Rare Earth News - Metals Place

Pacific Bay Minerals Ltd.: strong rare earth element assays released for Cueva del Chacho Uranium Property, Argentina

2010-02-09T19:26:44Z

Mr. David H. Brett, President and CEO, Pacific Bay Minerals Ltd. (the "Company" or "Pacific Bay"), reports soil and rock samples strongly anomalous in Rare Earth Elements ("REEs") from the Company's 100% owned Cueva del Chacho Property in La Rioja province, Argentina, with values up to 832 ppm Cerium and 338 ppm Lanthanum. A follow up program of sampling and mapping is planned for March 2010.

The strongly anomalous samples were taken in 2006 over zones of elevated radioactivity in an area of poor outcrop exposure during a uranium exploration reconnaissance program. Most of the radioactivity was determined to be caused by Thorium, but the two REE results included in the multi-element analysis package, Lanthanum and Cerium, were not reviewed at the time. In view of the newly increased interest in REEs, Pacific Bay is launching further investigation of the property.

The Cueva del Chacho property is located approximately 70 km south-southwest of the provincial capital city of La Rioja adjacent to a major paved road. The 3,000 hectare (11.5 sq mi) Cueva del Chacho property lies on-trend, 8 kms north of the Los Colorados Mine, on a regional sedimentary reduction-oxidation boundary where approximately 55,000 kg of uranium concentrates were produced from classic sedimentary roll-fronts between 1992 and 1996.

Significant REE assays:

Sample Cerium Lanthanum
-
SOIL ANOMALIES
SPS 22 832 338
SPS 9 300 124
SPS 1 381 183
ROCK SAMPLES
SPR 7 520 254
SPR 5 203 91

Vanadium continues to ride on the positive

2010-02-09T18:54:54Z

January 2010 can clearly be recorded in the books as a good month for vanadium and its associated alloys. The end of the month saw the price of ferro-vanadium ending up at US$ 6 per kg more than the opening price at the start of the month - from $24/$28 per kg to $26-$29 per kg.

Traders have explained the spurt as increased enquiries in this minor metal, leading, in turn, to a shortage in supply. February started off on a similar sentiment but towards the end of the first week, prices in almost all the 3 major markets have stabilised. The Asian markets, especially the Chinese, saw prices tail off as traders started winding down for the Chinese new year. European and the US markets, too, may not see much activity in the coming week.

The past week also saw some positive developments on the mining front. But before we get into that, as promised, here is an update on the political events in South Africa, where there is talk of nationalising its mines:

News agency Bloomberg reports that the youth wing of South Africa's ruling African National Congress (ANC) has been in contact with Anglo American Plc about its proposal to nationalize the country's mines. Quoting a ANC Youth League leader Julius Malema, the report says the league is more than convinced that the nationalization of mines would "happen in our lifetime," Malema told reporters after a weekend meeting to discuss the proposal. Malema is a member of the ANC's policy-making national executive committee.

South Africa is the world's biggest producer of platinum, ferrochrome, manganese and vanadium and the third-biggest supplier of gold. But Anglo American, one of the biggest investors in the South African mining business, has said any move by the government to "impair" the industry would have "serious economic costs", the report said. A company spokesman could not confirm nor deny whether whether the company has held talks with the league on the policy proposals.

In another dispatch on February 2, Bloomberg quoted South African Mines Minister Susan Shabangu as saying, "It won't nationalize mines in my lifetime." The same report carries on to say that traders, analysts as well as those in the actual business of mining in SA have, as of now, not shown any signs of panic by the treats of nationalization, perceived to be less of a risk to mining companies in South Africa.

At Vanadium investing news, we feel that nationalisation has its own set of problems but then again, it is the right of every nation to decide/change its policies to suit its own interests.

Speaking of SA, miningweekly.com reports from Johannesburg that Swiss-based diversified miner Xstrata that produces ferrochrome in a joint venture with Merafe Resources in South Africa, has reported that production had decreased by 30 per cent in 2009 compared to the previous year as a result of the venture's curtailment of up to 80 per cent of production capacity in late 2008 and early 2009, in response to the poor market conditions.

Ferrovanadium volumes fell by 37 per cent in 2009 owing to the suspension of production at Rhovan project - Xstrata's integrated vanadium operation in South Africa - during the third quarter for extended maintenance. The operation returned to full production in mid-October.

Moving on to other news… the past week saw the publication and announcements of several reports relating to several assays and initial surveys, most of them positive, likely to have an impact on vanadium prices.

Energizer Resources Inc (formerly Uranium Star Corp) (OTCBB: URST) announced that it had completed and filed its compliance technical report (SEDAR and EDGAR) for the explored portion of its Green Giant Vanadium Project in Madagascar.

