all of the holes with the highest grades were drilled at the Smith target. This type of gold mineralization helps to reinforce the comparison of Sundance with the Cripple Creek system in Colorado, which also had high grades occurring along steep vein structures. Historical drill holes and intercepts with higher-grade assay results are listed below. These drill holes are primarily from the Smith target area.
- Drill-hole S-33 - 4.5 m @ 8.0 g/t Au (15 ft @ 0.23 opt) - Drill-hole S-34 - 3 m @ 5.7 g/t Au (10 ft @ 0.17 opt) plus 4.5 m @ 11.0 g/t Au (15 ft @ 0.32 opt) - Drill-hole S-35 - 1.5 m @ 33.9 g/t Au (5 ft @ 0.991 opt) within 9 m @ 5.7 g/t Au (30 ft @ 0.17 opt) - Drill-hole S-60 - 1.5 m @ 10.3 g/t Au (5 ft @ 0.30 opt) - Drill-hole S-81 - 6 m @ 5.8 g/t Au (20 ft @ 0.17 opt) - Drill-hole S-84 - 3 mt @ 4.8 g/t Au (10 ft. @ 0.14 opt) - Drill-hole SU 96-4 - 4.5 m @ 4.7 g/t Au (15 ft. @ 0.14 opt)
Newmont & Sundance
Newmont manages gold exploration at the Sundance Gold Venture and is in the 4th year of earning a 65% interest in the project by spending US$5 million over a five year period. Following a lengthy effort to permit disturbance on up to 200 acres, the 2009 exploration program was focused on the discovery of higher grade gold mineralization. The 45 exploration holes drilled by the Sundance gold venture to date all contain gold mineralization and are concentrated on the Smith, Carbon and Taylor targets.
Preliminary metallurgical bottle-roll and column leach tests were conducted on drill samples from the Carbon and Taylor targets. The initial column leach test results, which are more indicative of potential production, yielded 78.4 percent recovery at -3/4 inch crush size, 80.5 percent at -10 mesh (sand size), and 87.9 percent at -200 mesh (fine powder). These tests successfully provide the first indication of how the near-surface oxide gold mineralization might respond to leaching processes (see news release dated
The Bear Lodge property has a well- documented, hydrothermally altered and mineralized system with rock types, mineralogy, and structures that match major features of the alkaline-igneous gold exploration model as it is expressed at Cripple Creek. Past exploration efforts paid little attention to the Bear Lodge potential for deeper-seated, high-grade gold deposits targeted by this model. At the same time near-surface low-grade, bulk-tonnage gold mineralization has become more economically significant with the increase in gold price.
The exploration venture with Newmont maximizes potential for gold exploration at Bear Lodge, while allowing Rare Element Resources to continue evaluating the potential of its rare-earth-element (REE) deposits. Extensive high-grade REE occurrences in carbonatite dikes and their oxidized equivalents are flanked by several gold targets within the same alkaline intrusive complex.
* This historical resource estimate is mentioned as part of the historical record for the Smith target and was prepared before the introduction of NI 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Investors are cautioned that a qualified person has not completed sufficient work to classify the historical estimate as a current mineral resource. Neither the Company nor its personnel treat these data as defining a current mineral resource as defined under NI 43-101, nor do they rely upon them for evaluation purposes; however, these data are used to guide exploration as the Company develops data to confirm their validity and to support a current mineral resource estimate in accordance with the requirements of NI 43-101.
Rare Element Resources Ltd (TSX-V: RES) is a publicly traded mineral-resource company focused on gold and strategic metals such as the rare-earth elements. Paso Rico (USA) Inc, a subsidiary of Rare Element Resources, and Newmont
Rare Element Resources' Bear Lodge, Wyoming property also encompasses on of the largest disseminated rare-earth occurrences in
ON BEHALF OF THE BOARD Donald E Ranta, PhD, PGeo, President & CEO
Donald E Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, who take full responsibility for content. 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.
Table 1 Significant gold intercepts from the 2009 Sundance drill program ------------------------------------------------------------------------ ------------------------------------------------------------------------- Intercepts ---------- greater than 20ft 2009 Drill Holes ----------------- and greater than 0.40 --------------------- g/t Au ------ Average Highest Gold Assay Grade in Total Hole of Hole, Len- Len- Grade, Hole Depth Orient- Hole, g/t From To gth gth g/t Number ft Target Name ation g/t Au Au ft ft ft m Au ------------------------------------------------------------------------- SUN-040 500 Smith NW S30W, -45 0.25 2.09 40 65 25 7.6 0.86 340 390 50 15.2 0.54 SUN-041 500 Smith NW S45W, -45 0.44 1.28 140 245 100 30.5 0.42 275 480 205 62.5 0.70 SUN-042 755 Smith West S60W, -45 0.31 1.49 385 470 85 25.9 0.43 BX 545 565 25 7.6 0.49 585 715 125 38.1 0.72 SUN-043 720 Smith East due S, -67 0.46 1.95 470 720 250 76.2 0.85 BX SUN-044 989 Smith East S35W, -74 0.31 4.26 455 640 185 56.4 1.05 BX 670 695 25 7.6 0.61 915 935 20 6.1 0.69 965 985 20 6.1 0.41 SUN-045 520 Smith North due E, -45 0.19 1.93 220 245 25 7.6 0.78 375 400 25 7.6 0.76 SUN-046 1450 Smith Deep due N, -70 0.08 1.45 155 195 40 12.2 0.60 SUN-047 600 State Section S20E, -45 0.09 1.97 360 380 20 6.1 0.73 SUN-048 720 State Section S20E, -45 0.08 0.29 SUN-049 1249 Smith East S35W, -70 0.32 3.64 170 190 20 6.1 1.14 BX 620 642 22 6.7 0.44 791 935 144 43.9 1.24 SUN-050 740 Smith South S45W, -45 0.04 0.22 SUN-051 760 Taylor S40E, -45 0.23 1.52 5 25 20 6.1 0.50 55 100 45 13.7 0.47 120 140 20 6.1 0.42 170 190 20 6.1 0.67 250 290 40 12.2 0.71 SUN-052 620 Carbon SE - N45W, -45 0.11 0.98 ENE SUN-053 650 Carbon SE - S40E, -45 0.08 0.30 ENE SUN-054 520 Carbon SE - N45W, -45 0.10 0.34 ENE SUN-055 650 Taylor N60E, -45 0.08 0.30 SUN-056 700 Taylor S35E, -45 0.13 0.61 SUN-057 650 Carbon N20W, -45 0.09 0.55 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Figure 1. Sundance targets with 2009 drill-hole locations. ---------------------------------------------------------- To see Figure 1, please see URL below: http://files.newswire.ca/675/Figure1-Sundance-2009.doc
For further information: refer to the Company's website at www.rareelementresources.com or contact: Donald E Ranta, President & CEO, (604) 687-3520, [email protected]; Mark T. Brown, CFO, (604) 687-3520 ext 242, [email protected]
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