TSX-V: RES
VANCOUVER, April 17 /CNW/ - Rare Element Resources Ltd (TSX-V: RES) announces that the Sundance gold-exploration project, which is a joint venture between Paso Rico (USA) Inc., a subsidiary of Rare Element Resources (Company), and Newmont North America Exploration Limited, a subsidiary of Newmont Mining Corporation (Newmont), will begin 2007 drilling on the Company's Wyoming property in June. Newmont manages the gold exploration for the Sundance project. Exploration work for 2007 is designed to build on the successful 2006 trenching and drilling program. It will include, in addition to drilling, detailed environmental, geological, geochemical and geophysical studies. The gold-exploration joint-venture agreement calls for Newmont expenditures to total US$1.2 million prior to June, 2008. Newmont has met the initial requirement by expending at least US$ 500,000 by 31 May 2007.
"The Sundance project partners are very pleased with the promising results of the 2006 exploration," reports Company President Bill Bird. "These results clearly warrant the upcoming 2007 work program, as well as the planning for the following year, which includes an environmental assessment to support a potentially larger drill program.
"Sundance employs the alkaline-intrusive complex gold-exploration model, as exemplified by the plus 23-million-ounce Cripple Creek, Colorado gold deposit. Exploration results generated by Sundance continue to highlight the similarities between Cripple Creek and the Rare Element Resources property. The Sundance geology, grades and aerial extent of the mineralization, along with various engineering conditions, continue to fit the model and are comparable to those of the ore presently being mined at the profitable, large open-pit Cripple Creek & Victor (CC&V) gold mine in Colorado. For example, 2006 trenching and drilling at Sundance returned significant gold values over long intervals, such as 70.1 metres grading 1.00 gram of gold per tonne and 62.5 metres grading 0.66 gram of gold per tonne (refer below to table 1, for additional Sundance results, and table 2, for CC&V mine statistics. For more detailed Sundance results, refer to Company news releases of 14 December 2006 and 18 January 2007). The Sundance partners look forward to the 2007 and 2008 exploration programs to confirm the 2006 results."
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. The Company and Newmont have entered into the Sundance gold-exploration joint venture 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 the largest disseminated rare-earth occurrence in North America (M H Staatz, US Geological Survey Professional Paper 1049D). In parallel with the gold-focused exploration by the Sundance project partners, Rare Element Resources plans to independently advance the rare earth potential of its property through drilling and metallurgical testing planned for 2007 (see Company news release of 15 February 2007).
ON BEHALF OF THE BOARD
William H Bird, PhD, PGeo, 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.
Table 1. Significant Sundance 2006 trench and drill-hole assays for Carbon SE and Taylor targets indicate confirmation of broad, gold mineralization zones. g/t(equal sign)grams per tonne, m(equal sign)metres
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Target Drill Hole Thick/m Gold g/t Trench Width/m Gold g/t
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Carbon SE SUN 002 13.7 1.01 3 70.1 1.00
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" SUN 001 9.1 1.17 3 18.3 2.25
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" SUN 001 6.1 1.01 4N 57.9 0.62
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Taylor SUN 008 19.8 1.04 10N 24.4 1.28
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Carbon SE SUN 011 4.6 1.57 10E 6.1 1.39
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Taylor SUN 009 62.5 0.66 9E 73.2 0.56
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Table 2. Cripple Creek & Victor gold mine, 2005
Calculated using data provided on the CC&V Gold Mining Company web site
(www.ccvgoldmining.com)
Total ounces of gold produced (1995-2005) 2.5 million
Tons ore developed and permitted for production (2005) 300 million
Ounces of gold permitted for production
@ 0.016 oz/ton (2005) 4.8 million
Tons of ore produced (2005) 20,070,829
Ounces of gold produced (2005) 329,625
Gold grade in ounces per ton for ore produced (2005) 0.016
Gold grade in grams per tonne for ore produced (2005) 0.54
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Ounces of gold produced from Cripple Creek district since
discovery in late 1800's +23 million
%SEDAR: 00019662E
