Quantum Rare Earth Developments Corp. Reports Significant Update to Resource Estimate at the Elk Creek Niobium Deposit, Nebraska
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/02/12 -- Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(OTCQX: QREDF)(FRANKFURT: BR3) ("Quantum", the "Company") is pleased to announce an updated National Instrument 43-101 compliant resource estimate for the Elk Creek Niobium - REE Project, located in southeastern Nebraska, USA. The updated Mineral Resource Estimate, prepared by Tetra Tech Wardrop (Tetra Tech) of Toronto, Ontario will be available on SEDAR and the Company's website within 45 days.
Highlights:
-- Addition of higher grade indicated status tonnage of 19.3 Mt grading
0.67% Nb2O5,
-- An increase in inferred status tonnage and grade from the previous
resource estimate (News Release dated April 28, 2011); from 80.1 Mt
grading 0.62% Nb2O5 to 83.3 Mt grading 0.63% Nb2O5.
The updated resource estimate for the Elk Creek Niobium Deposit has resulted in an overall increase in tonnage with an Indicated Mineral Resource of 19.3 million tonnes grading 0.67% Nb2O5 (using a 0.40% Nb2O5 cut-off grade), and an increase in Inferred Mineral Resources to 83.3 million tonnes grading 0.63% Nb2O5 (using a 0.40% Nb2O5 cut-off grade). The resource update is the result of an additional three holes completed by the Company at the Elk Creek Niobium Deposit in 2011. A summary of the resources, with sensitivity to cut-off grade is presented in Table 1.
Table 1.Mineral Resource Estimate, Elk Creek Niobium Deposit
Effective March 21, 2012
------------------------------------------------------------------------
Nb2O5% Tonnage Nb2O5% Contained Oxide
Classification cutoff (Mt) Grade t Nb2O5
------------------------------------------------------------------------
Indicated 0.70% 7.226 0.86 61,940
------------------------------------------------------------------------
Indicated 0.60% 11.373 0.78 88,770
------------------------------------------------------------------------
Indicated 0.50% 15.844 0.71 113,271
------------------------------------------------------------------------
Indicated 0.40% 19.319 0.67 129,182
------------------------------------------------------------------------
Indicated 0.35% 19.632 0.66 130,376
------------------------------------------------------------------------
------------------------------------------------------------------------
Inferred 0.70% 20.984 0.80 167,447
------------------------------------------------------------------------
Inferred 0.60% 44.596 0.72 320,521
------------------------------------------------------------------------
Inferred 0.50% 71.333 0.66 468,026
------------------------------------------------------------------------
Inferred 0.40% 83.288 0.63 523,844
------------------------------------------------------------------------
Inferred 0.35% 83.744 0.63 525,591
------------------------------------------------------------------------
1. Effective date of the resource estimate is March 21, 2011
2. Resource estimate based on historic and recent Nb2O5% assay values.
3. Wardrop considers a base case cut-off grade of 0.40 Nb2O5% to be
reasonable in the absence of metallurgical data and economic parameters
(i.e. operating costs).
4. Average specific gravity of 2.96 g/cc.
5. The resource estimate has been classified as having both Indicated and
Inferred Mineral Resources. The Indicated resources are based on an
interpolation with a minimum of three drill holes within an average distance
of less than 80 m. All other blocks within the IK wireframe are classified
as Inferred resources.
6. Resource Estimate is based on:
- An Indicator Kriged (IK) wireframe, defining a 45% probability of
achieving or exceeding a cut-off of 0.4 Nb2O5%, was generated on block size
of 20 m x 20 m x 10 m.
- Geological model bounded by the IK wireframe. The IK wireframe was
generated based on the 27 drill holes totalling 16,595 m of diamond
drilling.
- Block model estimated by OK interpolation method on block size 20m x 20m x
10m. The OK estimation was generated based on 17 drill holes that intersect
the mineralized IK wireframe.
- Resource Estimate assumes 100% recovery as metallurgical results are not
available.
The Elk Creek Niobium Deposit is an elongate, approximately east-west orientated mineral occurrence, in excess of 800 meters along strike. The deposit remains open to the east, west and at depth and is hosted by the Elk Creek Carbonatite; an intrusive complex of carbonatite and related rocks.
"The addition of a substantially higher-grade indicated Mineral Resource gives us confidence in our continued development efforts of this very large and high grade niobium deposit," states Peter Dickie, President of Quantum.
In accordance with recommendations from Tetra Tech, the company is planning an exploration program of both infill and expansion drilling. The goals of this program will be to increase both the indicated and inferred resource base, and expand upon the higher grade portions of the deposit.
The metallurgical test program is on-going, and is based on composite samples of drill core obtained from the 2011 drill core. The work is being conducted at the Hazen Research Inc. facility in Golden, Colorado.
Qualified Persons:
Paul Daigle, BSc, P.Geo., from Tetra Tech, is an independent qualified person as defined by NI 43-101, and is responsible for the mineral resource estimate for the Elk Creek Niobium Deposit and has verified the data disclosed in this release.
Mr. Neil McCallum, P.Geo., from Dahrouge Geological Consulting Ltd., is the qualified person as defined by NI 43-101, responsible for the Elk Creek Carbonatite Project and has read and approved the technical disclosure contained in this news release.
Quantum is developing the Elk Creek Carbonatite, the only primary niobium deposit known to be under development in the U.S., and the highest grade undeveloped niobium deposit in North America. Niobium is mainly used in the form of Ferro-Niobium to produce HSLA (High Strength, Low Alloy) steel, to produce lighter, stronger steel for use in automotive, structural and pipeline industries. The U.S. imports 100% of its niobium needs. Niobium is listed as a strategic metal, and is being considered for national stockpiling in the U.S., China, and several European countries.
The Company also announces it has accepted the resignation of James McCrea from the Board. Quantum thanks Mr. McCrea for his past contributions and wishes him well in his future endeavors.
On Behalf of the Board,
Peter Dickie, President, CEO
Cautionary note: This news release contains forward looking statements. These statements include, but are not limited to, statements with respect to the completion of an updated resource estimate, the commencement of a preliminary economic assessment study and management's expectation that the results of these studies will confirm the potential of the Elk Creek Project. Specifically, any statements regarding the potential increase of the Company's inferred resource at the Elk Creek Project and the goals and objectives of the Company are by their nature forward looking information. Resource estimates, unless specifically noted, are considered speculative. The Company has filed a National Instrument 43-101 report on the Elk Creek Project. 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 known and unknown risks 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. Other factors may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.
Specific risk factors include risks associated with the ability obtain any necessary approvals, waivers, consents and other requirements necessary or desirable to permit or facilitate the development of the Company's properties, risks associated with project development; the need for additional financing; operational risks associated with exploration activities and results, mining and mineral processing; environmental liability claims and insurance; reliance on key personnel; tax consequences; and other risks and uncertainties.
The business of exploring for minerals involves a high degree of risk.
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 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.
Peter Dickie
President, CEO
(604) 568-7365
(604) 688-4215 (FAX)
www.QuantumRareEarth.com
