HALIFAX, NOVA SCOTIA -- (Marketwire) -- 03/07/11 -- Ucore Rare Metals Inc. (TSX VENTURE: UCU)(OTCQX: UURAF) ("Ucore" or the "Company") is pleased to announce the first NI 43-101 compliant independent resource estimate for the Company's 100% owned Bokan Mountain rare earth element (REE) project in southeastern Alaska. The resource estimate was prepared by Aurora Geosciences Ltd. ("Aurora") of Yellowknife, NWT who recommend that the deposit merits additional drilling, metallurgical research and economic investigation.
"This is a pivotal advancement for Ucore," said Jim McKenzie, President and CEO of Ucore. "It marks our transition from a junior exploration company to a fast track mine development enterprise. Ucore is now positioned as the 100% owner of America's only primarily heavy rare earth enriched deposit with an NI 43-101 compliant resource. A large percentage of Bokan's value lies in its unusually high content of metals that are strategically essential to America. These include heavy rare earths such as Dysprosium and Terbium; critical materials that the U.S. requires to compete at a world level, especially in the defense, ultra high technology and clean energy arenas. They are also materials that China is aggressively withdrawing from availability to the U.S., and have been earmarked as critically threatened by federal agencies. We're looking forward to working with national and state level stakeholders to bring this project to term in the shortest time possible."
Mineral resources were modeled by Aurora and reported at seven different total rare earth oxide (TREO) cut-off grades, with a base-case resource estimated using a TREO cut-off of 0.5%. At this cut-off, Bokan hosts an Inferred Mineral Resource of 3.7 million tonnes grading 0.75% TREO, with 39% of the TREO being the higher value HREO (heavy rare earth oxides).
TREO Cut-off TREO HREO/TREO Contained (wt %) Tonnes (wt %) (%) TREO (lbs) 0.8 1,021,000 1.054 36.8 23,718,000 0.7 1,549,000 0.951 37.7 32,467,000 0.6 2,489,000 0.834 39.6 45,751,000 0.5 3,669,000 0.746 38.6 60,325,000 0.4 5,276,000 0.654 40.0 76,049,000 0.3 6,126,000 0.613 40.8 82,765,000 0.2 6,702,000 0.580 41.3 85,673,000
Rare Earth grades by individual light rare earth oxides at the 0.5% cut-off are as follows:
La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 (kg/tonne) (kg/tonne) (kg/tonne) (kg/tonne) (kg/tonne) 0.77 2.20 0.26 1.08 0.28
Rare Earth grades by individual heavy rare earth oxides at the 0.5% cut-off are as follows:
Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 (kg/ (kg/ (kg/ (kg/ (kg/ (kg/ (kg/ (kg/ (kg/ (kg/ tonne) tonne) tonne) tonne) tonne) tonne) tonne) tonne) tonne) tonne) 0.03 0.27 0.05 0.29 0.06 0.15 0.02 0.11 0.01 1.88
Notes:
1. The calculated resource is sensitive to cut-off grade which will be
influenced by metallurgical operating costs. Ucore is advancing its rare
earth metallurgical studies at Hazen Laboratories in Denver, Colorado,
with the aim of developing a cost-efficient and effective metallurgical
flowsheet. No further information on metallurgy was available at the
time of this Resource calculation.
2. The mineral resource estimate was completed by Mr. Jim Robinson, Senior
Resource Geologist of Aurora. Mr. Robinson is an independent qualified
person for the purposes of NI 43-101 standards of disclosure for mineral
projects of the Canadian Securities Administrators and has verified the
data disclosed in this release. A Technical Report with the estimate
will be filed on SEDAR within 45 days.
3. The resource estimate has been classified as an Inferred Resource due to
the wide-spaced sample data within the current deposit outline.
4. The resource estimate is based on:
-- A database of 143 drill holes and channel samples totaling 8728.76 m
of diamond drilling and sampling completed by Ucore and its
predecessor in 2007, 2008, 2009, and 2010 on the combined Dotson
Ridge and I&L Zones.
-- All assays were performed by Stewart Group EcoTech, ALS Chemex and
Activation Laboratories.
-- Specific gravity (SG) used the overall mean of 2.77g/cc from 78 SG
readings.
-- Block model was estimated by Ordinary Kriging interpolation method
on blocks of 1x1x1m dimensions for the Dotson Zone and inverse
distance squared interpolation method on blocks of 0.5x0.5x0.5m for
the I&L Zone.
