August 18, 2008
Rare Element Engages Ore Reserves Engineering for NI 43-101 Resource Estimation and Technical Report of Rare-Earth Mineralization
VANCOUVER, Aug. 18 /PRNewswire-FirstCall/ -- Rare Element Resources Ltd. (TSX V: RES) (the "Company") is pleased to announce the Company has engaged Ore Reserves Engineering (O.R.E.) to further its project development activities on the Bear Lodge rare-earths property located in northeastern Wyoming. The Company continues to advance the commercial understanding of Bear Lodge rare earths by defining and expanding the resource and determining the recoverability of the REE within that resource by conducting metallurgical testing. Principal plans for the remainder of the year are to drill for rare-earth mineralization and to work toward rare-earth resource estimation.
Drill-hole Database Compilation and Resource EstimationFollowing Datamine North America's compilation of the Bear Lodge drill-hole database, O.R.E. has begun analyzing the data to determine the optimal placement of new drill holes to accomplish a resource estimate. Additional work will include modeling of the rare-earth mineralization to understand its size, shape, and internal continuity, followed by resource estimation. Alan C. Noble, P.E., is the Principal Engineer of O.R.E. and is a Qualified Person for the purpose of Canadian NI 43-101, Standards of Disclosure for Mineral Projects, and he will be the principal author of the planned Technical Report.
A historical resource on the Bear Lodge property, defined and estimated by Hecla Mining Company in 1990, was 3.9 million tonnes averaging 3.8% REO* (not compliant with requirements of NI 43-101). The new resource estimate will evaluate and update this historical resource to the current standards and will incorporate the drilling done during the past several years by Rare Element Resources. The Technical Report combined with the ongoing metallurgical test work will provide the Company with a good understanding of the deposit and an idea of the potential products that the Company will look to bring to market.
* Because this resource estimate was prepared before the introduction of NI 43-101, it should be treated as a historical estimate only. Investors are cautioned that recent independent verification has not been completed and Rare Element Resources has not completed sufficient work to independently verify the historical resource estimate. The Company is not treating the historical estimate as NI 43-101 defined resources and reserves verified by a qualified person, and the historical estimate should not be relied upon.
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 eight holes to independently advance the rare-earth potential of its property and is currently planning another drill program.
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. The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of this release.
Rare Element Resources Ltd.
CONTACT: refer to the Company's website at http://www.rareelementresources.com/or contact: Donald E Ranta, President & CEO, (604) 687-3520,[email protected]; Mark T. Brown, CFO, (604) 687-3520 ext [email protected]