Quantum Rare Earth Developments Options Out Australian Properties
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/02/11 -- Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(OCTQX: QREDF)(FRANKFURT: BR3) ('Quantum', the 'Company') is pleased to announce that it has entered into an option agreement (the 'Option Agreement') whereby Florella Holdings ('Florella') can earn an 80% interest in the Australian Jungle Well and Laverton properties (collectively the 'Australian Properties').
The recently completed 2011 exploration program at Jungle Well, included the re-evaluation of an ultramafic dyke, to confirm historic REO values for samples collected in 2007 and 2009. The Jungle Well project is located about 40 km west of the town of Leonora, Western Australia and approximately 160 km southwest of Lynas Corporation's Mt. Weld Rare Earth Element Mine.
A total of nine grab samples were taken along the length of the dyke, and all showed highly elevated Total Rare Earth Oxides(i) ('TREO') values of 0.93% to 12.80% (see Table below). The samples showed variable REE distribution, with persistent enrichment in Neodymium and Heavy Rare Earth Oxides. Absolute concentrations of Neodymium (Nd2O3) ranged from 0.12 to 1.76%. As a percentage of TREO, the MHREO component ranged from 6.3 to 13.1%.
The Mt. Weld deposit, of Lynas Corp Ltd., contains a resource of 17.49 million tonnes at an average grade of 8.1% TREO, with a cut-off grade of 2.5% TREO. Given the high grades of the Jungle Well samples, in combination with large circular magnetic features on the property, Quantum's management is encouraged with the recent results.
Table 2011 Sampling Results, Jungle Well Project
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53790 53791 53794 53795 53796 53797 53798 53800 53801 53802
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La2- 0.68 1.83 3.42 1.33 0.50 0.43 0.42 0.27 0.36 4.23
O3
(%)
Ce2- 4.05 3.16 4.66 1.92 0.50 0.51 1.71 0.39 1.15 4.74
O3
(%)
Pr2- 0.12 0.32 0.59 0.22 0.08 0.07 0.07 0.04 0.06 0.71
O3
(%)
Nd2- 0.36 0.95 1.76 0.69 0.25 0.21 0.21 0.12 0.19 2.06
O3
(%)
Sm2-657.50 1120.18 2203.25 847.67 309.62 218.01 321.21 171.62 287.58 2411.98
O3
(ppm)
Eu2-106.76 137.79 260.53 106.76 39.83 23.85 47.94 26.40 40.53 267.48
O3
(ppm)
Gd2-544.03 613.19 1187.19 516.37 202.86 92.21 223.61 140.62 207.47 1233.30
O3
(ppm)
Tb2-106.12 81.49 161.14 67.22 25.32 11.28 35.91 17.96 35.91 150.78
O3
(ppm)
Dy2-727.63 463.66 795.34 364.96 129.69 54.51 223.80 98.13 230.68 799.94
O3
(ppm)
Ho2-134.02 83.85 143.19 68.50 24.74 9.39 43.07 19.02 46.05 122.57
O3
(ppm)
Er2-395.64 241.27 394.50 195.54 68.04 24.01 131.50 48.03 142.94 316.74
O3
(ppm)
Tm2- 59.39 35.18 54.59 26.50 8.68 3.20 19.19 6.40 21.93 40.66
O3
(ppm)
Yb2-384.87 215.21 324.52 149.17 47.26 19.36 120.70 34.16 133.23 219.77
O3
(ppm)
Lu2- 50.94 28.20 44.12 21.15 6.60 2.50 15.69 5.00 17.74 27.52
O3
(ppm)
Y2- 0.38 0.28 0.49 0.27 0.10 0.04 0.14 0.05 0.15 0.49
O3
(%)
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TREO 5.91 6.83 11.48 4.66 1.52 1.30 2.68 0.93 2.02 12.80
(%)
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LREO 5.22 6.26 10.43 4.16 1.34 1.22 2.42 0.82 1.75 11.75
(%)
MREO 0.13 0.19 0.37 0.15 0.06 0.03 0.06 0.03 0.05 0.39
(%)
HREO 0.56 0.39 0.68 0.36 0.13 0.05 0.20 0.07 0.21 0.66
(%)
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LREO 88.3 91.5 90.9 89.1 87.8 93.7 90.3 88.4 86.9 91.8
/TREO
MHREO 11.7 8.5 9.1 10.9 12.2 6.3 9.7 11.6 13.1 8.2
/TREO
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The mineralized dyke was traced for approximately 70 meters through a series of pits, trending northwest to southeast. The maximum sampled thickness was 0.5 metres. In addition, a historic drill log for hole RED 3/4, drilled in 1997 by Western Diamond Corp., recorded an intersection of an ultramafic unit below the sample pits. The drill hole, with a dip of -60 was collared 17 metres away from the dyke and intersected a 5 metre thick ultramafic unit at 25 to 30 metres depth. The hole was ended at 31.4 m, after encountering drill problems. It is interpreted that the ultramafic unit intersected within the drill hole is the same REE- bearing unit at depth.
It is anticipated that a follow-up exploration will include a high-resolution radiometric and magnetic airborne survey, additional sampling of the known ultramafic, with sampling of other mafic- or ultramafic dykes located within the immediate vicinity.
(i) Total Rare Earth Oxides (TREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.
Light Rare Earth Oxides (LREO) include: La2O3, Ce2O3, Pr2O3 and Nd2O3.
Middle Rare Earth Oxides (MREO) include: Sm2O3, Eu2O3 and Gd2O3.
Heavy Rare Earth Oxides (HREO) include: Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.
Middle to Heavy Rare Earth Oxides (MHREO) is the sum of MREO and HREO.
Pursuant to the terms of the Option Agreement dated for reference September 19, 2011 between Florella and the Company's Australian subsidiary, Florella has been granted an option (the 'Option') to acquire up to an 80% interest in the Australian Properties in consideration of:
i. cash payments to Quantum of $60,000 (CA) on signing (paid);
ii. a further cash payment of $120,000 (US) within 14 days of exercise of
the Option;
iii.the issuance to Quantum of shares of Florella's newly listed public
company ('Newco'), upon completion of an IPO, valued at IPO issue price
totaling no less than $750,000 (AUD) in value; and
iv. the payment to Quantum of up to $60,000 (CA) as reimbursement for costs
incurred in preliminary exploration work carried out by Quantum on the
Australian Properties during the summer of 2011.
Completion of the terms in the Option Agreement will result in Newco owning an 80% interest and Quantum retaining a 20% interest in the Australian Properties. The parties will then form a joint venture, with Quantum's interest to be carried to Commercial Production.
Quantum is pleased to conclude this Option Agreement, as it will result in an accelerated work program at Jungle Well, while allowing the Company to focus on the development of the Elk Creek Carbonatite, located in Nebraska.
Jody Dahrouge, PGeol, a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
On Behalf of the Board,
Peter Dickie, President
Cautionary note: This report may contain forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 43-101 report on the Archie Lake property, on the Elk Creek Carbonatite property, and intends to file additional NI 43-101 reports on additional properties as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as 'reserves' unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
'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.'
Contacts:
Quantum Rare Earth Developments Corp.
(604) 568-7365
(604) 568-7506 (FAX)
www.QuantumRareEarth.com
