14 www.resourceworld.com J U L Y 2 011

After an impressive run-up in share prices, some rare earths companies have seen their shares decline. This is a reflection of pre-vailing investor sentiment and not because there is anything going wrong with the expanding rare earths sector – they are more in demand than ever.

Briefly, there are 15 rare earths (REEs) in the periodic table, with a couple more elements that are usually part of that group. REEs are used for many different applications such as consumer electronics, military hardware, lasers, X-ray machines, magnets for electric motors in vehicles, speakers, camera lenses, computers, oil refineries, to name just a few.

At the present time, China produces about 97% of the world’s REEs and has imposed

export quotas on these valuable metals. This has resulted in huge price gains for REEs. In the last year or so, the price of cerium oxide has risen 8,937%, lanthanum oxide is up 6,871% and neodymium oxide is up 1,298%. Most of the other REEs have also seen spectacular gains.

These price rises are the direct result of events in China. In the past, China essentially subsidized its rare earths min-ing operations for years. Cheap labour, and a lack of environmental stewardship, kept costs low, leading to dramatic price declines of rare earths. China’s crackdown on environmentally lax mines, rising labour costs as well as its own increasing domestic demand and export restrictions, have caused prices of REEs to soar. It is

expected that China will produce about 118,000 tonnes of REEs this year; how-ever, exports are forecast to be only 30,000 tonnes. Indeed, China’s strong domestic demand for REEs may lead to the coun-try becoming a net importer – that is, if enough REEs are available for import.

The availability of some REEs has reached the critical stage, including neo-dymium, terbium and dysprosium. China is the only country that produces dyspro-sium. This is a problem for the rest of the world, which also need REEs, especially major electronic manufacturing countries such as Japan and South Korea.

While REEs explorers have been buoyed by the rising commodity prices, there is a downside to crazy-high prices as

RARE EARTHS HUNT SPREADS AROUND THE WORLD

Finding rare earths deposits is tough enough, but it’s even harder to figure out the metallurgy and to build processing plants by Ellsworth Dickson

An aircraft delivers workers and supplies to the Commerce Resources Eldor Rare Earths Project 130 km south of the community of Kuujjuaqin northern Québec. Photo courtesy Commerce Resources Corp.

J U L Y 2 011 www.resourceworld.com 15

was noted by Ron Stravlo, President of Oklahoma-based TDK Ferrites Corp. His company is a major supplier of rare earth magnets for the auto industry.

During his recent presentation at the Cambridge House Critical Metals Symposium, Stravlo pointed out that he has long-term contracts at set prices for magnets with Ford, GM, Toyota, and oth-ers. This means that he can’t increase the prices of magnets he sells to car compa-nies. He said if prices go much higher, his engineers will be forced to look for ways to make high-power magnets without using REEs. Of course, a development such as this would result in neodymium prices falling. Obviously, there is a price limit where REEs usage becomes uneconomic.

There are also serious metallurgical chal-lenges that face REEs recovery. Rare earths usually contain 17 different rare earth elements in varying quantities. The trick is to economically separate all of them to produce separate elements. This involves sophisticated metallurgical studies and very expensive processing facilities. Complicating the picture is the fact that each of the 17 REEs has its own supply-demand scenario.

Nevertheless, a the present time, dozens of junior rare earth explorers are seeking economic deposits in many locales with an estimated 437 rare earths projects under way.

Alix Resources Corp. [AIX-TSXV;

37N-Frankfurt] has 100% interests in three separate claim groups, adjacent to the Critical Elements Pivert/Rose property in north-central Québec. The claims cover the same general geology as ground owned by Critical Elements and are prospective for tantalum, lithium and rare earths.

Alkane Resources Ltd. [ALK-ASX; ANLKY-OTCQX], based in Western Australia, holds the advanced-stage Dubbo Project in New South Wales, which hosts zirconium, niobium and REEs. See

Australian Update page 43 for Alkane article.

