Rare Earth Metals Inc Completes Two Additional Option Agreements And Outlines Exploration Plans On I
TSX-V symbol: RA
Thunder Bay, ON – Rare Earth Metals Inc (“Rare Earth Metals” or the “Company”) (TSX VENTURE:RA) is pleased to announce it has completed two option agreements for additional mining claims in the Red Wine area of west-central Labrador. The Company now controls a total of 816 claim units totaling 204 square kilometers in the emerging Red Wine Rare Metal Belt. The new agreements are subject to acceptance by the TSX Venture Exchange. There can be no assurance that the Acquisition will be completed as proposed or at all. A summary of the agreements follow:
Ten Mile Lake Option (61 claim units) – Rare Earth Metals can earn a 51% interest for payments of $33,000 and the issuance of 90,000 shares over two years (including $5,000 and 10,000 shares on signing). The property would then be operated as a joint venture. If either party opts to reduce to a 10% interest, its interest would revert to a 2% NSR. Half the NSR (1%) can be purchased by the remaining party for $1,000,000.
Hick’s Option (4 claim units) – Rare Earth Metals can earn a 100% interest for payments of $19,000 and the issuance of 30,000 shares over two years (including $1,500 and 5,000 shares on signing). Once vested, the vendors will be entitled to a 2% NSR. Half the NSR (1%) can be purchased by the Company for $750,000.
The Company’s exploration plans for the Red Wine Belt include a program of airborne geophysics, prospecting, geological mapping, geochemical sampling and channel sampling throughout the claim group and diamond drilling on the Mann #1 Deposit and the North Red Wine #2 Showing. The property is located 165 kilometers WNW from Goose Bay, Labrador, however, a hydro dam access road is located 40 kilometers from the property and this will be used as a staging point for the field work. Presently an airborne magnetic and radiometric survey is being contracted with a scheduled start of June 1, 2010, or earlier, if weather conditions allow.
The Red Wine Property claims are underlain by the Red Wine Alkaline Igneous Complex which is analogous with the alkaline intrusive setting which hosts the Strange Lake rare earth mineralization, 260 km to the northwest. The Red Wine Complex consists of a variety of rift-related peralkaline intrusive and volcanic units which are host to a number of rare metal showings, all of which have appreciable Rare Earth Elements. The Company has acquired in excess of 800 claim units through staking, option agreements and joint ventures, and now controls the mineral rights to most of the known showings identified in the belt. These showings were discovered over 60 years ago and were last worked in the 1960s. No systematic work has been carried out for rare metals in the belt since that time.
The 2010 exploration program will focus on both detail work on the known showings and a regional evaluation of the belt using the new airborne survey to direct the prospecting. Results from this work will be released as they become available over the summer. A brief description of the known mineralization on the Rare Earth Metal property follows:
Mann #1 – Rio Tinto outlined a Beryllium resource in 1961, however, the mineralization was never systematically assayed for REEs. Rare Earth Metals took 16 grab samples from a number of blast trenches and obtained Beryllium values up to 0.97% BeO, Niobium values up to 2.35% Nb2O5, and TREO values up to 4.99%.
Mann #2 – a 2400 meter by 90 meter radiometric anomaly along strike with the Mann #1; no recent samples taken.
Michelin Showing – government grab sample values grading up to 0.79% Ce, 0.096% Y, 0.24% Nb, 0.16% Zr, and 0.14 % Be within a 1000 meter by 75 meter radioactive mineralized zone.
Two Tom Lake – Rare Earth Metals took grab sample values grading 0.93% Be0, up to 4.19% Nb2O5 and up to 3.24% TREO; this showing occurs within a highly prospective 2000 meter diameter circular peralkaline syenite pluton.
North Red Wine #2 – Mineralization consists of up to 40% Eudialyte, a Zirconium-Na-Ca-Silicate mineral with appreciable REEs and Y. The Company took seven grab samples from different parts of the zone resulting in ZrO2 up to 4.93% and Total Rare Earth Oxides (TREO) up to 1.04% The Rare Earths were made up of 47% Light REOs and 53% Heavy REOs.
A breakdown of the assays and ranges for Mann #1 and Two Tom Lake were previously reported in an East Energy (the precursor company to Rare Earth Metals) press release on November 6, 2009.
A map of the Company’s Red Wine property and a visual representation of the location of the showings in this release are available on the Company’s website at www.rareearthmetals.ca.
Wayne Reid, PGeo, is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical information forming the basis for release.
About Rare Earth Metals Inc.
Rare Earth Metals is a well-funded company with a focus on exploring for Rare Earth Element deposits. The Company’s shares are listed on the TSX-V exchange under the symbol RA and the OTCQX exchange under the symbol RAREF. The Company presently has two advanced projects in Ontario and Newfoundland and Labrador, both exhibiting multi element potential (REEs, Niobium, Beryllium, Zirconium and Iron Ore) and proximity to available infrastructure. Its flagship properties are the Clay-Howells Prospect and the Red Wine Project. The Company has recently acquired additional properties in the Coldwell Complex near Marathon, Ontario and the Lavergne-Springer REE Prospect near Sturgeon Falls, Ontario. Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under the Company’s profile at www.sedar.com. For more information please visit the Rare Earth Metals website at www.rareearthmetals.ca.
ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS INC.:
“Michael Stares”
President and CEO
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s filings that are available at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rare Earth Metals Inc.
Michael Stares
President and CEO
Phone: (807) 623-6840
Fax: (807) 623-9526
www.RareEarthMetals.ca