The report was prepared by PEG Mining Consultants and confirmed that the exploration programs completed in 2008 and 2009 had established that at least two large-scale vanadium deposits exist on the Green Giant Property and that the Property merits an aggressive resource definition exploration program consisting of exploratory and infill diamond drilling over vanadium-bearing zones.

The company's recently reported and favourable assay results confirmed that the Manga zone has a high-grade core that is open along strike and at depth, and had been defined over a strike length of 500 metres. The 2010 drill program was expected to commence in May at the end of rainy season, and will focus on expanding the Manga zone over a strike length of 3,000 metres.

Energizer Resources Inc is an exploration company with assets in Madagascar (Vanadium) and Northern Quebec (Uranium).

Southern Uranium (ASX:SNU) has reported positive drill results as it found an outcropping of vanadium mineralisation at Calvert Hills in the Northern Territory. The Calvert Hills Joint Venture Project under tenement EL24837 is situated 100km west of the Westmoreland uranium field and has similar geological and structural ingredients for shallow-covered unconformity-style uranium deposits.

Southern Uranium has identified prospective locations similar to the Westmoreland setting but under cover by integrating modern geophysical techniques.

As previously reported, a four hole drill program was completed under collaborative drill funding from the NT Government at the end of the September Quarter.

The positive drill results encouraged the prospecting of similar geophysically delineated areas, resulting in the discovery of the Vanadis vanadium prospect.

Southern Uranium Limited is a listed resources company focused on copper gold and uranium exploration within its Australian tenements.

Cardero Resource Corp , listed on the Toronto Stock Exchange (CDU), as also on other stock exchanges, is commencing drill programs on both, its Longnose Iron-Titanium deposit and TiTac Iron-Titanium-Vanadium deposit, located in north-eastern Minnesota, USA. Previous work by BHP Minerals, a precursor to BHP Billiton (the world's largest mining conglomerate), had estimated that the Longnose deposit contained 27.57 million tonnes at 21.3 per cent titanium dioxide (TiO2).

This historical resource estimate is considered relevant by the company, both for the purposes of the company's decision to initially acquire the property and to guide the company in formulating its resource definition and exploration program for the project. The current drill program will seek to verify the historical resources and includes re-sampling, re-analysis and an independent NI 43-101 resource calculation, which will be completed by SRK Consulting (Canada) Inc.

Parallel with this work, planned metallurgical work will build on work previously completed by Pickands-Mather, Hazen Research and the Natural Resources Research Institute (NRRI). Results are anticipated by mid-2010.

A statement issues by the company said Cardero's focus through 2010 will be to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, the Baja district of Mexico and in Minnesota, USA, while continuing to progress its base and precious metal exploration projects in Argentina and Mexico and aggressively seek out and potentially acquire new advanced stage projects.

According to Marketwire, Apella Resources Inc (TSX VENTURE: APA) has reported that a further 1000 metres of diamond drilling on the Iron-t project had commenced. This program is a follow-up due to the positive findings from the previous round of drilling, results of which were released December 15, 2009.

Quoting Patrick D O'Brien, ICD.D, chairman, the report said Apella's recent mineralized drill intersects at Iron-T were suggestive of a significantly enriched Vanadium-Iron-Titanium system.

The Bell River Complex which hosts the Iron-t may be compared to the Lac Dore layered igneous complex (in part owned by Apella) in the Chibougamau district of Quebec, some 250 kms east, and to the Bushveld layered complex of South Africa, the world's most significant source of Vanadium.

At the Iron-T the Vanadium rich horizons are well defined on the ground and aeromagnetic surveys by their highly magnetic susceptibilities. Apella anticipates that at the Iron-T near Matagami the potential is excellent to substantially exceed the known mineralization of the Lac Dore deposit at Chibougamau of which Apella also controls a considerable interest.

Apella was in the news last week for another reason too. The company has been accepted as an associate member of the vanadium specific organization - The Vanadium International Technical Committee (VANITECH), headquartered in Kent, UK. VANITEC is a technical and scientific committee which brings together representatives of companies involved in the mining, processing and manufacture of vanadium-containing products for use mainly in the metals and materials manufacturing and chemical industries, world-wide.

Its objective is to promote the use of vanadium bearing materials and thereby to increase the consumption of vanadium. There are 16 current members of VANITEC.

Simmers mulls First Uranium options

2010-02-08T07:25:19Z

Simmer and Jack Mines said on Friday that it is currently considering the various options available to it protect and optimise the company's investment in First Uranium.

In a shareholder update, the mining group said that the board has established an investment committee, headed by Bernard Swanepoel,and comprising Ralph Havenstein, David Brown, Stuart Murray and Peter Surgey, to review Simmers' options with regard to its holding in First Uranium.