Arafura Resources Ltd. [ARU-ASX] plans to become a supplier of rare earth oxides, phosphoric acid, uranium oxide and gypsum from its 100%-owned Nolans Project, which comprises opera-tions at two sites in Australia; the Nolans Bore Mine in the Northern Territory and the Whyalla Rare Earths Complex in South Australia. Annual production of 20,000 tonnes of rare earth oxides from the Whyalla Rare Earths Complex, equiva-lent to about 10% of the world’s supply, is scheduled for 2013.

Artha Resources Corp. [AHC-TSXV] reports exploration is under way at its properties in Jujuy Province, Argentina, including detailed mapping and sampling of the veins and surrounding rocks. Multi-vein hydrothermal systems with veins have been observed up to two metres wide and up to three km long at the Susques REE Project.

Atocha Resources Inc. [ATT-TSXV] recently acquired additional REE proper-ties in Montviel Township, Québec. The two properties cover favourable geology, based on magnetic highs and lows. The company now holds some 2,800 hectares of land, prospective for REEs, in the Montviel Complex,via the Sol Riche and newly-acquired Tresor Nord and Sud properties.

Avalon Rare Metals Inc. [AVL-TSX, NYSE Amex] is focused on its 100%-

owned, advanced, development stage project, Nechalacho REEs deposit in the Northwest Territories. Avalon believes that the Nechalacho is one of the high-est-quality, undeveloped REEs deposits in the world, enriched with heavy rare earths. Avalon also owns four other rare metals and minerals projects in Canada, three of which are at advanced stages of development.

At the Nechalacho Project, at Thor Lake, subsequent to the completion of the prefeasibility, and incorporating the results of the 2010 summer program, indi-cated resources increased to 57.49 million tonnes of 1.56% TREO (total rare earth oxides) with 20.72% heavy rare earth oxides (HREO)/TREO in the Basal Zone. The same update resulted in the inferred resources increasing to 226.88 million tonnes of 1.30% TREO with 14.33% HREO/TREO. Advanced mineralogical and metallurgical studies are under way.

Bolero Resources Corp. [BRU-TSXV; U7N1-Frankfurt] is flying 4,007 line-km of airborne geophysical surveys on its large Carbonatite Syndicate REE property north of Prince George, central British Columbia. Soil sampling programs in 2010 on the Carbonatite Syndicate property increased REE soil sample values. Assays from soil grids increased maximum concentrations of cerium and lanthanum up to 1205 ppm and 663 ppm, respectively, far exceeding

Left to right, the Artha Resources team, Todd McMurray, President, Alberto Stepanenko, Country Manager, Charles Straw, CEO, explore the Susques Project in Jujuy Province, Argentina. Photo courtesy Artha Resources Corp.

16 www.resourceworld.com J U L Y 2 011

previous results of 631 ppm and 377 ppm. Thirty of 228 soil samples returned total REE+yttrium contents above 1,000 ppm and show elevated levels of pathfinder ele-ments such as niobium and barium. The Carbonatite Syndicate property comprises 211 claims covering over 90,000 hectares contiguous to the Spectrum Mining REE deposit.

In addition, Bolero is flying 3,084 line-km on its Charge REE prospect 50 km southeast of the Kemess Mine, northern BC. The Charge prospect hosts the high-est lanthanum (1,146 ppm), yttrium (647 ppm), and second highest cerium (1,247 ppm) samples in BC’s regional geochemical survey database. Summer exploration pro-grams, including drilling, are planned for both REE projects.

Canada Rare Earths Inc. [CJC-TSXV; CJCFF-OTCBB] is exploring its 100%-owned Goeland REE Project 215 km north of Val d’Or, Québec, straddling GéoMégA’s Montviel property on the east and west. The company has identified two high pri-ority sectors and diamond drilling should start in July.

Cache Exploration Inc. [CAY-TSXV] is active on its REE projects that include the Welsford properties near St. John, New Brunswick, the Cross Hills property near Grand Le Pierre, Newfoundland and the Louil Hills property near Musgravetown on the Bonavista Peninsula, eastern Newfoundland where an exploration program is under way. Claims adjoin-ing the southeast portion of the Louil Hills property are being explored by KAT Exploration. Cache is acquiring Rockbridge Resources Inc. [RBE-TSXV] for $275,000. Rockbridge owns 343 claims in Newfoundland adjacent to Cross Hills.