-- Assays exceeding the 98.5th percentile of the total sample
population for each element were cut to the 98.5th percentile.
-- All intercepts with a true width of less than 1.5 m were diluted to
a potential minimum mining width of 1.5 m.
-- All grades are based on weight percent.
The drill-defined Mineral Resource at Bokan is located within the Dotson and I&L Zones, situated to the southeast of Bokan Mountain. The Resource begins at surface and is open both at depth and to the east. As recommended by Aurora, Ucore intends to advance the understanding of the project with additional higher-density diamond drilling, planned to take place in the summer of 2011. Mineralogical and metallurgical research is underway, to augment a forthcoming Scoping Study of the deposit.
A full table of significant drill results from the Company's 2009-2010 exploration programs and maps and sections detailing the drill-hole locations and individual REE values are available at: www.ucore.com.
Bokan Mountain demonstrates a range of features that may facilitate near term development:
-- Excellent infrastructure, with immediate deepwater access in close
proximity to rail heads and shipping routes.
-- Alaska is a mining friendly jurisdiction with a proven history of
successful mine permitting. Alaska has several large mines, providing a
skilled local work force and mining related contractors.
-- An unusually high proportion of high value heavy rare earth oxides
(HREO). This Mineral Resource estimate shows HREO/TREO consistently
averages 40%.
-- An unusually high proportion of Dysprosium, Terbium and Yttrium; rare
earth elements in scarce supply and strong demand.
-- More than 30 known REE occurrences which will be further evaluated in
2011 and beyond.
Dysprosium has been ranked by the U.S. Department of Energy as the number one most critical strategic metal to the United States (See: http://energy.gov/news/documents/criticalmaterialsstrategy.pdf). In 2004, Dysprosium was valued at $30/kg, compared to current values of more than $450/ kg (See: metalpages.com). Industry experts have concluded that the price of Dysprosium could see a multifold increase over the next ten years, due to its strategically critical nature and lack of substitutes in defense and high technology applications.
NI 43-101 Compliance
Jim Robinson, P.Geol., an independent geologist with Aurora Geosciences, has prepared the technical data provided in this news release and is the qualified person responsible for its accuracy.
Background
Ucore Rare Metals Inc. is a well-funded junior exploration company focused on establishing REE, uranium and other rare metal resources through exploration and property acquisition. With multiple projects across North America, Ucore's primary focus is the 100% owned Bokan - Dotson Ridge REE property in Alaska.
The Bokan - Dotson Ridge project is located 60 km southwest of Ketchikan, Alaska and 140 km northwest of Prince Rupert, British Columbia and has direct ocean access to the western seaboard and the Pacific Rim. The property is located in an area reserved for sustainable resource development with an existing road network providing access to the main target areas. REE mineralization at the Bokan - Dotson Ridge project occurs in a well-demarcated vein system related to a Mesozoic peralkaline granitic complex. The Bokan - Dotson Ridge project is the only rare earth project currently documented worldwide which is situated on immediate deep water access, considered a significant advantage in expediting mine production and limiting the capital costs associated with mine construction.
In 1989, a U.S. Bureau of Mines study (Warner & Barker, USBM OFR 33-89) provided estimates of resources located at multiple largely unexplored zones located to the north, south and west of the Bokan Intrusive Complex. In turn, the greater Bokan area remains highly prospective for progressive ongoing exploration.
In 1996, a U.S. Bureau of Mines study (Green & Harbuck) concluded that: "The Bokan Mountain area on Prince of Wales Island, AK, contains vast quantities of heavy rare earth minerals." The report went on to postulate that the liberation of yttrium, considered a proxy for the prospective liberation of all HREE's, is highly amenable to metallurgical cracking methodologies.
A recent Ucore press release (see Ucore press release dated November 15, 2010) noted that the Dotson vein system has a high potential for an efficient mining and milling operation with rather limited environmental impact.
On behalf of the Board of Directors
Ucore Rare Metals Inc.
James McKenzie, President
This press 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 exploration drilling, exploration activities and events or developments that Ucore expects, are forward-looking statements. Although Ucore 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 forward- looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
Contacts:
Ucore Rare Metals Inc.
Mr. Jim McKenzie
President
(902) 482-5214
www.ucoreraremetals.com
