VANCOUVER, Oct. 15 /CNW/ - Rare Element Resources Ltd (TSX-V: RES) announces that the 2007 rare-earth exploration program is continuing. In June, the Company completed the first drill hole (RES 07-1), which targeted the main zone of rare-earth mineralization at Bear Lodge, Wyoming. The drill core from RES 07-1 was quartered and with one half sent for testing programs at a metallurgical research facility in Tucson, Arizona. Sections of all mineralized core were sent for assay and a split of the entire core was retained for reference.
The Company is currently completing the rare-earth drill program with two additional holes (RES 07-2 & 07-3). Drill-holes RES 07-1 and 07-2 are designed to expand knowledge of the southwest Bull Hill dike swarm and to gather metallurgical test samples. Drill-hole RES 07-03 targets a high-grade rare-earth carbonatite on the northwestern margin of Bull Hill. This carbonatite was previously intersected by the Hecla Mining Company drill-hole WP-2, which intersected 186 feet (40.3 feet true thickness) of 9.56% total rare-earth oxides in oxidized carbonatite and 80 feet (45.9 feet true thickness) of 5.65% total rare-earth oxide in non-oxidized carbonatite.
Rare Element has also arranged a non-brokered private placement of 1 million units for gross proceeds of $1 million. Each unit is comprised of one common share and one non-transferable warrant. Each two warrants entitle the holder to purchase one additional common share for a period of 18 months at a price of $1.35 per common share.
The financing proceeds will be used for general corporate purposes and for the advancement of both the gold and rare earth element projects in Wyoming.
In addition, the Company has granted 25,000 options exercisable at $1.00 per share to a consultant.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral-resource company focused on gold and 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 Sundance gold-focused exploration project, Rare Element Resources is independently advancing the rare-earth potential of its property with a 2007 drilling and metallurgical testing program (see Company news release of 15 February 2007).
ON BEHALF OF THE BOARD
Donald E. Ranta, President & CEO
James Clarke, PhD, PGeo, serves 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. Clark. This news release was prepared by Company management, who take full responsibility for its content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.