Canadian International Minerals Inc. [CIN-TSXV] has eight REE projects in British Columbia as well as the Prairie Lake and Dead Horse Creek properties about 45 km northwest of Marathon, Ontario. Exploration is under way at Prairie Lake and Dead Horse Creek with samples sent for assay. At the road-accessible Carbo claims, 80 km north of Prince George, BC, nine potential drill targets have been defined from a review of airborne geo-

physics and a compilation of all soil geochemistry and geological mapping con-ducted by CIN, Commerce Resources Corp. and Teck Resources Ltd. [TCK.B-TSX]. Planning includes diamond drilling four of these targets (A, B, C & D). Progression on targets will be determined by ongo-ing results. The Carbo property is 75% optioned from Commerce. In February 2011, CIN reported encouraging drill results from the Carbo Project. Hole CA10-001 inter-sected 4.07% TREO across 2.12 metres; hole CA10-002 cut multiple intervals of mineral-ized carbonatite from 1.15 to 3.17 metres across, with peak values of 3.70% across 1.15 metres; hole CA10-006 cut 1.43% TREO across 37.3 metres and hole CA10-008 cut 3% TREO across 3.0 metres.

Commerce Resources Corp. [CCE-TSXV; CMRZF-OTCQX; D7H-FSE], in addition to its 25% interest in the Carbo Project in BC, has received favourable exploration results from its 100%-owned Eldor REE Project in the Ungava region of the Central Labrador Trough, northern Québec. Commerce has been conducting further drilling to follow-up on favourable drill results, including 61 metres of 1.41% TREO, of which 14.56% were HREO. The Ashram deposit at the Eldor Project hosts an initial NI 43-101 resource of 117.34 million tonnes averag-ing 1.74% TREO.

Critical Elements Corp. [CRE-TSXV; FGEXF-OTCQX; F12-Frankfurt], for-merly First Gold Exploration, holds rare earths and tantalum-niobium projects in Québec, including the Gatineau, Lac Sevigny-NE, Melasse, Sophie, Weres, Reine, Seigneurieand J6L1, as well as the Rose Tantalum-Lithium.

Dacha Capital Inc. [DCHAF-OTCQX] is not an explorer, rather, it stockpiles rare earths. Currently the company has stockpiled 86,000 kilos of dysprosium, gadolinium, lutetium, neodymium, ter-bium and yttrium in South Korea and Chaina.

Elissa Resources Ltd. [ELI-TSXV] is exploring the 100%-owned Thor REE Project in southwest Nevada which features multiple, heavy-enriched rare earths. The project is 26 km from Molycorp’s Mountain Pass REE Mine. The Thor Project includes a

2.5 km long REE structural zone with HREE and LREE grading to over 10%. Elissa has completed extensive sampling which generated drill targets. Other targets were identified by airborne geophysical surveys, about 30 targets in all. A 15,000m drill-ing program is planned for later this year. Elissa does not have an arrangement with Molycorp to process Thor REE ore; how-ever, at a later date, this would make sense.

Fieldex Exploration Inc. [FLX-TSXV; F7E-Frankfurt] plans to drill its 100%-owned Lac Sairs property in northwest Québec. The Lac Sairs property is in the Kipawa alkaline complex, 1.7 km from the Matamec Kipawa REE-yttrium-zirconium deposit. The Phase III drilling program of about 2,000 metres is aimed at finding and defining the extension of hole LS-10-19 that returned 1.51% ZrO

2 over 62 metres

and to test other targets.Focus Metals Inc. [FMS-TSXV] is a mid-

tier, junior exploration and mining company with flake graphite, REEs, precious and base metals properties in Québec. Focus and part-ner SOQUEM Inc. have reported results of the drill core re-analysis program targeting the Josette and Fluorine polymetallic (Fe-Cu-REE-P) prospects on the Kwyjibo property. At Josette, drilling returned 2.52% TREO, 0.15% copper, 3.70% P

