RPA recommends a preliminary economic assessment
VANCOUVER, Feb. 13, 2012 /CNW/ - Search Minerals Inc. ("Search" or the "Company") (TSXV: SMY) and its wholly-owned subsidiary, Alterra Resources Inc., have filed an
independent NI 43-101 compliant Technical Report, including a Mineral
Resource Estimate, on the 100% owned rare earth element (REE) Foxtrot
Project near Port Hope Simpson, Labrador, Canada.
The Mineral Resource estimate is based on two phases of drilling
comprising 8,078 m in 43 drill holes completed as at September 30,
2011. This information includes intersections to a depth of 200m.
Initial results from the current third phase drill program, reported in
the Search news release of February 1, 2012, demonstrated continuity of
the zone to a 400 m vertical depth. (see geological cross section
accompanying this news release).
The report, prepared by Roscoe Postle Associates Inc. (RPA), concludes
"The Mineral Resource estimate uses a cut-off grade of 130 ppm
dysprosium. Using preliminary assessments of metal prices and
metallurgical recoveries, this reporting cut-off, which corresponds to 150 ppm for the oxide form, Dy2O3, produces an NSR considerably higher than the anticipated cost of mining
and processing ore. Even with changes and uncertainties in the metal prices, recoveries
and costs, material with more than 130 ppm Dy meets the requirement of
the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Definition Standards: that Mineral Resources have a reasonable prospect
of economic extraction."
"As such, these (Indicated) resources can be used for mine planning."
"Within the Felsic Zone that hosts the rare-earth mineralization, the
mineralization with economic potential is hosted in bands of felsic
volcanics that are inter-layered with mafic bands. The first two phases
of drilling have confirmed that it is possible to visually identify the
felsic mineralization from the mafics. Statistical analysis of the
multi-element inductively coupled plasma (ICP) data for the resource
estimation studies also suggests that it is possible to identify the
felsic material using automated classification based on major-element
chemistry. The combination of a characteristic visual appearance and a
characteristic multi-element signature creates many possibilities for
efficient and effective grade control. There are optical and chemical
sorting technologies that should be very effective at segregating the
higher-grade material from the mixed volcanics."
"Statistical analysis of the assay data from the felsic samples shows
that there is a bi-modal distribution in the felsic bands. With the higher-grade population having grades approximately five times
those of the lower-grade population, it may be possible to further
upgrade the run-of-mine material into an even higher-grade product in
fewer ore tonnes. To realize this possibility, a better understanding of the geology and
mineralogy of the two felsic populations is needed."
"The very strong correlations between the REEs will simplify grade
control. The entire rare earth suite of elements occurs as a single
package at Foxtrot Project, and a future mining operation will not have
to contend with the complications of having to mine material that has
low grades of some REEs in order to recover higher-grades of other
Ongoing testwork on the Foxtrot Project, carried out by SGS Mineral
Services under the direction of Dr. David Dreisinger, has resulted in
"Gravity separation testwork using Wilfley Tables indicate a good
recovery of REE material in the table concentrate. Work is continuing.
Heavy liquid separation test result found to be comparable with the
results of the gravity separation work.
Flotation testwork on various products and size fractions of the Wilfley
Table material continues, utilizing varying flowsheets and reagent
schemes to optimize REE recovery. Results for the work are pending.
Acid leaching and acid bake testwork is continuing; no results as this
is still in preliminary stage."
"RPA recommends that a Preliminary Economic Assessment be undertaken."
A revised Mineral Resource Estimate will also be produced when the Phase
III drilling program is completed and the geochemical data has been
received and interpreted.
Jim Clucas, President and CEO of Search Minerals remarks "This 43-101
report together with the very favourable locational logistics enhance
the possibility of the Foxtrot Project becoming Canada's first
producing REE mine. The recently completed Phase III drilling program
will greatly increase the Mineral Resource Estimate with new resources
at depth and along strike".
Exploration Program Update
The Port Hope Simpson REE District is 135 km long and 4 - 12 km wide,
consists of 4326 claims in 86 licenses, and occupies 1081 square
kilometres. Search has identified 9 REE prospects in the District,
including: Rock Rolling Hill, Rattling Bog Hill, Piperstock Hill,
Southern Shore, Toots Cove, Pesky Hill, HighREE Island, Foxtrot and
Ocean View. The Foxtrot Project occurs in the Fox Harbour mineralized
belt. Piperstock Hill, Southern Shore, Toots Cove and Pesky Hill occur
in a 13 km-long mineralized zone known as the HighREE Hills. The Ocean
View Prospect occurs in a 3 km-long mineralized zone known as the Ocean
View mineralized belt. The Fox Harbour, Ocean View and HighREE Hills
mineralized zones are considered very prospective for both HREEs and
Mohan Srivastava (P.Geo), an independent consultant, is the Qualified
Person (QP) responsible for the calculation and classification of the
mineral resource estimate disclosed in this press release; Mr.
Srivastava is also the QP for the RPA "Technical Report on the Foxtrot
Project in Labrador, Newfoundland and Labrador" (the "Technical
Report"). Scientific and technical information contained in this press
release which is not based on the Technical Report has been approved by
Dr. Randy Miller, Ph.D., P.Geo, the Company's Vice President
Exploration and QP.
Search Minerals Inc. (TSXV:SMY) is a TSX Venture Exchange listed
company, headquartered in Vancouver, B.C. Search is the discoverer of
the Port Hope Simpson REE District, a highly prospective light and
heavy REE belt located in southeast Labrador where the company controls
a dominant land position in a belt 135km long and up to 12km wide. In
addition, Search has a number of other mineral prospects in its
portfolio located in Newfoundland and Labrador, including a number of
claims in the Strange Lake Complex, where Quest Rare Minerals has an
earn-in agreement with the Company; and at the Red Wine Complex, where
Great Western Minerals Group has a Joint Venture with the Company.
Search Minerals is also the owner of patents relating to the Starved
Acid Leaching Technology ("SALT"), a process with the potential to
economically recover nickel and cobalt from known deposits currently
considered sub economic.
Search Minerals is led by a management team and Board of Directors with
a proven track record in the mining industry. The Company has
experienced geological and metallurgical teams led by Dr. Randy Miller
and Dr. David Dreisinger respectively.
All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at www.sedar.com.
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 of the adequacy or accuracy of this release.
This news release contains forward-looking statements that are not
historical facts, including potential mineralization, reserve and
resource determination, exploration results, and future plans and
objectives of the Company. Forward-looking statements involve risks,
uncertainties and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially from these
forward-looking statements include those risks set out in Search's
public documents filed on SEDAR at www.sedar.com. Although Search believes that the assumptions and factors used in
preparing the forward-looking statements are reasonable, undue reliance
should not be placed on these statements, which only apply as of the
date of this news release, and no assurance can be given that such
events will occur in the disclosed time frames or at all. Except where
required by law, Search disclaims any intention or obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Image with caption: "Foxtrot REE Project North-South Cross-section, SE Labrador (Search Minerals Inc.) Illustrates steeply dipping tabular nature of strataform REE mineralization (FT 3 unit) hosted in felsic volcanic rocks in a bimodal volcanic package. Resource Estimate: 9.26 million tonnes combined Indicated and Inferred. (CNW Group/Search Minerals Inc.)". Image available at: http://photos.newswire.ca/images/download/20120213_C3563_PHOTO_EN_10024.jpg
SOURCE Search Minerals Inc.
For further information:
President & Chief Executive Officer