SPECIAL PULL-OUT SECTION ON GOLD

Volume 8 Issue 4 RARE EARTH EXPLORATION UPDATE

Examining Bill C-300 p.28

Natural gas in Québec p.53 Exploring Peru & Dominican

$ Republic 5.95 CDN / US No.40845066 Publications Mail Agreement

www.resourceworld.com www.resourceworldtv.com Don Bubar, President/CEO, Avalon Rare Inc. INVESTORPage KITS 60 The rare earth exploration sector is heating up as many TSX Venture Exchange companies fan out across the globe acquiring prospects in the search for hi-tech metals

Rare Earth exploration update

by Ellsworth Dickson

s could be witnessed at the eign investment regulator. Lynas owns the is due out shortly. Below is a selection recent Prospectors & Developers world’s richest rare earth deposit at Mount of exploration and project updates for a A Conference in Toronto, there was Weld in Western Australia. The Australia number of rare earth explorers and mine a tremendous interest in rare earths on government said China’s ownership must developers. the part of both explorers and investors. be less than 50% and Chinese directors Alkane Resources Ltd. [ALK-ASX], based Speaking engagements by market ana- must not take up more than half the board. in Perth, Western Australia, is exploring the lysts, following the rare earth sector, drew Rare earths are critical for the manu- Dubbo Zirconia Project in New South Wales, standing room only crowds eager to gain facture of green-related products such as Australia. The project, which has good valuable knowledge as to how to play this hybrid and electric cars, wind and tidal infrastructure, hosts measured resources important and fast-developing sector. power, flat screen displays and monitors, down to 55 metres of 35.7 million tonnes

China controls about 95% of world rare speaker magnets – the list goes on. In 2008, grading 1.96% ZrO2 (zirconium), 0.46%

earth production and is increasingly reluc- global demand was 124,000 tonnes Total Nb2O5 (niobium), 0.03% Ta2O5 (tantalum),

tant to sell rare earths to the rest of the Rare Earth Oxides (TREO) worth US $1.25 0.14% Y2O3 (yttrium), 0.75% Rare Earth

world. A shortage is likely to develop in the billion. The forecast demand for 2014 is Oxides, 0.04% HfO2 (hafnium) and 0.014%

future unless other viable rare earth depos- 200,000 tonnes TREO valued at US $2-3 U3O8 (uranium). There is another 37.5 mil- its are found and brought to production. billion, assuming a 10% per annum growth lion tonnes of inferred resources at similar In a related matter, in September 2009, rate and not including demand from new grades. Although the mineralization is not China cancelled a $500 million investment technologies. classified as a radioactive deposit, it contains in Australia rare earth company Lynas Concerned about a secure supply of rare 23 million lbs. uranium. Production of ura- Corp. after not being able to satisfy the earths, the US Congress commissioned a nium is not allowed in New South Wales. A requirements imposed by Australia’s for- government report on the subject which feasibility study has been completed and a