2O

5, 49.9% Fe

2O

3,

42.3% REE and 28% HREO over 29.98 metres, including 4.51% TREO, 0.24% cop-per, 6.67% P

2O

5, 61.37% Fe

2O

3, 43.4% REE

and 29% HREO over 4.20 metres. Drilling at Fluorine returned 0.80% TREO, 0.01% cop-per, 3.04% P

2O

5, 46.84% Fe

2O

3, 42.5% REE

and 31% HREO over 15.33 metres, includ-ing 1.75% TREO, 5,98% P

2O

5, 35.50%

Fe2O

3, 41,2% REE and 30% HREO over 1.49

metres.Forum Uranium Corp. [FDC-TSXV;

FDCFF-OTC] has discovered a REE occurrence upon review of its uranium geochemical databases in Saskatchewan and Nunavut. Subsequent follow-up explo-ration identified alkaline intrusive rocks outcropping over a 10 by 10 km area 13 km southeast of Areva’s Kiggavik uranium deposit in Nunavut. The Nutaaq area is 100%-owned by Forum. About 900 grab samples were collected over the North Thelon Project during uranium explora-

J U L Y 2 011 www.resourceworld.com 17

tion. Of 255 samples collected in the Nutaaq area, 155 returned 0.1%–3.8% TREO. These REEs are accompanied by elevated levels of zirconium, niobium and tantalum.

GéoMégA Resources Inc. [GMA-TSXV] has acquired a 100% interest in the Montveil and a 100% option on the Pump Lake REE projects in northern Québec. NioGold Mining Corp. [NOX-TSXV] will retain a 2% net output return royalty. Recently, good drill results from Montveil have proved up continuity of REE mineralization.

Globex Mining Enterprises Inc. [GMX-TSX; GLBXF-OTCQX; G1M-Frankfurt] has been exploring its Turner Falls REE Project in the Kipawa area of Québec since 2009 with encouraging light and heavy rare earths assays reported.

Gold Canyon Resources Inc. [GCU-TSXV] has entered into a Joint Exploration Agreement with and Japan Oil, Gas and Metals National Corp. (JOGMEC) to explore the Kratz Spring IOCG deposit in Franklin County, Missouri, to investigate potential REE mineralization.

Great Western Minerals Group Ltd. [GWG-TSXV; GWMGF-OTCQX] ] is a REE processor that makes specialty alloys at its 100%-owned subsidiaries, Less Common Metals Ltd., Birkenhead, UK, and Great Western Technologies Inc., Troy, Michigan. The company has an off-take agreement for all its REEs produced at the past-producing Steenkampskraal Mine in South Africa and holds 20.8% ownership in Rare Earth Extraction Co. Ltd., owner of the mine. Great Western also has interests in eight exploration and development properties in North America and Africa, including the 100%-owned, advanced-stage, Hoidas Lake Project, which has one of the highest proportions of neodymium in any known REE deposit. The road-accessible Hoidas Lake Project is 50 km northeast of Uranium City, Saskatchewan. The company reported 2.31% TREO from its Douglas River REE Project in northern Saskatchewan.

Greenland Minerals and Energy Ltd. [GGG-ASX; GDLNF-Pink Sheets] is explor-ing its flagship Kvanefjeld Project, a giant multi-element deposit (REEs-uranium-zinc) near the southwest tip of Greenland. Pre-feasibility studies indicate that the

large quantity of resources could sustain a large-scale, viable mining operation for decades. The project could potentially sup-ply over 20% of global REE demand at low cost owing to revenues from uranium and zinc. Drilling has confirmed that extensive mineralization occurs up to seven km away from the main Kvanefjeld resource.

Greenlight Resources Inc. [GR-TSXV] can earn a 100% interest in the Porcupine-Upper Miramichi REE property in New Brunswick. The primary target is the various REEs discovered in soil samples in 2007. Soil assays include 218 grams samar-ium/tonne and 1,190 grams neodymium/tonne. Other REEs also returned encourag-ing values.