This follows disclosures by First Uranium on the Securities Exchange News Service (SENS) on 2 February 2010 regarding the change to First Uranium's production and capital schedule as a result of the withdrawal of an environmental permit to build a tailings storage facility at its Mine Waste Solutions project.

"The investment committee is currently considering the various options available to Simmers to protect and optimise the company's investment in First Uranium."

"It is worth noting that the board has mandated the investment committee to actively work with First Uranium in finding sustainable solutions to its funding and permitting problems and this has been communicated to the First Uranium board," Simmers said.

Simmers owns 37 percent in First Uranium.

Meanwhile, the group said that production at Buffelsfontein Gold Mines Limited, which currently produces around 92 percent of the company's gold, is in line with guidance provided in the Q2FY2010 Project and Production update released on SENS on 19 November 2009, while production at Tau Lekoa exceeded management's expectations.

Production at Transvaal Gold Mining Estates Limited however, was lower than expected due to excessive rainfall in the Mpumalanga region which impacted on leaching operations. - I-Net Bridge

Magnet Materials supply chain players propose six-point plan to address impending rare earths crisis

2010-02-08T06:48:35Z

The United States Magnet Materials Association, a coalition of companies representing domestic high performance magnet producers and suppliers, today submitted a proposal to the U.S. Departments of Commerce, Energy, State, and Defense, Office of the U.S. Trade Representative, and Office of Science and Technology Policy within the Executive Office of the President to create a "whole-of-government" approach to resolving the Rare Earth Elements (REE) supply crisis, a serious threat to the United States' economic and national security.

Today, the United States is totally dependent on foreign sources for rare earth materials. These elements are essential to numerous renewable energy and defense systems including wind turbines, hybrid-electric batteries, computer hard drives and precision-guided munitions. Currently, China provides over 97% of the world's rare earth raw materials and dominates the world's rare earth refining, alloying and manufacturing.

USMMA proposes the creation of an interagency working group, with high-level principals identified and empowered by the Secretaries of Commerce, Defense, Energy, State, the U.S. Trade Representative and the Executive Office of the President, charged with implementing a six-point plan to restore a domestic rare earth supply chain to meet economic and national security needs:

1. Establish a baseline - Studies by affected agencies to establish a baseline of rare earth usage and dependence and any economic or national security issues that result, as well as an action plan to restore specific holes in the domestic supply-chain, to include mining, refining, alloying and manufacturing [Note: many of these are ongoing]
2. Obtain raw material necessary to resume defense critical rare earth manufacturing in the face of a pending worldwide shortage - A program whereby the Defense National Stockpile purchases existing rare earth supply to support the US Government's critical needs while the domestic supply chain is rebuilt over the next 5 years
3. Government initiated action to ensure fair trade - A government initiated action to investigate potential foreign government market manipulation or dumping in the rare earth market, as a means of leveling the playing field for domestic competitors
4. Investment in a globally competitive rare earth supply-chain - A $2B DOE led grant and loan guarantee program to support the reestablishment of mining and refining operations in the US that will support the domestic supply-chain
5. Specific focus on defense critical components - Numerous Defense Production Act programs ($10-50M each) to support establishment of domestic manufacturing capability in critical segments of the rare earth market
6. Investment to ensure future innovation - Support of innovation, training and workforce development to support the rare earth element supply chain by providing base budget funding for academic institutions, government laboratories, companies, non-profits and industry associations

Currently, there is one United States rare earth mine and processing facility (which is not mining), a major United States Geological Survey-validated deposit of rare earths in Idaho, two small alloying facilities and one significant rare earth magnet producer, making the nation's supply-chain for critical renewable energy and defense systems nearly non-existent and leaving the United States dangerously vulnerable to potentially unreliable foreign nations.

USMMA believes that urgent and collective action is needed by the federal government in order to head off the impending rare earth crisis. It is estimated that Chinese domestic consumption of rare earth materials will outpace Chinese domestic supply as early as 2012. With a 3-5 year timeline to reestablish a domestic rare-earth supply-chain, the United States is already in a "silent crisis." It is unclear whether rare earth material will be available outside China in the coming years.

USMMA was founded in 2006 by magnet manufacturers Thomas & Skinner, Inc. of Indianapolis, Indiana; Hoosier Magnetics of Ogdensburg, New York; and Electron Energy Corporation of Landisville, Pennsylvania, to advocate on behalf of the specialty metals clause found at 10 U.S.C. 2533b. U.S. Rare Earths, Inc. joined in 2009 to expand the group's focus to support the reintroduction of a competitive rare earth supply chain in the United States.

Will we run out of uranium?