16 www.resourceworld.com APRIL 2010 LEFT: Michael Lafferty (Fort Resolution, camp intersected 43.0 metres of high-grade REE TREO, or total rare earth oxides, refer to assistant), left, and Angus Lockhart (LutselK’e, mineralization in the Basal Zone averaging the elements lanthanum to lutetium, plus camp assistant) in front of the Avalon Rare Metals exploration camp at Thor Lake located 1.89% TREO with 27.2% HREO. yttrium, expressed as oxides. See Avalon’s 100 kilometres southeast of , The heavy rare earth elements Basal website for conversion factors from ele- Northwest Territories. Photo courtesy Avalon Zone hosts indicated resources of 9 million ments to oxides. Heavy rare earth oxides Rare Metals Inc. tonnes grading 1.86% TREO with 23.1% (HREO) refer to the elements europium to being HREO. Inferred resources stand at lutetium, plus yttrium, expressed as oxides development commitment is expected late 60 million tonnes grading 1.96% TREO. as a percentage of the TREO. Light rare this year. A pre-feasibility study by Scott Wilson earths (LREO) refer to the elements lantha- Artha Resources Corp. [AHC-TSXV] RPA is advancing and on track for spring num to samarium, expressed as oxides. has staked over 60,000 hectares in Jujuy 2010 completion. The study is evaluat- and Salta Provinces in northwest Argentina ing a potential initial rate of 1,000 joint business opportunities including that are prospective for a variety of light tonnes per day and rising to 2,000 TPD. A environmental remediation work related to and heavy rare earths elements, includ- 1,600-metre decline (sloping tunnel) would historical exploration activities. Committed ing yttrium. Rare earth mineralization access the ore body 200 metres below to the principles of environmental and observed at the Susques property, which surface. social responsibility, Avalon was the first covers more than 20,000 hectares in south- Avalon holds other rare earth and rare junior exploration company to formally ern Jujuy Province, is hosted in stockwork metals projects, including the Separation adopt PDAC’s e3 Plus principles and guide- veins with the host structures up to 10 Rapids Lithium Project, the Lilypad Lakes lines as policy of the company. metres wide and over six kilometres in Tantalum Project and the Warren Township “Avalon is honoured to accept PDAC’s strike length. Exploration began in March. Anorthosite Project, all in Ontario. The Environmental & Social Responsibility The Susques Project is near Artha’s silver company also has the East Kempville tin- Award.” beamed Don Bubar, President/ prospects. indium project in Nova Scotia. CEO during his remarks,“ I have been Avalon Rare Metals Inc. [AVL- At this year’s PDAC Convention, Avalon actively advocating for greater participa- TSX; AVARF-OTCQX] is one of the more received the 2010 Environmental & Social tion by aboriginal peoples in our industry advanced players in developing rare Responsibility Award in recognition of the and greater co-operation between com- earth mineral prospects. The company company’s community engagement efforts panies and communities. Thor Lake has recently reported drill results from the during the exploration of its Nechalacho provided an opportunity to practice what 2010 winter work program on its flag- rare earth project. Avalon received the I have been preaching.” ship, 100%-owned, Nechalacho rare earth award for being a leader in promot- Azimut Exploration Inc. [AZM-TSXV] elements (REE) deposit, at Thor Lake, ing responsible exploration practices, has farmed out a 65% interest in its Diana Northwest Territories. Drilling began emphasizing early engagement and open copper-cobalt-rare earth property in in January and a second drill rig was communication with communities around Nunavik, Québec to a numbered Ontario mobilized in February. The rigs are test- Thor Lake. The company has encouraged company. The 237 square kilometre prop- ing exploration targets on the southern skills training and employment opportuni- erty has lake bottom sediments grading extension of the deposit. The first hole ties for aboriginal people and has offered up to 559 ppm copper, 191 ppm cobalt,

Light REE: Heavey REE: La = Lanthanum Eu = Europium Ce = Cerium Gd = Gadolinium Pr = Praseodymium Tb = Terbium Nd = Dy = Dysprosium Sm = Samarium Ho = Holmium Er = Erbium Tm = Thulium Yb = Ytterbium Lu = Lutetium Y = Yttrium