Hinterland Metals Inc. [HMI-TSXV] reports exploration is underway at the Kipawa REE Project, 140 km south of Rouyn-Noranda, Québec. The area has long been known for its REE-zircon-yttrium potential, generally related to the Kipawa Syenite Complex , which occurs as a 100 to 300 m thick, sheet-like body which can be traced around an arc-like structure for almost 100 km. The Kipawa property is about 30 km west of Matamec’s Zeus REE-zircon-yttrium deposit.

Hudson Resources Inc. [HUD-TSXV; HUDRF-OTCQX] has awarded the Preliminary Economic Assessment for its Sarfartoq REE Project in Greenland to Wardrop. The study will be completed this fall. Hudson produced an initial NI 43-101 resource estimate for the ST1 Zone of 14.1 million tonnes averaging 1.51% TREO. The ST1 Zone contains one of the industry’s highest ratios of neodymium and praseo-dymium to TREO, at 25%. Currently, the ST1 inferred resource contains over 40 mil-lion kg of neodymium oxide.

International Bethlehem Mining Corp. [IBC-TSXV] has signed an amending agree-ment with 0847427 BC Ltd. to accelerate the acquisition of its previously optioned Myoff Creek REE property, 55 km north-west of Revelstoke, BC. The carbonatite rocks at Myoff host tantalum, niobium and lanthanum, cerium and neodymium. The zone of economic interest is a discrete sheet-like body of intrusive carbonatite (formerly known as the REN carbonatite).

The carbonatite has been trenched, chan-nel sampled and mapped over a strike length of about 1,000 metres at thicknesses varying from less than 10 to 80 metres in true thickness.

International Montoro Resources Inc. [IMT-TSXV] has acquired the 2,268-hect-are Chuchinka claim group adjacent to the Spectrum Mining Wicheeda rare earth discovery and adjoins the Canadian International Minerals/Commerce Carbo Project, north of Prince George, BC. Exploration is planned.

Lynas Corporation Ltd. [LYC-ASX] holds the Mount Weld REE Project in Australia, which hosts 17.49 million tonnes of 8.1% REO and production is planned. Australian Mine Design and Development Pty prepared preliminary pit optimizations, pit designs and mine schedules. The work confirmed the simplicity and low risk of a mining oper-ation, and the low overall strip ratio for the pit (4.6:1).

Matamec Explorations Inc. [MAT-TSXV] reported metallurgical test results to recover rare earths values from its Kipawa deposit on the Zeus property, 140 km south of Rouyn-Noranda, Québec. The objective is to develop a high-value, low-cost REE deposit. A preliminary economic assess-ment study will soon commence on the Kipawa deposit. The PEA will be based on a new mineral resource estimate. At a cut‐off grade of 0.50% TREO, there are resources of 15,800 tonnes of TREO, including 1,600 tonnes of HREO and 3,500 tonnes of Y

2O

3 –

yttrium, and of 22,100 t of ZrO2 – zirconium

– in the indicated category, as well as 31,200 tonnes of TREO, including 3,400 tonnes of HREO and 7,100 tonnes of Y

2O

3, and 45,900

tonnes of ZrO2 in the inferred category.

Medallion Resources Ltd. [MDL-TSXV] is exploring the 65%-optioned Eden REE Project, western Manitoba, and the Red Wine REE Project in southern Labrador. The Red Wine intrusions are a major new HREE area play. Participants include nine publicly traded companies, two private companies and 12 private parties.

Midland Exploration Inc. [MD-TSXV] reports a summer exploration program, including drilling, was approved on the Ytterby REE Project, in partnership

18 www.resourceworld.com J U L Y 2 011

with Japan Oil, Gas and Metals National Corporation. Last year, airborne geophysics and prospecting identified two new major alkaline systems enriched in REEs on the Ytterby 2 and Ytterby 3 properties located, respectively, 65 km and 100 km south of the Strange Lake – B-Zone REE project area, Québec/Labrador. To date, on Ytterby 2, 29 mineral occurrences were discovered with values for TREO, plus yttrium oxide ranging from 0.3 to 18.0%. The proportion of HREO and yttrium oxide represents 1.43 to 83.7% of values for TREO+Y

2O

3. All the new min-

eral prospects are open in all directions. Montero Mining & Exploration Ltd.