2010-02-08T02:09:48Z

There is strong evidence that a nuclear Renaissance is underway, and that the number of new reactors under construction, being planned, and under consideration is rapidly increasing. Brian Wang has pointed out in a private communication that present world Uranium mining capacity would be unable the demand for uranium. Brian was referring to a a situation that could arise with no change in reactor or mining technology during the next generation David MacKay tells us, A once-through one-gigawatt nuclear power station uses 162 tons per year of uranium. This calculation is based on the amount of U-235 extracted from uranium, and the burn rate of U-238 in Light Water Reactors. The U-238 burn rate refers to the amount of U-238 in reactor fuel, that is transformed into plutonium in the reactor, and plutonium will fission inside a reactor. Fast Breeder reactors are capable of converting almost all U-238 into plutonium. Some U-238 will fission aster absorbing a neutron so at least in theory fast breeders can convert close to 100% of their uranium into nuclear fuel. MacKay suggests that fast breeder reactors are

60-times-more-efficient

at burning uranium than Light Water Reactors. In fact, in a fast breeder, one ton of uranium is capable of producing 1 GW year of electricity in a fast reactor. Thus fast reactors are 162 times more efficient than light water reactors. This is the first of a number of strange calculation errors, which MacKay makes during his discussion of nuclear power.

MacKay appears to have short-shirked his research on uranium and thorium geology. MacKay, a physicists, simply ignores the writings of Alvin Weinberg, Harrison Brown, M. King Hurbert on the the nuclear fuel supply for breeder react0ors

Alvin Weinberg had published a visionary essay, "Energy as an Ultimate Raw Material, or Burning the Rocks and Burning the Sea," during 1959 in Physics Today (vol. 12, no. 11, p. 18).

As far back as 1943, Manhatten project scientists including Phil Morrison, Harrison Brown and Alvin Weinberg began to understand the energy implications of nuclear energy. Weinberg later wrote:

Phil Morrison could hardly contain his excitement as he showed me his calculations. If uranium were burned ion a breeder, the energy released through fission would exceed the amount of energy required to extract the residual 4 ppm of uranium from granitic rock.

Morrison's discovery was to have a profound impact on Weinberg for the rest of his long and illustrious career. Harrison Brown, another Manhattan project scientist, also contributed to Weinberg's vision. Brown, along with James Bonner and John Weir wrote "The Next Hundred Years", a book about future resources.

Weinberg was not alone. By the 1950's M. King Hubbert was talking about recovery of uranium and thorium from the rocks.

Hubbert reminds us,

When a U-235 atom is struck by a neutron, it breaks into fragments known as fission products which consist of other atoms near the middle of the table of atomic numbers, and also releases neutrons which strike other U-235 atoms, thereby maintaining a chain reaction. Each fission releases, on the average, 200-million electron volts of heat which, like the heat of combustion of coal or oil, can be used to drive a steam power plant.

The objections to the sole use of U-235 are its scarcity and the large amounts of energy required to separate it from U-238. Hence, very great importance attaches to the possibility of converting the fertile materials, U-238 and Th-232, into fissionable materials by means of the breeder reaction. The breeder reaction for U-238 is shown schematically in Figure 26. In this case, the neutrons from the fissioning of U-235 are used to cause a radioactive transformation of U-238 to Pu-239 which is then fissionable. By a similar reaction Th-232 can be converted to U-233 which is also fissionable. It has been experimentally demonstrated that both of these reactions are possible and are capable of producing from the fertile materials more fuel material than is consumed. Thus, in principle, by means of properly developed breeder reactors, it is possible to consume whole uranium and thorium. In the subsequent discussion it will be assumed that complete breeding will have become the standard practice within the comparatively near future.

Now for the energy that is released by the fissioning of a given amount of uranium (or thorium). As indicated in Table 2, the fissioning of 1 gram of U-235 releases 2.28 x 104 kw-hr of heat, which is equivalent to the heat of combustion of 3 tons of coal or of 13 barrels of oil. One pound of U-235 is equivalent to 1400 tons of coal or 6000 barrels of oil. Within narrow limits the same values are valid for U-238 and for thorium.

Then Hubbert points to the magnitude of the uranium resource:

the so-called "low-grade" ores are the phosphate rocks and the black shales which have uranium contents in the range of 10 to 300 and 10 to 100 grams per metric ton, respectively. Even so, such rocks are equivalent to 90 to 900 tons of coal or 390 to 3900 barrels of oil per metric ton for the phosphates, and to 30 to 300 tons of coal or 130 to 1300 barrels of oil per metric ton of rock, for the black shales. Even granite, as has been pointed out by Harrison Brown (1954) and by Brown and Silver (1955), contains about 13 grams of thorium and 4 grams of uranium per ton, which is equivalent to about 50 tons of coal or 220 barrels of petroleum per metric ton of granite.

