August 10, 2010 — THUNDER BAY, ONTARIO (Source: Marketwire) –Rare Earth Metals Inc (“Rare Earth Metals”, “RA“ or the “Company“) (TSX VENTURE:RA) is pleased to report significant Rare Earth Element results from the second batch of samples from its Letitia Lake/Red Wine property in west central Labrador.
The results consist of both channel samples from the Mann #1 Deposit and prospect samples collected from follow up prospecting of airborne geophysical anomalies (see previous press release dated July 20, 2010). Results include 1.22% TREO (Total Rare Earth Oxides) with 10 % HREO (Heavy Rare Earth Oxides), 0.13% Nb2O5, and 0.12% BeO over 44.4 meters on the Mann #1, and values up to 5.37% TREO (39% HREO) in prospect samples from the CD Zone, a newly discovered area of mineralization on the Playfair Option South Block. A summary of the results is as follows:
Mann #1 Trenching
Trench #2 – channel samples were taken over a 113.3 meter width and analytical results for all but 2 samples from the south end of the trench (a width 3.5 meters) have been received to date. Analytical results indicate there are two distinct mineralized zones within the 109.8 meter width. A 44.4 meter composite from the north end of Trench #2 averaged 1.22% TREO (10% HREO/TREO), 0.13% Nb2O5, and 0.12% BeO. A 3 meter composite from the south end of the trench averaged 1.63% TREO (16% HREO/TREO), 0.16% Nb2O5, and 0.08% BeO. The higher valued REO, Neodymium (Nd2O3) averaged 0.18% over the 44.4 meters mineralized zone and 0.26% over the 3 meter mineralized zone. Trench #2 is located approximately 40 meters east of Trench #1, which was previously reported as averaged 1.35% TREO (10% HREO/TREO), 0.52% Nb2O5, and 0.31% BeO over 30.0 meters. Analytical results from channel and chip sampling of an additional three trenches covering a 600 meter strike length of the zone are expected to be available later this month. A map of the Mann #1 trench locations can be found on the company’s website at www.RareEarthMetals.ca.
Playfair South
The Playfair South Block is located 28 kilometers southwest of the Mann #1 showing. The South Block property is part of a 313 claim unit property in which RA is earning a 51% interest from Playfair Mining Ltd. (TSX:PLY). The Playfair South Block encompasses 15 airborne anomaly clusters that have strike extents ranging from 200 meters to 1000 meters. Prospecting and geological mapping to date have resulted in 3 previously unreported mineralized showings on the PLY-S-02, PLY-S-05, and PLY-S-10 radiometric anomalies. The Playfair South Block mineralization is hosted by predominantly peralkaline intrusive rocks and is generally characterized by an abundance of Eudialyte mineralization and is dominated by Heavy REOs and Zirconium (ZrO2), while the Mann #1 Deposit and Michelin prospect mineralization is hosted mainly by peralkaline volcanic rocks and is generally Light REO dominated with substantial Niobium and Beryllium mineralization. A description of the results from three of the new discoveries is as follows:
| PLY-S-02 – (800 meter long radiometric anomaly) Prospect samples ranged from 0.11% to 1.38% TREO and 0.02% to 3.01% ZrO2. The TREO values ranged from 37% to 43% Heavy Rare Earth Oxides. | ||
| PLY-S-05 – (1000 meter long radiometric anomaly) Results included the discovery of a 5 to 13 meter wide actinolite chlorite schist zone exposed for a strike length of 110 meters. Traces of eudialyte have been reported and analysis of prospect samples returned values that ranged from 0.51% to 2.41% TREO and 0.09% to 0.48% ZrO2. The TREO values ranged from 5 % to 20 % Heavy Rare Earth Oxides. | ||
| PLY-S-10 (CD Zone) – Located 2 km southwest of the PLY-S-05 anomaly, this mineralization is described as a minimum 3 meter wide pegmatitic gossan zone with rare metal values ranging from 0.19% to 5.37% TREO and 0.05% to 2.56% ZrO2. The TREO values ranged from 26% to 85% Heavy Rare Earth Oxides. |
These zones are scheduled for channel sampling. Additionally, a number of other disseminated eudialyte zones have been located, however, results from prospect samples from these areas are pending.
Block 3 North
Block 3 North is located 13 kilometers southwest of the Mann #1 showing and is midway between the Mann #1 and the Playfair South Block. The block encompasses 9 airborne anomaly clusters that have strike extents ranging from 800 meters to 4500 meters and up to 1500 meters wide. Anomaly B3N-1 encompasses the North Red Wine No 1 and 2 eudialyte showings. Results of prospect samples from the B3N-1 radiometric anomaly ranged from 0.44% to 2.05% TREO and 0.24% to 1.48% ZrO2. The TREO values ranged from 18% to 42 % Heavy Rare Earth Oxides.
Field work, including prospecting, channel sampling and geological mapping is continuing on the various known mineralized zones and new prospects. Results from this will be released as they become available. Diamond drilling on the Mann #1 is scheduled to begin around mid August.
Commented Michael Stares, RA’s President and CEO, “These results help confirm our initial belief that the Red Wine Belt could be a significant Rare Metal District hosting both Light Rare Earth and Heavy Rare Earth deposits along with significant Beryllium, Niobium and Zirconium credits. Exploration planned over the next 12 months will include drilling and preliminary mineralogy which will help establish the economic potential of the prospects. The project’s proximity to transportation and electrical infrastructure and its location in one of the most mining friendly jurisdictions will ensure that the project can be advanced at a reasonable pace if the data warrants.”
All prospect and channel samples were delivered by Company personnel to Activation Laboratories Ltd.’s sample preparation facility in Happy Valley-Goose Bay. The samples were processed and representative pulps sent to Activation Laboratories Ltd.’s analytical facility in Ancaster, Ontario for analysis. The digestion technique was total digestion that employs a lithium metaborate/tetraborate fusion and the analysis is completed using ICP/MS.
The Company would also like to announce the termination of two option agreements. The Lackner Joint Venture agreement with 6378366 Canada Inc., 6070205 Canada Inc. and Jean-Claude Bonhomme has been terminated and the property returned to the Vendors. (See news release issued by East Energy Corp (TSX VENTURE:EEC) dated September 15, 2009, for details of the option agreement). The Hinton Coal Purchase Option agreement with Atlantic Capital Associates SL has also expired as per the terms of the agreement outlined in a press release dated June 10, 2010. The Company retains a 100% interest in the Hinton Coal Project.
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 presently has three advanced projects in Ontario and Newfoundland and Labrador, all exhibiting multi element potential (REEs, Niobium, Beryllium, Zirconium and Iron Ore) and proximity to available infrastructure. Its flagship property is the Clay-Howells Prospect. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under the company’s profile at www.sedar.com. Investors are invited to visit the Rare Earth Metals web site at www.rareearthmetals.ca.
ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS INC.:
“Michael Stares”, President and CEO
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.
“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.”