[MON-TSXV] is focusing on its flagship Wigu Hill Project in Tanzania, which hosts high TREO grades and enriched in lantha-num, cerium and neodymium. Trenching on the eastern Twiga Target Zone, at Wigu Hill, returned the highest grade sample trench interval to date of 27.25% TREO over 0.73-metre true width. Plans for 2011 include mapping, trench sampling, and diamond drilling to define a resource.

Molycorp Inc. [MCP-NYSE] is produc-ing rare earths at its Mountain Pass REE Mine, Southern California, and plans are in place to bring the facility back into full production following extensive mod-ernization and expansion. With federal assistance for research, development and capital costs, Molycorp is prepared to move forward to re-establish domestic manufac-turing capacity on an expedited basis.

NEO Material Technologies Inc. [NEM-TSX] is a producer, processor and developer of neodymium-iron-boron magnetic pow-ders and zirconium-based, engineered materials and applications and other rare metals through its Magnequench and Performance Materials divisions.

Nuinsco Resources Ltd. [NWI-TSX] has received some assays from the first hole at its Prairie Lake REE project near Marathon, Ontario. Once complete, drill results will be incorporated into a revision of the NI 43-101 compliant exploration target mineralization inventory that demonstrates the huge scale and potential economic significance of the 100%-owned project.

Orion Metals Ltd. [ORM-ASX] has been receiving encouraging preliminary rock

chip samples taken from the Killi Killi West REE prospect in Western Australia. Sixteen samples were taken over a 150-metre strike length of outcrop similar to that at the Killi Killi East prospect 10km east and averaged 0.32% REE (3,210 ppm). Airborne geo-physics was recently completed.

Pacific Wildcat Resources Corp. [PAW-TSXV] is conducting a 1,700-metre drilling program at the Mrima Hill niobium and REE project in Kenya, Africa. The goal of the program is to show further evidence of the depth potential of the Mrima Hill deposit with higher-grade niobium and REE mineralization associated with the weathered zone. In addition, portions of the diamond core will be utilized for met-allurgical test work for niobium and REEs. See Pacific Wildcat article in Resource World last month.

Pele Mountain Resources Inc. [GEM-TSXV; GOLDF-OTCQX] has begun a 7,000-metre drill program at its 100%-owned Eco Ridge Mine REE and uranium project at Elliot Lake, Ontario. Indicated resources are 51.9 million lbs TREO and 15.2 million lbs U

3O

8. Inferred resources are 96.3

million lbs TREO and 31.4 million lbs U3O

8.

Quantum Rare Earth Developments Corp. [QRE-TSXV] has begun fieldwork at its 100%-owned Jungle Well and Laverton REE projects, Western Australia. The Jungle Well Project is less than 200 km west of the Lynas Mount Weld Project. The target is a carbonatite-hosted REE deposit similar to Mount Weld. At Jungle Well, historic sampling in 2007, adjacent to a circular mag-netic anomaly, returned 6.98–8.07% REEs. Follow-up exploration in 2009 returned 5.74% and 8.29% REEs. The current pro-gram will confirm historic results and evaluate potential for a large, high-grade, REE deposit. The Laverton REE Project is about 45 km north of Mount Weld.