What quantity of uranium in rocks of these various types may there be? An indication of the order of magnitude may be obtained by a glance at the map in Figure 28. The Colorado plateau, which is the principal producer of the high-grade ores, has an estimated ultimate reserve of the order of 50>000 to 100,000 metric tons of uranium. The large supplies, however, are to be found in the so-called "low-grade" ores of the phosphate rocks and he black shales. The Phosphoria formation alone, it is estimated from a recent paper by McKelvey and Carswell (1955), contains about ?400 million tons of uranium. Another 0.5 million tons, at least, can be obtained from the phosphate rocks of Florida and the neighboring states.

The Chattanooga shale in Tennessee contains a stratum, the Gassaway member, about 5 meters thick whose average content of uranium is about 70 grams per metric ton (Kerr, 1955). With a density of 2.5 metric tons per cubic meter, this would amount to about 175 grams of uranium per cubic meter, or to 875 grams per square meter for the total thickness of the member. Then for an area of a square mile the uranium content of this member would be 2.3 X 109 grams or 2300 metric tons. This does not sound impressive, and in fact, as compared with contents of the more familiar metallic ores, it is a trifling amount; nevertheless, the energy content of this member per square mile is equivalent to 30 billion barrels of oil, or to five East Texas oil fields. Uranium-rich black shales of Devonian-Mississippian age, which correlate with the Chattanooga, are widespread in the Mid-Continent area as well as in Tennessee and the neighboring states. In addition, the Sharon Springs member of the Pierre shale of Cretaceous age occurring in an extensive area of North and South Dakota east of the Black Hills is also rich in uranium. No attempt has been made to determine the amount of minable uranium which these shales must contain, but since their areal extent amounts to several hundred thousands of square miles, their uranium content would appear to be as much as several hundred million metric tons.

Although Hubbert had very little to say about the magnatude of Thorium resources, They can only be described as magnificent. WASH-1097 reported the United States Uranium and Thorium resources. Note that while Hubbert said little of thorium, WASH-1097 reported that for five hundred 1969 dollars a pound, the United States Thorium reserve amounted to three billion tons:
Clearly then if there are enormous amounts of recoverable uranium and thorium in so called low grade ores around the world. The USAEC's estimated $500 in 1969 would be $2900. 45 tons of Southern Appalachian coal cost about $2900 during the winter of 2009. One pound of thorium or in a LFTR or uranium in an IFR would produce the energy equivalent of 1400 tons of coal. Thus the AEC's estimate of a 3 billion ton thorium and a 2 billion ton uranium reserve was based on a recovery cost for thorium that was only 3% of the current cost of coal. If the recovery price for thorium at concentrations of no more than 50 PPM would be 3% of the recovery price for coal. An enormous amount of uranium would also be recoverable at highly attractive prices as an adjunct to the recovery of very low grade mineral ore. For example, gamma ray readings form 131 Fort Worth gas wells indicated a uranium concentration of from 10 to 30 ppm in the enormous Barnett Shale formation. Researchers have suggested that the Barnett Shale formation also contains a rich supply of phosphate. Thus the co-recovery of phosphate and uranium from Barnett Shale seems possible, with more than acceptable EROEI (energy return on energy invested) levels. Research on the the huge Marcellus Shale gas field, which covers Eastern Ohio, all of West Virginia, and much of Pennsylvania, and extends into the Southern half of New York State, suggests a potentially huge Uranium and Thorium resource.

Six test cores drilled in Wetzel County, WV during the 1970's found a consistent presence of 7 or 8 ppm of thorium. Two cores returned about 2.5 ppm of uranium, but two others contained 38 PPM, a fifth contained 58 ppm, and a sixth contained 26 ppm. Radon gas emissions from soil over Marcesllus shale in Ohio and New York states, are consistent with the presence of large ammounts of Uranium and Thorium. The Kentucky Geological Society reported.

Although Hutchins (1971) reported numerous other uranium anomalies in eastern Kentucky, no significant exploration has been conducted to examine the uranium in this part of the state. This deposit fits the classic geologic model for sedimentary uranium deposits, similar to deposits in Colorado and Wyoming. The origin of the Bell Falls uranium is probably related to deeper groundwater in eastern Kentucky, which had been in contact with subsurface black shale, migrated upward, and formed a reducing environment in the coal fragments and conglomerate to deposit the uranium.

Scientists have postulated since 1943 that an enormous amount of energy from supposibly low grade Thorium and Uranium ores, at acceptable EROEI levels. The recovery of large amounts of nuclear raw materials including uranium and thorium appears possible with favorable EROEI. It would also appear that latge amounts of supposably rare minerals such as phosphate are also present along with thorium and uranium in riock formations such as the Barnett shale formation of North Texas. The potential to co-recover these minerals should receive furthr investigation.