APRIL 2010 www.resourceworld.com 17 129 ppm yttrium, 260 ppm lanthanum, Cache Exploration Inc. [CAY-TSXV] is FDCFF-OTC] discovered rare earth mineral- 612 ppm cerium, 68 ppm samarium and earning an 80% interest in three rare earth ization in intrusive rock outcroppings over 11 ppm europium. A $700,000 program is prospects in eastern Canada: the Welsford a 10 by 10 kilometre area 13 kilometres planned for the first year of work. Project, located 20 kilometres north of southeast of Areva’s Kiggavik uranium Bolero Resources Corp. [BRU-TSXV] Saint John, New Brunswick, and the Cross deposit in the Thelon Basin of Nunavut. has an option to acquire a 100% inter- Hills and Louil Hills prospects, both in Called the Nutaaq area, the ground is est in the Carbonatite Syndicate rare earth Newfoundland. All three properties host 100% owned by Forum, subject to a 2% claim group, surrounding private com- rare earth mineralization which have been NSR royalty to Nunavut Tunngavik Inc. pany Spectrum Mining Corp.’s recently sampled and assayed with encouraging Twenty-nine samples graded over 0.1% reported Wicheeda rare earth discovery. results. Cache has planned detailed ground total TREO, with a peak of 2.7% TREO. The Carbonatite Syndicate claim group is and airborne exploration for spring/sum- Gold Canyon Resources Inc. [GCU- 80 kilometres northeast of Prince George, mer 2010. TSXV] and Japan Oil, Gas and Metals British Columbia, and comprises 43 min- Canadian International Minerals National Corp. have signed a joint explo- eral claims covering approximately 16,072 Inc. [CIN-TSXV] can earn a 75% in ration agreement with a view to identify hectares. Highlights from Spectrum’s neigh- the Carbo property, located about 80 REE resources. The partners have an option bouring property included a 48.64-metre kilometres northeast of Prince George, to evaluate and lease tailings from mine interval which averaged 3.55% REE, a British Columbia, that hosts a series of dumps from iron oxide-copper-gold-REE 72-metre interval that averaged 2.92% REE, niobium and rare earth element-bearing deposits at Iron Mountain, Missouri and and a 144-metre interval which averaged carbonatite and alkaline intrusions. CIN Benson Mines, New York. The JV is also 2.20% REE in three separate drill holes. has been granted a 5,000-hectare Mineral evaluating REE prospects in Scandinavia. Butler Resource Corp., now trading as Exploration Licence in the Knee Lake Great Western Minerals Group Ltd. Quantum Rare Earth Developments region in central Manitoba that is prospec- [GWG-TSXV; GWMGF-OTCQX] is a Corp. [QRE-TSXV], has acquired Silver tive for rare earths. The company also has a Saskatchewan-based junior exploration Mountain Mines Corp., a private Nevada 100% option on the Deadhorse Creek REE and development company. With a mine- corporation that has signed a Letter of property about 25 kilometres northwest of to-market business model, the company Intent to acquire North East Minerals Pty. Marathon, Ontario. acquires and develops rare earth mineral Ltd., a private Australian company, that Commerce Resources Corp. [CCE-TSXV] properties in North America and South owns a 100% interest in West Australian is an exploration and development company Africa. The 100%-owned Hoidas Lake Rare Tenement E29/679 (fully granted), known focusing on tantalum, niobium and rare Earth Project in Saskatchewan is one of as the Jungle Well Project, and a 100% deposits with a potential for economic North America’s most significant primary interest in West Australian Tenement grades and large tonnages. The company is REE properties currently being developed E38/2374 (pending grant), known as the specifically focused on the development of with high values in neodymium. In January Laverton Project. Both projects are con- its Upper Fir tantalum and niobium deposit 2009, the company signed an option agree- sidered prospective for rare earth elements north of Kamloops, eastern British Columbia. ment with Rare Earth Extraction Co. Ltd. and are located in the same mineral field Commerce farmed out a 75% interest in the of Stellenbosch, South Africa, to refurbish, where Lynas Corporation Ltd.’s [LYC- Carbo Project to Canadian International re-commission, and operate the currently ASX] Mt. Weld rare earth deposit is being Minerals (see above). abandoned Steenkampskraal Mine, South developed. The Mt. Weld Project is a world Dacha Capital Inc. [DAC-TSX; Africa. The agreement allows GWG the class deposit with a reported resource of DCHAF-OTCQX] is controlled by Forbes right to acquire exclusive access to 100% 7.7 million tonnes grading 12% for 917,000 & Manhattan, a private merchant bank, of the rare earth elements mined there. tonnes of rare earth oxides. whose business plan is to acquire, stock- GWG subsidiary Great Western Through the acquisition of Silver pile and export heavy rare earth elements Technologies Inc. has a production facility Mountain, Quantum has an option to outside of China. Dacha will also be a in Troy, Michigan for extractive metal- earn a 100% interest in several rare earth source of capital to purchase excess inven- lurgy, mineral processing, and specialty prospects in the Thunder Bay Mining tory, reducing volatility. alloys manufacturing. It processes specialty Division of Ontario. The company also Fieldex Exploration Inc. [FLX- metal alloys and powder products, includ- owns the Archie Lake REE property TSXV] is exploring the Delbreuil Canton ing materials that utilize REEs. located 50 kilometres east of Uranium City, and Lac Sairs properties in the Abitibi- GWG subsidiary, Less Common Metals Saskatchewan and 50 kilometres south of Temiscamingue region of northwest Québec Ltd., near Liverpool, UK, is a world leader the Great Western Minerals Hoidas Lake as well as the Case property located about in the manufacture and supply of rare REE deposit. Historic exploration and 80 kilometres east of Cochrane, northeast earth based alloys and high purity metals results at Archie Lake returned significant Ontario. focused on the permanent magnet industry. concentrations of REEs. Forum Uranium Corp. [FDC-TSXV; With considerable experience in the pro-

