VANCOUVER, Nov. 24 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES) ("Rare Element" or the "Company") has now signed the definitive agreement with VMS Ventures Inc. ("VMS") to acquire the Eden Lake REE project in Manitoba, Canada. The TSX Venture Exchange has also approved the transaction and Rare Element is now in the process of issuing the common shares to VMS and transferring the claims into Rare Element's name.
The Company acquired a 100% interest in the Eden Lake REE Project for the issuance of 300,000 common shares to VMS, with 75,000 at closing, and 75,000 at 6, 12, and 18 months thereafter. The Eden Lake project is subject to a 3% Net Smelter Returns ("NSR") royalty to Strider Resources Limited and Rare Element has the right to buy 50% of the NSR for $1.5 million.
Eden Lake Rare Earth Element Project, Manitoba, Canada
The Eden Lake REE Project is located 35 kilometers northwest of Leaf Rapids, Manitoba. In 2003 VMS, which was then called Rare Earth Metals Corp., performed detailed geological mapping, sampling, and petrographic studies that led to the discovery of an extensive area (approximately 8 square kilometers) of hydrothermal stock-work veining, magmatic carbonatite dikes, and breccia exposed in outcrop. Carbonatite dikes and plugs were discovered at three locations, and the property geology has characteristics that suggest a large carbonatite complex.
REE-enriched minerals identified in petrographic studies include strontium-REE-apatite, britholite, allanite, and REE mineral inclusions in andradite garnet. REE enrichments occur in all hydrothermally metasomatized rocks. The highest REE concentrations encountered by VMS are in the carbonatite dikes (up to 1.6% total REO, 9,764 ppm Sr, and 745 ppm Y), and in hydrothermal REE-rich veins (up to 13.8% total REO and 5,307 ppm Y). VMS also discovered heavy REEs (Eu-Lu) on the project during their field work. Rare Element will be evaluating the carbonatite complex, which may have similarities to the Company's Bear Lodge project, and the heavy rare earths plus yttrium in the hydrothermal veins.
A drill program was completed on the project in 2006, and the holes provided additional favourable geologic indications for a carbonatite complex, but without hitting significant REE grades. Six holes for a total of 765 meters were drilled in the northeastern half of the 8 square kilometer zone of intensely altered rocks. Most of the favourable targets have not been adequately tested, and additional exploration of the project for yttrium and heavy rare earths is warranted.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on rare-earth elements and gold. In addition to the REE exploration and evaluation efforts, the Company and Newmont have entered into the Sundance gold exploration joint venture on the Company's Wyoming property. Newmont has the right to earn a 65% working interest in Rare Element Resources' property, excluding any rights to the rare-earth elements and uranium but including rights to gold and other metals, by performing US$5 million in property work expenditures over a five-year period. Newmont also has the right to earn an additional 15% working interest by completing a positive project feasibility study. Gold exploration drilling began in July for the 2009 program, and rare-earth drilling began in August.
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.
SOURCE RARE ELEMENT RESOURCES LTD.
For further information: For further information: refer to the Company's website at www.rareelementresources.com or contact: Mark T Brown, CFO, (604) 687-3520 ext 242, firstname.lastname@example.org; Donald E Ranta, (604) 687-3520, email@example.com