Recoverable Uranium and Thorium in shale deposits world wide, have received only limited investigation, but potential resources appear to be enormous. For example, a USGS report states,

The uranium resources of the Alum Shale of Sweden, although low grade, are enormous. In the Ranstad area of Västergötland, for example, the uranium content of a 3.6-m-thick zone in the upper part of the formation reaches 306 ppm, and concentrations reach 2,000 to 5,000 ppm in small black coal-like lenses of hydrocarbon (kolm) that are scattered through the zone.

The Alum Shale in the Ranstad area underlies about 490 km2, of which the upper member, 8 to 9 m thick, contains an estimated 1.7 million tons of uranium metal (Andersson and others, 1985, their table 4).

A report from Aura Energy states

• Aura Energy has made applications for a significant landholding in the major Alum Shale uranium province of Sweden.
• The Alum Shale contains substantial resources of uranium and other metals.
• 77 million pounds of uranium in inferred resources have been identified within 1400 metres of one of Aura's applications.
• Extensive exploration by the Swedish Geological Survey (SGU) indicates the mineralised Alum Shale extends into all of the Aura application areas. Aura therefore interprets that considerable quantities of uranium are present within its applications.
• The Alum Shale has been mined for uranium in both Sweden and Estonia.

David MacKay does not list Sweden among the ten top nations with Uranium resources, and indicates a resource of a little over one million tons of uranium for Australia, which MacKay indicated held the worlds largest Uranium reserve.

MacKay does recognized some uranium resources that can be drawn on, for example the estimated 22, million tons of uranium in mineable phosphate deposits and in phosphate mine tailings, and the 4 or so billion tons of potentially recoverable uranium in sea water. Research has shown that uranium is recoverable from sea water with low costs and very favorable energy return for the amount of energy invested in the recovery. MacKay argues that uranium recovery from sea might be possible, and acknowledges

maybe more mineable uranium will be discovered. Indeed, one
paper published in 1980 estimated that the low-grade uranium resource is more than 1000 times greater than the 27 million tons we just assumed.

If uranium in sea water were to be recoverable, this should be sufficient to provide all the energy the world needs for a very long time. in addition uranium recovery rates from the sea are sustainable practically forever for as MacKay acknowledges,

The uranium in the oceans is being topped up by rivers, which deliver
uranium at a rate of 32 000 tons per year.

But something is very long with MacKay's calculations.

If 10% of this influx were captured, it would provide enough fuel for 20 GW of once-through reactors, or 1200 GW of fast breeder reactors.

First the 32,000 tons should be a sustainable recovery rate. If 32,000 tons of uranium are being added to the sea every year, that 32,000 tons should be mineable without diminishing the concentration of uranium in the sea. Thus the 32,000 tons is sustainable over the long hall. How much energy is recoverable from this? MacKay calculates 1200 GWs, but as has been noted, MeKay under estimates the amount of electricity that is recoverable from fast breeders. In fact the breeder conversion rate is potentially better than McKay suggested, and even his 10% would produce 3200 GW years of electricity per year. If the sustainable uranium mining rate is from sea water is 32,000 tons, then we have an annual electrical output of 32,000 GW years. That gives us a sustainable output of 133 kW years per person on the planet, just from the uranium that flows into the sea.

Is this another cargo cult? Even MacKay observes,

a sustainable figure that beats current consumption! – but only with the joint help of two technologies that are respectively scarcely-developed and unfashionable: ocean extraction of uranium, and fast breeder reactors.

There is no great technological hurdle to the development of either the fast breeder or to low cost, sustainable uranium extraction from see water, and if these options are unfashionable we have options that might prove more more attractive. Thorium is several times more abundant than uranium, and is mineable with favorable rates of energy returns. The Liquid Fluoride Thorium Reactor (LFTR), a thermal reactor, is capable of breeding thorium, would cost less than fast breeders or light water reactors, is more rapidly scalable, is safer, and would largely solve the problem of nuclear waste. Once the potentials of the LFTR is clearly understood, the nuclear option is likely to grow far more fashionable.