18 www.resourceworld.com APRIL 2010 duction of materials to tight compositional Spectrum Mining’s Wicheeda reported rare the mineralized envelope increased to at least tolerances and controlled microstructures, earth discovery. Int’l Montoro will be com- 500 metres and the mineralized envelope is at LCM offers an innovative and highly flex- missioning a geological report and starting least 135.2 metres in vertical thickness. Lab ible approach to a wide range of material a work program in the near future as soon results for holes BZ-09-015 to 019 returned requirements. as the property is accessible multiple, high-grade TREO intersections Greenland Minerals and Energy Ltd. Matamec Explorations Inc. [MAT- of between 1.03% and 3.74% over verti- [GGG-ASX; Pink Sheets] has acquired TSXV] has received some assay results for cal thicknesses of 3.0 to 38.5 metres. HREE an exploration license over the northern its November-December 2009 diamond represents between 28.8% and 71.0% of Ilimaussaq Intrusive Complex, southern drilling program on the central part of the TREO content intersected in the new Greenland, a geological entity with poten- the Kipawa rare-earth-elements-yttrium- drilling. tial for specialty metals, particularly rare zirconium deposit located within the Rare Earth Metals Inc. [RA-TSXV] earth elements. Since acquiring the project Zeus property, Temiscamingue, Québec. has resumed drilling on the Clay-Howells in mid-2007, exploration has confirmed the Best results are 0.976% TREO over 17.55 Project in Northern Ontario following talks potential, and the Kvanefjeld Project is now metres in hole 09-KM-56 and 1.05% TREO with local First Nations and the provincial recognized as one of the world’s largest unde- over 10.31 metres in hole 09-KM-60. The government. The current drill program is veloped resources of rare earth elements and intersections average 30-36% heavy rare focused on redefining the historic Clay- uranium. The ores are also strongly enriched earth oxides and Y2O3 of the TREO. Every Howells magnetite deposit and establishing in zinc and sodium fluoride. hole for which analysis has been received the grade of rare earth elements, niobium Hinterland Metals Inc. [HMI-TSXV] intersected a mineralized zone. Many holes and iron in the deposit. An assay of has acquired two REE projects in Québec: contain rare-earth-elements-yttrium-zirco- 3.46% TREO over 7.6 metres, including the LuLa Project, 200 kilometres north- nium intersections in multiple horizons. 4.71% over 4.6 metres were obtained from east of Schefferville in Labrador, and the Midland Exploration Inc. [MD-TSXV] recently assayed historic drilling. The com- Kipawa property, 20 kilometres northeast of has agreed to Japan Oil, Gas and Metals pany’s Lackner Lake Carbonatite is a 30 Temiskaming, northwest Québec. For 2010, National Corp. earning a 50% interest square kilometre circular alkalic complex airborne geophysics followed by surface in its 679 square kilometre Ytterby REE with historic niobium and iron resources prospecting and sampling is planned for project located between 200 and 230 located 20 kilometres east of Chapleau, LuLa, which is adjacent to Quest Uranium’s kilometres east and northeast of Schefferville, northern Ontario, where a new REE dis- Strange Lake REE property. Soil sampling Québec. The Ytterby main claim block is covery at Pole Lake returned values up to at Kipawa will test several areas where total situated five kilometres south of the Strange 7.49% TREE over a minimum of 3 metres REE values reached 1,091 ppm. Lake REE deposit and the B Zone REE discov- of width. Rare Metals’ first drill hole cut a Hudson Resources Inc. [HUD-TSXV] is ery announced by Quest Uranium in 2009. 144.5 metres of 0.45% TREO. advancing its 100%-controlled Sarfartoq Midland controls, almost entirely, the Napeu Rare Element Resources Ltd. [RES-TSXV] rare earth project in Greenland where it Kainiut pluton which hosts the Strange Lake was created to develop the Bear Lodge gold has identified three REE prospects all coin- peralkakine complex. and REE deposits in northeast Wyoming. cident with large radiometric anomalies. A Neo Material Technologies Inc. [NEM- A recently completed NI 43-101-compliant total of 25% of 168 rock samples, collected TSX] is a producer, processor and developer inferred resource estimate indicates a REE in 2009, assayed between 1% and 9.8% of neodymium-iron-boron magnetic pow- deposit containing 9.8 million tons averaging TREO. In 2009, 1,400 metres of drilling ders, rare earths and zirconium-based 4.07% rare earth oxides (REO), including 4.5 was completed. engineered materials and applications. million tons of oxides averaging 4.3% REO. First phase drilling is planned to start Based in Toronto, Ontario, the company Initial metallurgical testing of the oxide in April and will focus on expanding the has about 1,375 employees in 19 locations material demonstrated a 70% recovery. Drill rare earth zones at ST1 and ST40, which in 10 countries. hole RES09-8 returned an estimated aggre- returned good RRE values in last year’s Quest Uranium Corp. [QUC-TSXV] is gate true thickness of 213.4 feet averaging drilling. This season’s work includes geo- advancing several high-potential projects 5.54% REO. physical surveys, environmental baseline in Canada’s premier exploration areas: the Newmont Mining Corp. [NWM-TSX; studies, a minimum 3,000-metre drilling Strange Lake area of northeast Québec, NEM-NYSE] can earn a 65% working program and metallurgical studies. the Kenora area of northwest Ontario and interest in Rare Element Resources’ prop- International Montoro Resources Inc. the Plaster Rock area of northwest New erty, excluding any rights to the rare earth [IMT-TSXV] recently completed the acqui- Brunswick. At Strange Lake, assay results elements but including rights to gold and sition of 100% interests in five claim blocks from the B-Zone REE deposit have confirmed other metals, by spending US $5 million on totaling 2,268 hectares of rare earth pros- the significant resource potential of the zone. exploration over five years. pects northeast of Prince George, British Drilling returned strong REE assays over a Stans Energy Corp. [RUU-TSXV] owns Columbia. The Chuchinka claims adjoin minimum strike of 1.1 kilometres. Widths of five mineral properties in Kyrgyzstan, of

