New Discovery of REE on Greenland Licences

RNS Number : 0658U

Rare Earth Minerals PLC

13 October 2014

 

13 October 2014

Rare Earth Minerals Plc.

("Rare Earth Minerals", "REM" or "the Company")

New Discovery of REE on Greenland Licences

Rare Earth Minerals Plc (AIM: REM) announces, further to its release on the 24 September 2014,  that the analysis of samples taken during the recent exploration programme on its 100% owned Greenland exploration licenses has identified a new discovery of Rare Earth Elements ("REE") in southern Greenland near Narsarsuaq .

Highlights:

·    16 samples were re-submitted for full suite of REE analyses with results exceeding the Company's expectations.

·    5 of 16 samples exceeded 7,000 ppm Total Rare Earth Oxides ("TREO") with a further two exceeding 2,000 ppm TREO, with the highest value being 18,179 ppm (1.82%).

·    These results included three significant neodymium oxide (Nd₂O₃) assays which contained 2,928 ppm of Nd₂O₃.

·    Samples were taken from the target area which previously reported mineralised samples of zinc, manganese, silver and gold.

Kiran Morzaria, the Company's Chief Executive Officer commented:

"The discovery of a new Rare Earth Element deposit east of the world class Kvanefjeld REE project is significant for REM.  These assay results are orders of magnitude higher than those previously reported and are indeed higher than the reported resource grades on the nearby Tanbreez deposit. In addition some of these samples contain significant quantities of neodymium oxide, which is a critical rare earth oxide or CREO as defined by the US department of energy. This along with the proximity of these results to two of the world's largest REE deposits, is very encouraging indeed."

REE Sampling Results:

Exploration on REM's 100% owned  2012/14 licence, which straddles the contact of the Julianehåb Granite and the Eriksfjord Sandstone, initially showed anomalous zinc in pan concentrates to 1,580 ppm Zn. Lithological sampling in the Eriksfjord Sandstone located samples to 0.38% Zn in float, results that indicated more work was required in the area.

Follow up sampling located significant gold anomalism in veined sandstone with a sample grading 2.59g/t Au and anomalous silver in some of the lithological samples (1.2-6.2 ppm Ag).

Samples taken in the area known to contain mineralisation of up to 0.3% Zn and 2% manganese, returned REE results that were above the detection limit of 500 ppm for Cerium and Niobium, as a result 16 samples were resubmitted for a full suite of REE analysis.

We are reporting today on the analytical results of these 16 samples. Five samples exceeded 7,000 ppm of TREO with the highest being 18,179 ppm TREO. Three samples, one at 9,240 ppm TREO, the second at 9,148 ppm TREO and the third at 18,179 ppm contained Nd₂O₃ of 1,540 ppm, 1,446 ppm and 2,928 ppm respectively.

The analysis was carried out on outcrop, sub crop and float samples, we are now compiling and interpreting all the results from the programme to determine the scope of further field work, and in particular determine a possible source for the highly anomalous REE results reported on today.

Qualified Person:

Qualified Person Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Glossary:

·    TREO is the sum of the oxides of the heavy rare earth elements (HREO) and the light rare earth elements (LREO).

·    CREO, the term was originally defined in the US Department of Energy "Critical Materials Strategy 2010". There are 5 CREOs (neodymium, praseodymium, dysprosium, terbium and europium), with neodymium being the largest by values and volume. Criticality of CREOs is based on their importance to sustainable clean energy and the supply risk of such elements over the short (0-5 years) and medium term (5-15 years).

·    ppm - parts per million.

- Ends -

For further information please contact: 

Rare Earth Minerals plc                                                                   [phone]

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Joint Broker)                               [phone]

James Joyce

Mark Leonard

Hume Capital plc (Joint Broker)                                                     [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick, Mark Longson                                                                  [phone]

 

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