Quest Rare Minerals [QRM-TSXV; NYSE Amex] is exploring several REE projects in the Strange Lake area, on the Québec-Labrador border; the Kenora area, northwest Ontario; and the Plaster Rock area, New Brunswick. Quest and Search Minerals Inc. reported the first results from drilling on the Alterra (Search) Strange Lake Option Project, Québec. Holes ALT-11-001 to ALT-11-004

returned high-grade TREO intersections 1.10%–4.37% over thicknesses 1.15–46.0 metres. Enrichment in zirconium (ZrO

2),

niobium (Nb2O

5) and hafnium (HfO

2) charac-

terizes the mineralization. On Quest’s B Zone REE deposit at

Strange Lake, a NI 43-101 preliminary resource estimate by Wardrop hosts indi-cated resources of 36.4 million tonnes grading 1.16% TREO, 2.17% zirconium oxide (ZrO

2), 0.24% niobium pentoxide

(Nb2O

5), 0.05% hafnium oxide (HfO

2) and

0.12% beryllium oxide (BeO). Inferred resources are 14.4 million tonnes of 1.11% TREO, 2.02% ZrO

2, 0.21% Nb

2O

5, 0.05%

HfO2 and 0.09% BeO.

Rare Earth Metals Inc. [RA-TSXV] reported drill results from the Clay-Howells Project 40 km north-northeast of Kapuskasing, Ontario. Drilling was designed to test a number of magnetic targets outside of the Clay-Howells Main iron/REE/niobium deposit. Hole CH-11-02, on a magnetic high anomaly, three km northeast of the Clay-Howells Main iron/REE/niobium zone, intersected 26.9 metres of 0.12% TREO, 51.55% Fe

20

3, 0.07% Nb

2O

5. The company

has finalized its negotiations to acquire the Lavergne REE prospect in Springer Township, Ontario, where drilling in 1969 intersected 0.98% REO over 112.7 metres, including 1.22% REO over 63.3 metres.

Rare Element Resources Ltd. [RES-TSX; REE-NYSE Amex] reported an upgraded NI 43-101 resource estimate of REEs, plus yttrium, contained in three deposits in the Bull Hill area of the Bear Lodge Project, Wyoming. The estimate upgrades 4.9 mil-lion tons to the indicated category and increases the total pounds of REO in the Bull Hill high-grade deposits by 20% from 1,210 million pounds to 1,450 million pounds at a 1.5% REO cut-off grade. The new resource estimate is derived from an REE database that includes 86 core drill holes.

Redhill Resources Corp. [RHR-TSXV; A3N-FSE] completed a 4.5 line-km induced polarization survey at its Honey Comb Hills Rare Earth Project, Juab County Utah. A number of prospective anomalies were identified. Initial surface sampling returned up to 1,043 ppm TREO, 1690 ppm lithium, over 1000 ppm beryllium

J U L Y 2 011 www.resourceworld.com 19

and 1270 ppm rubidium. Redhill recently acquired a 100% interest in the Morgan claims in the Wicheeda carbonatite belt, central BC. The 4,200-hectare property is about seven km east of the Canadian International Minerals Carbo property.

Search Minerals Inc. [SMY-TSXV] reported positive results from Phase I drill-ing at its 100%-owned Foxtrot prospect in the Port Hope Simpson REE District, south-east Labrador. A 3,955-metre drill program has been completed on the Foxtrot light rare earth element Zr-Y-Nb Prospect. Assay results have been received and interpreted. A $1.1 million, Phase II, drilling program of 4,000 metres is under way.

Silver Spruce Resources Inc. [SSE-TSXV] reports field crews are mobilizing to the road accessible Labrador REE proper-ties, Pope’s Hill and MRT. Exploration will consist of prospecting and geological map-ping on the Pope’s Hill original claims where TREE values up to 24% were located in fall 2010 and the MRT (REE/uranium) prop-erty where values up to 8.95% TREEs and 1% U

3O

8 were located in 2010 and early

2011 during prospecting. Regional work to follow will consist of prospecting, stream sediment and possible bio geochemistry and geological mapping along the Pope’s Hill trend. Airborne radiometric –magnetic-VLF-EM surveys are planned for the entire Pope’s Hill trend including the Pope’s Hill, MRT and Pope’s Hill JV, a joint venture with Great West Minerals Group, for this sum-mer. Follow up of anomalies or showings and airborne surveys will be carried out late summer and early fall to allow trench-ing and drilling of targets in the late fall and early winter.