APRIL 2010 www.resourceworld.com 19 Camp safety meeting. Camp supervisor Randy O’Keefe demonstrates the correct use of a fire extinguisher at Avalon Rare Metals’ Nechalacho exploration camp. Left to right: Randy O’Keefe, Diane Tucker (cook), Clifford Larkin (camp assistant), Tracy Riley (cook helper) and Lawrence Goulet (camp assistant). Photo courtesy of Avalon Rare Metals Inc.

which Kutessay II is most advanced. The 149.3 metres. property previously produced 80% of the TNR Gold Corp. [TNR-TSXV] has former Soviet Union’s REEs from 1960-1991 acquired, by staking, the Big Beaverhouse in an open-pit mine. There is good infrastruc- carbonatite complex located 450 kilometres ture, a rail line 43 kilometres away, electrical north of Thunder Bay, northwest Ontario. power on site, and the mine is located 140 The Big Beaverhouse is one of the largest kilometres by paved road from Kyrgyzstan’s carbonatite complexes in Ontario, mea- capital city of Bishkek. The deposit contains suring six kilometres in diameter with a all 15 REEs and formerly produced every surface area of about 16 square kilometres. REE at purities up to 99.99%. Partial REE analyses conducted by the Tasman Metals Ltd. [TSM-TSXV] has Ontario Geological Survey on historical reported assays from the first five drill holes drill holes on the property in the 1980s testing its 100%-owned Norra Karr REE- returned up to 3,200 ppm La+Ce+Nd. zirconium project in Sweden. Four of the Ucore Uranium Inc. [UCU-TSXV] has five drill holes intersected wide intervals released an update on detailed mineral- of REE-Zr mineralization from surface to ogical studies on surface and drill-core the depth of drilling, with two of the five samples from its Bokan Mountain REE drill holes terminating within mineraliza- project. The 100%-owned Bokan-Dotson tion. Results include 108.1 metres of 0.74% Ridge Project is located on Prince of Wales

TREO, 2.1% ZrO2 (zirconium oxide) with Island, southeast Alaska. A wide variety of 52% of the TREO being HREOs. This first rare earth element-bearing minerals were drill program discovered multiple intervals identified in the study. Ucore holds other of REE and Zr mineralization, with grades properties in Nunavut, Ontario, Labrador ranging up to 1.21% TREO and 3.5% ZrO2 and Newfoundland. n and mineralized thicknesses range up to

20 www.resourceworld.com APRIL 2010