Thus Alvin Weinberg's vision can be realize and has huge implications as he later explained:

In this essay we speculated on the very long-range future-hundreds, even thousands, of years in the future. Where will our energy come from at that distant time when coal, oil, and natural gas have been used up? Solar energy is one obvious inexhaustible source. Another, if it works, could be controlled thermonuclear energy based on deuterium from the sea (thus "Burning the Sea"). My main point, however, was to stress what Phil Morrison and then Harrison Brown had already noticed: that the residual and all but infinite uranium and thorium in granite rocks could be burned with an energy yield larger than the energy required to mine and refine the ore—but only if breeders, which could burn nearly all the fertile material, are used. "Burning the Rocks": the breeder, no less than controlled fusion, is an inexhaustible energy system. Up till then we had thought that breeders, burning 50% instead of 2% of the uranium, extended the energy derivable from fission "only" 25-fold. But, because the breeder uses its raw material so efficiently, one can afford to utilize much more expensive—that is, dilute—ores, and these are practically inexhaustible. The breeder indeed will allow humankind to "Burn the Rocks" to achieve inexhaustible energy!

In his autobiography Weinberg confessed:

"I became obsessed with the idea that humankind's whole future depended on the breeder. For Society generally to achieve and maintain a standard of living of today's developed countries, depends on the avaliability of relatively cheap, inexhaustible sources of energy."

In 1969 as ORNL was, under orders from the USAEC, winding down its brilliantly successful Molten Salt Reactor Experiment, Alvin Weinberg wrote,

The achievement of a cheap, reliable, and safe breeder remains the primary task of the nuclear energy community. Actually not much has changed in this regard in 25 years. Even during World War II, many people realized that the breeder was central. It is only now, with burner reactors doing so well, that the world generally has mobilized around the great aim of the breeder.

As all readers of Nuclear Applications & Technology know, the prevailing view holds that the LMFBR (Liquid sodium cooled fast breeder) is the proper path to ubiquitous, permanent energy. It is no secret that we, as well as many of our colleagues at ORNL, have always felt differently. When the idea of the breeder was first suggested in 1943, the rapid and efficient recycle of the partially spent core was regarded as the main problem. Nothing that has happened in the ensuing quarter-century has fundamentally changed this. The successful breeder will be the one that can deal with the spent core most rationally—either by achieving extremely long burnup, or by greatly simplifying the entire recycle step. We at Oak Ridge have always been intrigued by this latter possibility. It explains our long commitment to liquid-fuelled reactors-first, the aqueous homogeneous and now, the molten salt. groups working vigorously on molten salts outside Oak Ridge. . . .

. . . indeed, the enthusiasm displayed here is no longer confined to Oak Ridge. There are now several groups working vigorously on molten salts outside Oak Ridge. The enthusiasm of these groups is not confined to MSRE, nor even to the molten-salt breeder. For we now realize that molten-salt reactors comprise an entire spectrum of embodiments that parallels the more conventional solid-fuelled systems. Thus molten-salt reactors can be converters as well as breeders; and they can be fuelled with either 239Pu or 233U or 235U.

However, we are aware that many difficulties remain, especially before the most advanced embodiment, the Molten-Salt Breeder, becomes a reality. Not all of these difficulties are technical. We have faith that with continued enlightened support of the US Atomic Energy Commission, and with the open-minded, sympathetic attention of the nuclear community . . . the molten-salt reactors will find an important niche in the unfolding nuclear energy enterprise.

Metals prices heading for the roof

2010-02-08T01:19:06Z

Speakers at the Mining Indaba in Cape Town this week seemed as one in warning of a near-term supply-demand squeeze and some solid price increases for a swathe of metals.
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They made the point that China and India will be central to minerals demand growth. And among the so-called rare-earth metals that are crucial to many of today's high-tech products, China is the leading producer and is curbing exports unless they are already processed into manufactured products. As consultant Jack Lifton saw it, stronger demand has not (and cannot) lead to greater production.

Many of the metals that are needed for items such as solar panels, super-conductors and jet engines are produced as by-products of lead, zinc, copper, manganese or aluminium mining. There is no chance of increasing production of indium, gallium, germanium, rhenium, thorium and tellurium from primary mines.

It is not the same for copper, the metal showing the second-highest price increase over the past year - lead was first and zinc third. These are metals that better reflect the state of demand in the real economy.

Chinese demand is growing and, there are supply constraints. New mines cannot be brought on stream at the flick of a switch. Iron ore is in much the same boat. Price rises will be far more restrained than they were a year or two ago.

Minmetals on the prowl for more overseas, domestic buys

2010-02-08T01:01:16Z

Metals trader China Minmetals Corp yesterday said it expects better fortunes this year on the back of double-digit growth fueled by more overseas and domestic mergers and acquisitions (M&As).

Zhou Zhongshu, president of Minmetals, said revenue for this year may go up by 20 percent.

The company's revenue dipped 4 percent last year to 173 billion yuan from 181 billion yuan in 2008, as the global economic crisis dampened commodity prices.

Profit slumped nearly 50 percent in 2009 to 3.15 billion yuan.

"Minmetals will take advantage of the opportunities arising from due to the restructuring of State-owned enterprises (SOEs)," said Zhou.