Spectrum Mining Corp. [private] com-pleted 11 drill holes on the Main Zone at its Wicheeda Project north of Prince George, BC. All holes intersected significant REE mineralization, including a 48.64-metre interval of 3.55% REE, a 72.0-metre interval of 2.92% REE, and a 144-metre interval of 2.20% REE in three separate holes. Mineralization is open in all direc-tions, including to the north of Wicheeda where the Montoro Chuchinka property is located.

Stans Energy Corp. [HRE-TSXV] is

developing the Kutessay II Mine, the only past-producing HREE mine in the world outside of China. Stans owns a 20-year mining licence for the property located in Kyrgyzstan, former Soviet Union. The company has completed a JORC-compliant mineral resource estimate as well as a sup-plementary REE distribution report which identifies the primary commercial compo-nents of the open pit mine. Stans released an internal metallurgical study which illus-trates ways of improving the quality of REO concentrates produced at Kutessay II.

Strategic Resources Inc. [UVR-TSXV] reports the State of New Mexico and the US Forest Service have granted permit approv-als and has begun exploration drilling on its Fluorite/REE Project in Lincoln County, New Mexico.

Tasman Metals Ltd. [TSM-TSXV; TASXF-Pink Sheets; T61-Frankfurt] is advancing its Norra Karr REE Project in southern Sweden, which hosts inferred REE resources of 60.5 million tonnes averaging 0.54% TREO with 53% HREO. Norra Karr has an unusually high proportion of yttrium and dyspro-sium. The base case resource estimate shows Dy

2O

3/TREO averages 4.8% and Y

2O

3/TREO

averages 35.1%.Texas Rare Earth Resources Corp.

[TRER-OTCQB] is exploring its Round Top Mountain REE Project in Hudspeth County, Texas, which is held under a 20-year renewable lease from the State of Texas to explore and develop a rare earth-uranium-beryllium prospect which includes niobium, tantalum and gallium.

Torch River Resources Ltd. [TCR-TSXV; TORVF-Pink Sheets; WNF-Frankfurt] has been exploring its Mt. Copeland REE-molybdenum prospect 23 km from Revelstoke, BC. The 100%-optioned Mt. Copeland was a past-producing moly mine. Assays from the rock and soil sampling are at the high end of the mineralization scale for rare earths. Samples contained elevated REEs where total REEs in sample AR20 were 26.13% and sample AR22 were 4.13%. See Torch River article in Resource World May 2011.

TNR Gold Corp. [TNR-TSXV] holds the Big Beaverhouse REE Project 450 km north of Thunder Bay, northwest Ontario. Partial

REE analyses conducted by the Ontario Geological Survey on historical drill holes in the 1980s noted up to 3,200 ppm lanthanum+cerium+neodymium. Of sig-nificance is the documentation of loparite [(Ce, Na, Ca) TiO

3] in the complex which

may contain up to 34% TREO.Ucore Rare Metals Inc. [UCU-TSXV] has

completed staking of additional REE pro-spective land holdings in the northern Ray Mountains region of central Alaska. Initial assays indicate 5% to over 30% combined valuable metals, with a total REE content ranging from 1–8%. The samples show high heavy REE content, generally ranging between 20% and 30% of total REEs, and high content of dysprosium.

Wealth Minerals Ltd. [WML-TSXV] is drilling on the Rodeo de los Molles prop-erty in San Luis province, Argentina. Initial drilling comprises a minimum of 30 holes (~2,000m) and will first target high-grade REE mineralization at the main Mina Norte and La Juli zones before stepping out to test newly defined areas. Recent results from surface channel sampling confirm the presence of outcropping high-grade REE mineralization. Additionally, 136 selected rock grab samples collected from outcrop and material quarried by the previous operator average 1.70% TREO with values ranging from detection limits to 28.9% TREO.

Zimtu Capital Corp. [ZC-TSXV; ZCT1-FSE] and a prospecting partner signed an agreement whereby Solace Resources Corp. [SOR-TSXV] can earn a 100% inter-est in the Blachford REE property 100 km southeast of Yellowknife, Northwest Territories, contiguous to Avalon’s Thor Lake REE Project. n