VANCOUVER, May 4 /CNW/ - Zimtu Capital Corp. (TSXv: ZC) (FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce its involvement in Quantum Rare Earth Developments Corp's ("Quantum") (TSXv: QRE) (FSE: BR3) acquisition of the Elk Creek Niobium-Rare Earth Element Carbonatite Project located in southeastern Nebraska.
Quantum has agreed to purchase all of the issued and outstanding common shares of 859404 BC Ltd. ("859404") a private British Columbia Company. In consideration for the common shares of 859404, Quantum will pay a total of $500,000 to 859404 and issue one common share of Quantum for each common share of 859404 issued and outstanding, subject to the acceptance of the TSX Venture Exchange.
As of April 26, 2010, 859404 had approximately 19.2 million shares outstanding; of which Zimtu owned 2.6 million shares. Zimtu currently holds 1.6 million shares of Quantum. Following the completion of the Elk Creek property transaction and the Australian Rare Earth transaction announced March 12, 2010, Zimtu will hold a total of approximately 4.7 million shares of Quantum.
Through its Nebraskan subsidiary, Elk Creek Resources Corp., 859404 secured individual agreements to acquire the mineral rights to the Elk Creek Carbonatite Project. The agreements are in the form of a five-year pre-paid lease, with an option to purchase the mineral rights at the end of the lease. The Elk Creek Carbonatite Project was held under a similar type of option agreement by the previous operator Molycorp, Inc. in the 1970's and 1980's. Zimtu was instrumental in the organization and management of 859404 from its inception in August, 2009 to the successful completion of the acquisition of the Elk Creek Carbonatite Project.
"We are pleased to announce the completion of this transaction with Quantum, the third completed with the company since late 2009. Zimtu has aided and supported the development of Quantum and will be a significant shareholder of the company," stated David Hodge, President of Zimtu. "The Elk Creek Carbonatite Project was highly sought after and took significant focus and effort from our team to acquire. The project has the potential to become a significant global resource of niobium and rare earth elements."
Elk Creek Carbonatite Project
The Elk Creek Carbonatite, located in southeastern Nebraska, is an intrusive complex of carbonatite and related rocks and is host to significant niobium and rare earth element (REE) mineralization. The Elk Creek Carbonatite is evidenced by diamond drilling in an oval-shaped magnetic and gravity anomaly approximately 7 kilometres in diameter, making it one of the largest known carbonatite complexes. According to the US Geological Survey, "The Elk Creek Carbonatite, located south of Lincoln, has the potential to be one of the largest global resources of niobium and rare earth elements (REE)" (http://water.usgs.gov/wid/html/ne.html).
Historic exploration of the property was conducted by the State of Nebraska, Cominco American and Molycorp, Inc. during the 1970's and 1980's. At least 113 core holes were completed within the outline of the 7-kilometre diameter geophysical anomaly. Detailed drilling of 25 holes was completed within a core zone, which identified high-grade niobium mineralization. This drilling resulted in a historic resource estimate of "39.4 million tons of 0.82% Nb(2)O(5) and is open to the north, west and at depth" (Molycorp, Inc. internal memorandum, Feb 05/1986).
All of the niobium and rare earth drill results and estimates of historic resources pre-date and are therefore non-compliant with National Instrument 43-101 ("NI 43-101") reporting standards. The Company is not treating the historical estimates as current mineral resources or reserves. The Company has not undertaken any independent investigation of the drill results or resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources and therefore the historical drill results and estimates should not be relied upon. The Company believes that these historical drill results and estimates provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration. The Company intends to confirm the resource estimate through drilling as soon as possible.
