Welcome To The Wealth Minerals HUB On AGORACOM
Edit this title from the Fast Facts Section
Message: Fantastic news
May 27, 2010
Wealth Signs Option to Acquire Argentina’s Largest Rare Earth Element Deposit ‘Rodeo de los Molles’,
San Luis Province, Argentina
Historical geologic resource of 5.6 Mt at 2.1 % Total Rare Earth Oxides and 0.02% U3O8 – mineralization remains open
Assays return maximum value of 35.5 % Total Rare Earth Oxides with a 55.5% Heavy Rare Earth Oxide component
FOR IMMEDIATE RELEASE......Vancouver, British Columbia: Wealth Minerals Ltd. (the “Company” or “Wealth”) - (TSXV: WML, Frankfurt: EJZ), is pleased to announce that it has entered into an option agreement with Michelotti e Hijos, S.R.L., a private arm’s length Argentinean company (“MHSRL”), whereby Wealth can acquire a 100% interest in the “Rodeo de Los Molles” (“RdlM”) rare earth element (“REE”) - uranium deposit, located in San Luis Province, Argentina.
The RdlM REE-U deposit has an historical geologic resource of 5.6 Mt at 2.1% Total Rare Element Oxide (TREO) and 0.02% U3O8. This historical resource was prepared in 1992 by MHSRL staff and is based on more than 6,000 metres of shallow RAB drilling carried out by MHSRL in the early 1990’s, as well as metallurgical testwork. This historical resource estimate is considered relevant by the Company, both for the purposes of the Company’s decision to acquire the property and to guide the Company in formulating an exploration program for the property. However, the Company cautions that the resource estimate was prepared before the introduction of NI 43-101, and is therefore historical in nature and the Company is not treating such resources as a current resource under NI 43-101. Investors are further cautioned that a qualified person has not yet completed sufficient work to be able to verify the historical resources, and therefore they should not be relied upon.
Due diligence sampling by the Company has confirmed the tenor of REE mineralization. Three representative rock-chip samples collected from the outcropping mineralization returned assays ranging from 7.4 to 35.5% TREO (with a heavy rare earth oxide (HREO) component ranging from 5.0 to 55.5%) and 0.15% to 0.92% U3O8. A fourth sample, collected from an apparently unmineralized outcrop, returned a value of 0.11% TREO and 12.1 ppm U, thereby highlighting the potential for the expansion of the known deposit. The outcropping mineralization remains open to depth and in all directions.
Rodeo de Los Molles Property
The RdlM property consists of 6 minas, totalling 72 hectares, and is located approximately 300 kilometres southwest of the City of Cordoba and 200 kilometres northeast of the city of San Luis. The property is ideally located in terms of access and infrastructure (there are 13.2 and 33 kW power lines within 8 kilometres of the property) and the climate allows work year round. The Company is presently designing an aggressive exploration program to verify and potentially expand upon the historical resource.
The deposit is hosted in strongly altered (fenitized) alkalic igneous rocks of the Las Chacras Coloradas igneous complex. REE mineralization (bastnasite) at RdlM is similar to REE mineralization at the Mountain Pass REE deposit in California, which contains total proven reserves of 88.0 million pounds of REO, with an average ore grade of 9.38%, and probable reserves of 2.12 billion pounds of REO, with an average ore grade of 8.20%, in each case using a cut-off grade of 5.0% (source - Molycorp, Inc.). The Mountain Pass mine operated from 1952 to 2002 and produced most of the world’s REE’s from 1965 to 1985.
Terms of Agreement
Under the terms of an option agreement dated May 21, 2010, Wealth can acquire a 100% interest in the RdlM property, with no underlying royalties, by spending USD 150,000 on exploration within 12 months and making the following payments to MHSRL:
· $75,000 USD upon signing
· $100,000 USD on the sixth month anniversary
· $175,000 USD on the first anniversary
· $250,000 USD on the second anniversary
· $1,000,000 USD on the third anniversary
· $2,000,000 USD on the fifth anniversary
Rare Earth Elements
The rare earth element (REE) group is considered to include the 15 lanthanide elements: lanthanum (La), cerium (Ce), praseodymium (Pm), promethium (Pr) (does not occur naturally), neodymium (Nd), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), and lutetium (Lu). The element yttrium (Y) is also included as it has similar chemical properties. Total rare earth oxides (TREO) refers to the 15 rare earth elements lanthanum to lutetium plus yttrium expressed as oxides. Heavy rare earth oxides (HREO) refers to the total of yttrium plus europium to lutetium, as oxides, as a percentage of TREO.
REE deposits tend to occur in two sub-groups:
1) Light rare earth element (LREE) enriched deposits which include La, Ce, Pr, Nd and Sm.
2) Heavy rare earth element (HREE) enriched deposits which include Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu, and Y.
Sometimes called the “clean energy”, “tech” or “green” metals, the unique physical, chemical and light-emitting properties of the rare earths make them indispensable in modern technologies such magnets, hybrid cars, wind turbines, computers and cell phones. The price of rare earth products has increased significantly over the past three years due to increased demand and tightening supplies, particularly so for the less abundant heavy rare earths.
Qualified Person & QA/QC Controls
R. Scott Heffernan, M.Sc., P.Geol., Wealth’s Vice-President Exploration, and a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Heffernan is not independent of Wealth by virtue of being an officer and a holder of incentive stock options.
Wealth’s activities to date at RdlM have been supervised by R. Scott Heffernan, P.Geol., Wealth’s Vice-President, Exploration, who is responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collected and tracked the due diligence samples, which were then sealed and shipped to the Acme Laboratories S.A. laboratory facilities in Mendoza, Argentina for preparation and then forwarded to Acme Analytical Laboratories Ltd. of Vancouver, British Columbia, for geochemical analysis by ‘Group 1T’ - 4 Acid Digestion Ultratrace Inductively Coupled Plasma Mass Spectrometry (ICP-MS). Acme Laboratories S.A.’s quality system complies with the requirements for the International Standard ISO 9001:2000 and Acme Analytical Laboratories Ltd.’s quality system complies with the requirements for the International Standard ISO 9001:2008. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards.
Laboratory results are received in parts per million uranium. The conversion factor used to convert parts per million uranium to pounds per short ton U3O8 is 1.179, which was verified with the Saskatchewan Research Council (ppm uranium x 1.179 = ppm U308; 10,000 ppm uranium = 1% = 20 lbs/ton uranium).
About Wealth Minerals Ltd.
Wealth is an early stage mineral exploration company with approximately 37.7 million shares issued and listings on the TSX Venture and Frankfurt Stock Exchanges. The Company’s focus is the acquisition and exploration of prospective uranium and rare earth element properties, primarily in Argentina and Peru. In addition to ongoing work programs on its existing properties, it continues to actively evaluate new potential uranium and rare earth projects in these and other countries.
For further details on the Company readers are referred to the Company’s web site (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
“Henk Van Alphen”
Hendrik Van Alphen
President & CEO
Please login to post a reply