TSX-V: RES
VANCOUVER, Dec. 14 /CNW/ - Rare Element Resources Ltd (TSX-V: RES) announces that the Newmont - Rare Element Resources gold-exploration venture has identified significant anomalous gold values in trenches on the Company's Bear Lodge property in northeast Wyoming. During the 2006 field program, 358 samples were collected and assayed from six trenches constructed in the Carbon SE and the Taylor target areas (945 metres of trenching). These targets are approximately one kilometre apart and each is approximately two kilometres west of the East and West Breccia target area. Geochemically anomalous gold values occurred in virtually all samples with 259 samples assaying in excess of 100 parts per billion gold (0.1 gram of gold per tonne). The following trench intervals returned consistent, highly anomalous gold values:
Area Trench No. Length (m) Gold Grade (g/t)
---- ---------- ---------- ----------------
Carbon SE(x) 4N 51.8 0.59
3 70.1 1.00
Including 18.3 2.25
4E 57.9 0.62
Taylor(xx) 10N 24.4 1.28
And 30.5 0.56
And 24.4 0.51
10E 36.6 0.60
Including 6.1 1.39
9E 73.2 0.56
(x) In the Carbon SE target area, samples are of bedrock and fall within
a 100-metre by 100-metre area, which remains open to further exploration
and expansion.
(xx)In the Taylor target area, samples from 10N and 10E are of bedrock.
Samples from 9E are of colluvium. Samples fall within a 150-metre by
150-metre area, which remains open to further exploration and expansion.
President Bill Bird comments, "These highly anomalous surface gold values, which are now known to occur in three widely spaced areas, are yet another indication of the gold potential of the Bear Lodge property. The results illustrate the significance of the Taylor and Carbon SE gold targets and rank them in importance with the East and West Breccia target, where previous drilling by FMC and Hecla Mining Company located a historical resource estimated to be 8.2 million short tons grading 0.023 ounces of gold per ton (0.8 gram of gold per tonne)(xxx). The trench sampling and initial drilling (drilling results are pending) are the result of the first stage of the Newmont gold-venture exploration and are encouraging for this stage.
(xxx)These data, including the historical resource estimate and the
tabulated trench-sample assay results, are not compliant with resources-
estimate standards required by National Instrument 43-101- Standards of
Disclosure for Mineral Projects ("NI 43-101"). They may not be relied
upon until they are confirmed using methods and standards that comply
with those required by NI 43-101. Investors are cautioned that a
qualified person has not completed sufficient work to classify the
results as a current mineral resource. Neither the Company nor its
personnel treat these data as a current mineral resource as defined under
NI 43-101, nor do they rely upon them for evaluation purposes; however,
these data are used to guide exploration as the exploration venture
develops data to support a current mineral-resource estimate in
accordance with the requirements of NI 43-101.
The gold-exploration venture at the Company's Bear Lodge property is managed by Newmont and the trench sampling and drilling were carried out by Newmont personnel. The trench samples are described as "chip-channel samples" and the sample length is ten feet. Assays were performed by ALS-Chemex. The ALS-Chemex quality system complies with the requirements of the international standards ISO 9001:2000 and ISO 9001:2005. Gold content is determined by fire assay and AAS of a nominal 30-gram weight of sample (code Au-AA23).
Drilling update: In addition to the trench sampling, nine reverse-circulation drill holes (1677 metres of RC drilling) and two core drill holes (532 metres of core drilling) were completed during the 2006 program. Results of the drilling will be released as soon as all drilling samples have been assayed and the results integrated into the project data base.
Annual General Meeting report: On 23 November 2006, the shareholders of the Company met for the Annual General Meeting and approved the appointment of Norman W. Burmeister, Mark T. Brown, Norman Anderson, William H. Bird, David C. Beling and Stephen P. Quin as the directors of the Company for the ensuing year. Also approved were the Company's stock option plan and the appointment of DeVisser Gray, Chartered Accountants as the auditors.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral-resource company focused on gold and strategic metals, such as the rare-earth elements (REE's). Previous gold exploration on the Company's Bear Lodge, Wyoming property has identified gold occurrences in intrusive breccia bodies and numerous gold geochemical anomalies. The surface geology exposes the upper levels of a mineralized alkaline-igneous intrusive complex, which is geologically similar to the intrusive complex that hosts the Cripple Creek, Colorado, gold deposits.
Paso Rico (USA) Inc, a wholly owned subsidiary of Rare Element Resources, and Newmont North America Exploration Limited, a subsidiary of Newmont Mining Corporation (Newmont), entered into a gold-exploration venture, effective 01 June 2006, on the Company's Bear Lodge property. Newmont is the manager of the gold-exploration program. Newmont has the right to earn a 65% working interest in Rare Element Resources' Bear Lodge 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.
The Bear Lodge property also has rare-earth-element (REE) exploration potential. The author of US Geological Survey Professional Paper 1049D stated that, what is now Rare Element Resources' Bear Lodge REE property is the largest disseminated REE occurrence in North America. REE's, which have been called "catalysts for high-tech living," are required for many new technologies, including nickel-metal-hydride batteries and the motors, generators and batteries used in hybrid cars. The US market for REE's exceeds US$1 billion, with most supplied by China.
ON BEHALF OF THE BOARD
William H Bird, PhD,
President & CEO
William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Dr Bird. 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.
