TSX-V: RES
VANCOUVER, Aug. 24 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES) (the
"Company") is pleased to announce that drilling has begun on the resource
expansion program for rare-earth-element (REE) mineralization on the Company's
Bear Lodge property of northeastern Wyoming. Drill-hole locations have been
chosen as step-offs of the known mineralization, to test other high-potential
targets, and to provide additional material for metallurgical testing of a
suite of samples that are representative of the entire rare-earth deposit (see
news release of June 15, 2009). Initial metallurgical testing of the
near-surface oxide portion of the deposit has provided very encouraging
results that could lead to a commercially viable process (see news release of
July 15, 2009). Metallurgical work is continuing at the Mountain States R & D
International laboratory near Tucson, Arizona.
The initial ten core holes of the drill program will test the updip
extension of oxide mineralization of the Bull Hill Southwest resource that
contains the bulk of the REE mineralization. Expansion of the deposit uphill,
above the defined resource area in the uppermost portion of the oxidized
carbonatite dikes, has potential to gain substantial additional tonnage of
oxidized mineralized material.
A number of drill holes will test the Bull Hill Northwest target, located
about 300 meters (1,000 ft) northerly from the Bull Hill Southwest target as
offsets to historical Hecla drill-hole WP-2. Angle hole WP-2 intercepted
nearly 56 m (186 ft) of near-surface, high-grade REE mineralization. Several
closely spaced holes will be drilled to determine and test the orientation and
continuity of the mineralization.
Most holes in the overall program are designed to offset known
mineralization; however a number of holes are planned to test new target
concepts. One of the target concepts is a large REE-mineralized carbonatite
plug hypothesized to occur at depth southwest of the Bull Hill diatreme. The
Company's geologists recognize the similarities of the Bear Lodge REE-bearing
carbonatites with the large Mountain Pass rare-earths deposit in California
and will be exploring for an analogous large system. Approximately 5000 m
(16,500 ft) of drilling are planned for the total 2009 program.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded
mineral-resource company focused on gold and strategic metals, specifically
the rare-earth elements. Rare Element Resources and Newmont have entered into
the Sundance gold exploration project 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.
Rare Element Resources' Bear Lodge, Wyoming property also encompasses one
of the largest disseminated rare-earth occurrences in North America (M.H.
Staatz, 1983, US Geological Survey Professional Paper 1049-D). In parallel
with the Sundance gold-focused exploration project, Rare Element Resources has
completed drilling of twelve holes, estimation of an inferred resource (NI
43-101 compatible), and testing of metallurgical samples to independently
advance the rare-earth potential of its property.
<<
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.
-30-
/For further information: refer to the Company's website at
www.rareelementresources.com or contact: Donald E Ranta, President & CEO,
(604) 687-3520, don@rareelementresources.com; Mark T. Brown, CFO, (604)
687-3520 ext 242, mtbrown@pacificopportunity.com/
