1,000 Tons of Trench Material Excavated for Use in Planned
Large-Scale Demonstration Plant
Company Website:
http://www.rareelementresources.com
LAKEWOOD, Colo. -- (Business Wire)
Rare Element Resources Ltd. (the “Company”) (NYSE MKT: REE and TSX:
RES), a mineral resource company advancing development of the Bear
Lodge Critical Rare Earth Project (the “Project”) located in northeast
Wyoming, announced today that it has completed a trenching program that
confirmed geology, structure and grade of the near-surface, high-grade
zone at the Bull Hill deposit. Additional studies are underway to
confirm detailed mineralogy. The trenched area is the anticipated site
of initial mining as contemplated in the recently released Preliminary
Feasibility Study (PFS). Bulk samples excavated during the trenching
returned average assays of 10.1% total rare earth oxide (TREO) over a
length of approximately 225 feet (69 meters). Approximately 1,000 tons
(907 tonnes) of mineralized material were excavated from the trench to
feed a planned demonstration-scale plant using the process flowsheet
that incorporates the Company’s proprietary recovery technology,
including the recently announced process for the production of partially
separated rare earth products.
“The results of the trenching and bulk sample program were positive on
multiple levels,” said Jaye T. Pickarts, Chief Operating Officer. “We
were able to confirm the continuity, orientation and grade of the
high-grade zone in that portion of the ore body we intend to mine first.
This work allowed us to collect valuable data that will be incorporated
into detailed engineering. Most importantly, we excavated a large
mineralized sample that we plan to use in a demonstration plant to
confirm on a larger scale our process flow sheet, including the recently
announced separation technology. It will allow us to thoroughly evaluate
and confirm the entire process, from run-of-mine to the creation of a
significant quantity of final, separated products on a continuous-run
basis. This work will generate important information that will
contribute to both the Feasibility Study and detailed engineering,
including testing materials of construction, confirming equipment
selection, and verifying material handling parameters. Having this
information prior to construction should de-risk the project
significantly and greatly reduce or eliminate the numerous start-up
issues experienced by other companies in the rare earth sector.”
The trench exposed the Bull Hill main dike for a total distance of
approximately 300 feet (91.4 meters) along a northwesterly strike with
widths that varied from 8 to 20 feet (2.5 to 6.1 meters). Nine 120-ton
bulk samples were collected on 25-foot spacing (7.6 meters), with 2-ton
(0.9 tonnes) representative sub-samples collected from each block for
preliminary metallurgical testing. Nine 30-pound (13.6 kg)
representative assay samples were collected from each sub-sample to
provide an estimate of grade and continuity. These assays range from
3.65% to 14.65% TREO and average 10.1% TREO. Four cross trenches were
excavated and sampled (six 12-ton bulk samples, each with a 0.5 ton
sub-sample and an assay sample) to provide material to test the
processing character of mid- to low-grade stockwork material and help
ascertain the trend and character of the dike and adjacent stockwork
zones.
The excavation confirmed that the main, highly oxidized carbonatite dike
at the Bull Hill deposit is flanked by parallel dikes, splays and
stockwork mineralization collectively forming a mineralized zone that
extends at least 300 feet (91.4 meters) along strike and attains widths
of up to 40 feet (12.2 meters). In the subsurface, this zone expands to
more than 300 feet (91.4 meters) in width, based on detailed drilling
and assay data. Geological information collected from the trench proves
dike orientation and continuity, mineralogy and grade along its
northwest strike. Structural mapping data collected validates trends
utilized in resource modeling and will be incorporated in pit wall
stability design.
The 1,000-ton bulk sample collected from the trench is currently being
stockpiled on Company-owned property at the Bear Lodge Project. The area
of excavation has been reclaimed in accordance with U.S. Forest Service
and Wyoming Department of Environmental Quality standards.
Planned Demonstration Plant
Pending financing and the successful completion of additional
bench-scale testing of the Company’s recently announced separation
technology, the Company plans to construct in 2015 and then operate a
larger-scale (1 - 3 tons per day), continuous-run demonstration plant to
confirm its process flow sheet from physical upgrade to separated rare
earth oxide products. It anticipates generating approximately 70 tons
(63 tonnes) of rare earth products from processing the trench material,
based on expected recovery rates. The demonstration plant will
contribute important operating data for consideration in the planned
Feasibility Study and inclusion in detailed engineering, with the goal
of avoiding some of the startup issues that have plagued others in the
rare earth sector. Additionally, the resultant products will be provided
to a wider range of potential offtake partners for evaluation and
testing for specific applications.
Rare Element Resources Ltd. is a publicly traded mineral resource
company focused on exploration and development of rare-earth element
deposits, specifically those with significant distribution of critical
rare earths. The Company is advancing development of the Bear Lodge
Project, located in northeast Wyoming. Bear Lodge is a significant
mineralized district containing many of the less common, more valuable
critical rare earths that are essential for electronics, fiber optics,
laser systems for health and defense, as well as many evolving green
technologies, like hybrid cars, solar panels and wind turbines.
Permitting and feasibility work on the Project continue to advance. The
Company is a member of the U.S. Department of Energy’s Critical
Materials Institute, a combined government and private sector
organization committed to eliminating supply chain issues for rare
earths and other critical elements. Please see CMI’s website at https://cmi.ameslab.gov/
for additional details on its mission and members.
For additional information, please visit the Company’s website at www.rareelementresources.com
or contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.
John T. Ray, MS, Rare Element’s internal, qualified person under
Canadian NI 43-101, supervised the preparation of the scientific and
technical information concerning the Company’s mineral project contained
in this new release.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
usually identified by our use of certain terminology, including "will",
"believes", "may", "expects", "should", "seeks", "anticipates", "plans",
"has potential to", or "intends" (including negative or grammatical
variations thereof) or by discussions of strategy or intentions. Such
forward-looking statements include statements regarding: the plan to
construct, operate, timing and ability to finance a demonstration-scale
plant and the expected results and benefits thereof, the estimated
impacts to the final Project from the demonstration-scale plant; the
trenching program results and impact on the ultimate resource estimate;
the timing and expected results of a definitive Feasibility Study
including the potential for upside as a results of the incorporation of
Project opportunities into the definitive Feasibility Study; processing
test work and expected results; permitting process and progress; the
expected commissioning of the Project and Project development plans for
the future. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause our actual
results or achievements to be materially different from any future
results or achievements expressed or implied by such forward-looking
statements.
Factors that could cause actual results to differ materially include,
but are not limited to, the progress of our Bear Lodge Project;
estimated Project economics and parameters from the PFS, fluctuations in
demand for, and price of, rare earth products; success of process
technology under testing or development; results from geological
evaluations and programs; timing of and unexpected events at the Bear
Lodge property; delay or failure to receive government approvals and
permits; our ability to obtain financing for the Project on acceptable
terms or at all; changes in U.S. and Canadian securities markets; and
general economic conditions. There can be no assurance that future
developments affecting the Company will be those anticipated by
management. Please refer to the discussion of these and other factors in
our Annual Report on Form 10-K for the year ended December 31, 2013. We
expect that the above estimates as to development plans, technology and
other processes, time frames and financial needs will change as new
information is received and that actual results will vary from these
estimates, possibly by material amounts. While we may elect to update
these estimates at any time, we do not undertake to update any estimate
at any particular time or in response to any particular event. Investors
and others should not assume that any forecasts in this news release
represent management's estimate as of any date other than the date of
this news release.
Contacts:
Rare Element Resources Ltd.
Robbin Lee, 720-278-2462
rlee@rareelementresources.com
Source: Rare Element Resources Ltd.
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