Independent Assessment Reports Mineralization of 2.173 Million Tons at U.S. Rare Earths’ Idaho/Montana Properties
NEW YORK, Oct. 3, 2012 /PRNewswire/ — U.S. Rare Earths, Inc., “USRE,” (OTC BB: UREE), www.USRareEarths.com, announced today the final results of an independent analysis of historic exploration work done on its Idaho and Montana properties.
The third-party resource assessment, undertaken by Process Engineering, SP under the direction of geological and metallurgical engineer Howard Dunn, analyzed historic work on the Company’s properties, applying international standards and guidelines.
In July, based on a cut-off grade of 0.10%, the Company cited the preliminary independent report (“Dunn Report”) as indicating the presence of 645 MT (Thousand Short tons) of mineralization at 0.95% REO (Rare Earth Oxides; weighted average “WA”), with an additional 1,500 MT of mineralization at 0.68% WA REO in the Company’s Idaho and Montana claims, located in the Lemhi Pass region.
The final report adds assessments of the Company’s Sheep Creek, Diamond Creek, and North Fork claims, ranging from 1 to 10.5%. Total tonnage outside the Lemhi Pass area is estimated at 19.56 MT, bringing the overall tonnage to 2,173 MT.
The Company’s Colorado claims were not assessed in this report.
As the Dunn Report notes:
“The Fair Market Value is only for “Rare Earth” mineralization and yttrium (yttrium is typically included in rare earths mineral deposits) herein also as “Metal Oxide”, exclusive of all other minerals and metals including the exclusion of precious metals, platinum group metals, base metals, and specifically thorium, uranium, niobium, and tantalum.”
The review of historic data draws on drilling and field work done over a 40-year period, by entities including Idaho Energy Resources Company, Idaho Power, Tenneco, and the U.S. Geological Survey. The review also included recent (2007-2011) contracted field work sampling and analysis by USRE, which in general supported the historical findings. Analysis was done by Activation Laboratories (ACTLabs), Inc. of Ontario, Canada.
While this historic work does not meet current SEC guidelines for establishing resources and reserves, it provides a valuable insight into the potential value of the Company’s claims. “Looking at the mineralization we see in the historic data, which covers work done by well-capitalized resource companies as well as U.S. Government agencies,” said CEO Michael D. Parnell, “we’re confident further work can progress our properties to the resource stage.”
Process Engineering’s principal Howard Dunn holds degrees in Geological and Metallurgical Engineering from the Colorado School of Mines. As a registered chemical engineer in the states of Idaho and Colorado with two decades experience in resource analysis, his prior projects include Department of Defense, NASA and Department of Energy engagements.
U.S. Rare Earths’ properties in Idaho and Montana, including Lemhi Pass, have been recognized in the U.S. Department of Energy’s Critical Materials Strategy publications to have significant showings of Heavy Rare Earth Elements, in particular for the five Rare Earths identified by DOE as being at “Critical Risk”: Dysprosium, Europium, Neodymium, Terbium and Yttrium.
Drill permits for some of the properties covered in the Dunn Report are currently pending.
In July 2012, USRE announced the engagement of Ruen Drilling Inc. (“Ruen”) to lead the Company’s 2012 Drill Program. Ruen has 30 years of drilling experience spanning across three continents.
About U.S. Rare Earths, Inc.:
U.S. Rare Earths, Inc. (“USRE”, “U.S. Rare Earths” or the “Company”) is a mineral exploration, mining and claims acquisition company based in Lonoke, AR. Formerly Colorado Rare Earths, Inc., the Company holds over 12,000 acres of mining claims for rare-earth elements in Colorado, Idaho and Montana. In Colorado, these claims include the Powderhorn Property in Gunnison County, and Wet Mountain Property in Fremont and Custer Counties. Additional claims include the Lemhi Pass Property in Lemhi County, Idaho and Beaverhead County, Montana; Diamond Creek and North Fork Properties in Lemhi County, Idaho and the Sheep Creek Property in Ravalli County, Montana.
Rare earth elements are critical to many existing and emerging 21st century applications including clean-energy technologies such as hybrid cars and electric vehicles; high-technology applications including cell phones and digital music players; hard disk drives used in computers; microphones; fiber optics; lasers; and in addition, critical defense applications such as global positioning systems, radar and sonar; and advanced water treatment applications, including those for industrial, military, homeland security, domestic and foreign aid use. For more information visit www.usrareearths.com.
Statements in this press release including statements regarding US Rare Earth’s beliefs, expectations, intentions or strategies for the future, may be “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause US Rare Earth’s actual results to differ from management’s current expectations, are contained in US Rare Earth’s filings with the Securities and Exchange Commission and available through http://www.sec.gov.
SOURCE U.S. Rare Earths, Inc.