Molycorp completed wide-spaced drilling on roughly 610 metre centres surrounding the core zone, within the 7-kilometre diameter geophysical anomaly. Thick intersections of rare earth element (REE), niobium and phosphate mineralization were encountered in several of these holes. At least 18 of the surrounding holes intersected (greater than)20 feet (6.1 metres) of (greater than) 1.0% REO, while at least 17 of the surrounding holes intersected (greater than)10 feet (3.05 metres) of (greater than) 0.6% Nb(2)O(5). All drill intercepts reported here are down-hole measurements. The orientations of mineralized sections are unknown, and therefore, true thicknesses have yet to be determined. It is important to note that REO as reported here refers to rare earth oxide and in this case refers to the sum of lanthanum, cerium and neodymium oxides only. Results for the other rare earths are not available. Analysis was performed at Molycorp's internal laboratories, with check analysis at Skyline Laboratory, Colorado.
In addition to the core historic niobium resource zone, anomalous niobium mineralization was identified during the wide-spaced exploration drilling. Hole EC-40 located approximately 1.5 kilometres northeast of the core niobium resource zone intersected 24.4 metres of 1.01% Nb(2)O(5) and 0.31% REO. Hole EC-95 located approximately 1.2 kilometres southwest of the core niobium resource zone intercepted 10.5 metres of 0.70% Nb(2)O(5).
Three zones of anomalous REE mineralization were identified outside the core historic niobium resource zone, during the wide-spaced exploration drilling. The results of some of the holes are summarized below:
Hole ID From (m) To (m) Interval (m) REO (%)
------- -------- ------ ------------ -------
anomaly EC-93 149.4 289.6 140.2 2.19
Incl. 179.8 198.1 18.3 3.12
EC-43 243.8 256.0 12.2 2.83
295.7 323.1 27.4 1.52
anomaly EC-4 217.1 402.3 185.2 1.18
417.6 445.0 27.4 1.02
EC-41 304.8 335.3 30.5 1.19
365.8 396.2 30.5 1.28
EC-55 237.7 429.8 192.0 1.31
246.9 271.3 24.4 1.62
289.6 323.1 33.5 2.09
338.3 390.1 51.8 1.52
anomaly EC-1 198.1 219.5 21.3 1.05
225.6 234.7 9.1 1.08
EC-17 554.7 612.6 57.9 1.27
EC-19 187.5 253.0 65.5 1.13
627.9 661.4 33.5 1.02
EC-21 207.6 228.6 21.0 1.54
Several of these regional holes terminated in carbonatite. Petrographic and microprobe work completed by Molycorp indicates that the rare earth elements are hosted within the minerals bastnaesite, parasite, synchisite and lesser amounts of monazite. Niobium is hosted within pyrochlore.
Associated with the carbonatite and carbonatite breccias are lesser amounts of basalt, lamprophyre, and syenite. These Late Proterozoic-age intrusive rocks are situated approximately 200 metres below an almost flat-lying cover of Pennsylvanian-aged marine carbonate and shale.
Michael S. Cathro, P.Geo. and Neil McCallum, P.Geol. are the qualified persons responsible for the Elk Creek Carbonatite Project. They have read and approved the technical disclosure contained in this news release.
About Zimtu Capital Corp.
Zimtu continues to evaluate and acquire prospective resource properties to make available for sale or joint venture. As part of the Company's business, Zimtu provides mineral property advisory services and helps to connect companies with mineral properties of interest.
For additional information on our mineral property advisory services, and opportunities available, contact Ryan Fletcher, Corporate Development at 604.681.1568 or via email at firstname.lastname@example.org.
Zimtu Capital Corp. is a TSX Venture listed investment company that invests in, creates, and grows natural resource companies thereby providing a way for investors to participate and profit in the public company building process. The Company also provides mineral property advisory services helping to connect companies to properties of interest.
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
Phone: (604) 681 1568
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.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this news release include Zimtu's receiving of shares and/or cash for its role as vendor or finder of certain mineral properties, Zimtu's evaluation and acquiring of properties for partnership and Zimtu's providing mineral property advisory services and assisting to connect companies with mineral properties of interest.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.
SOURCE Zimtu Capital Corp.
For further information: For further information: Kevin Bottomley, Shareholder Services, Phone: (604) 681-1568, Email: email@example.com, Website: http://www.zimtu.com