Rare Element maintains 100% Interest in gold at Bear Lodge
- John Ray retained to lead gold exploration program. - Property position increased by more than 100%. - Newmont's pre-emptive right eliminated. TSX-V: RES
“We are excited about this opportunity for Rare Element because of the potential to define gold deposits with a gold-focused drilling program this year in addition to our planned rare-earth-focused drilling program. We expect to be able to generate the first NI 43-101-compliant gold resource estimate early in 2011 for the
Terms of the Agreement
The gold exploration project will continue to be called the “Sundance” project and the rare-earths project will continue to be called the “Bear Lodge” project. Both projects are included within separate areas of the same property position in the Bear Lodge Mountains. In consideration for transferring its claims and terminating the venture agreement, Newmont was granted a right-of-first-refusal on all claims, excluding rare-earth elements, and a 0.5% NSR royalty, for precious and base metals only, on the new claims being transferred to Rare Element from outside of the Venture.
The original venture agreement, signed in
The Sundance Venture exploration program, lead by Newmont, also had a right to operate both the gold and REE exploration programs if they ever conflicted and this right is now terminated.
Gold Exploration Summary and Plans
The Bear Lodge property with the additional claims now consists of 489 claims and a leased Wyoming State section for a total of approximately 16 square miles. As a result of the agreement with Newmont, the Company retains a totally unencumbered rare-earth project and now has 100% interest in all gold and other minerals in the Bear Lodge district. The core group of claims (venture area) is free of royalties. Rare Element sees an immediate opportunity to define a potentially economic gold resource by offset drilling of holes where Newmont encountered significant gold mineralization. The exploration goal for near-surface gold targets at the Taylor, Smith, and
During the past four years, Newmont contributed significantly to the advancement of the
Rare Element has retained the services of geologist
Rare Element Resources Ltd (TSX-V: RES) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property. Gold exploration in the Bear Lodge Mountains has been conducted for several decades with a number of companies significantly contributing to the database and understanding. Newmont’s recent exploration efforts were the most comprehensive and extensive of these programs.
Rare Element’s Bear Lodge property encompasses one of the largest disseminated rare-earth occurrences in
ON BEHALF OF THE BOARD Donald E Ranta, PhD, PGeo, President & CEO
SOURCE Rare Element Resources Ltd.