The central government is encouraging M&As among SOEs to build larger and more competitive Chinese enterprises.

The State-owned Assets Supervision and Administration Commission announced in January that the number of China's central SOEs would be streamlined at 80 to 100 from the current 129 by the end of this year.

Zhou said Minmetals would also look increasing to overseas acquisitions to help grow into a globally competitive mining group.

"The overseas subsidiary Minerals and Metals Group (MMG) will serve as an international investment platform," said Zhou. "We will continue monitoring mining assets and deals at low costs."

The company paid $1.39 billion for zinc producer OZ Minerals in June 2009 to expand its presence in Australia.

In spite of the revenue decline due to lower commodity prices, the company's assets grew 136 percent as it successfully acquired several domestic and overseas mining assets.

Minmetals holds a majority stake in Hunan Nonferrous Metals Holding Group after increasing its stake in the Hong Kong-listed miner to 51 percent.

The company also acquired two SOEs, Changsha Research Institute of Mining & Metallurgy (CRIMM) and Luzhong Metallurgy & Mining Group. In September, Minmetals took over five subsidiaries of the bankrupt Ferrochina Ltd.

Zhou also said the company would diversify into nonferrous metals resources.

"We aim to be the world's largest rare earth supplier, and a leading lead and zinc producer, as well as a global supplier of tungsten and antimony," he said.

Nortec Minerals Corp.: Rock chip sample returns 69.8g/t gold from Seinajoki Project, Finland

2010-02-05T06:25:14Z

Nortec Minerals Corp. is pleased to announce the excellent results from rock chip samples taken from the Seinajoki Gold Project in December last year.

High grade gold mineralisation was encountered in two lines of rock chip samples taken from outcropping bedrock on the Sikakangas prospect. A 0.5m chip line returned 69.8g/t gold hosted in quartz veins within altered metavolcanic rocks (mica gneiss). A second sample taken 25m to the south, returned 21.1g/t gold also hosted in quartz veins within altered mica gneiss.

Ian F. Laurent, Nortec's Executive VP commented, "We are very excited at these results. We are looking forward to drill testing these targets. We have always believed that Seinajoki has the potential to become a multi-million ounce gold district."

Nortec conducted a reconnaissance surface sampling programme over several prospects identified within the 10,000 hectare claim reservation covering the Seinajoki Gold Project. A total of 29 rock chip samples were collected from the Sikakangas, Marttalanniemi, Kalliosalo and Kaatiala prospects during a field visit by Nortec. The samples collected were representative of the several styles of mineralisation already identified within the Seinajoki Project, including:

1. Native GOLD in dacitic to rhyodacitic metavolcanic rocks and graphitic schists, associated with native antimony, minor arsenopyrite and pyrrhotite;
2. Disseminated stratabound antimony-gold mineralization associated with shear zones in metasediments;
3. Native GOLD in quartz-tourmaline veins in metavolcanic rocks;
4. Antimony mineralization in pegmatites and metavolcanic rocks; and,
5. Tin, tungsten, lithium, tantalum, beryllium, niobium and other REE mineralization in pegmatite dykes.

Anomalous gold mineralisation (>0.2g/t) was also returned from rock chip samples at the Marttalanniemi and Kalliosalo prospects. Both prospects lie along a 5km long, northwest trending "Shear Zone". One rock chip sample from the pegmatite dyke at Kalliosalo returned lithium mineralisation (1.47% Li) and another rock chip sample from the southern part of Marttalanniemi returned elevated values (0.04%) in rare earth elements ("REE").

The Company has already begun staking claims in the Seinajoki district and will complete staking the most prospective areas before the end of February. The Company has begun discussions with drill contractors in Finland with the aim of commissioning an initial small exploration drill programme targeting these high grade gold zones identified on surface.

Rand Uranium plans R3.5bn project

2010-02-05T01:22:26Z

Rand Uranium, the unlisted venture held by funds and Harmony Gold, plans to build a R3.5bn uranium project to supply up to 2.5 million pounds of U3O8 from 2013 and could increase that four times if it has the feedstock, said CEO John Munro.

Rand Uranium incorporates three operating gold mines and a tailings dump with the richest source of surface uranium on South Africa's western gold fields, Munro said. It plans to take 30 months to build a plant starting in the second half of this year.

It is working carefully on securing permits for new deposition sites to avoid the pitfalls have encountered, he said.

Funding will come from issuing equity to a strategic partner, debt and using its gold output as a source of capital. The plant will be commissioned in late 2012 and ramp up to full production during 2013.

The Cooke mine and dump were owned by Harmony Gold which vended the assets into the newly formed Rand Uranium in exchange for $209m cash and a stake in the company. Harmony owns 40% of the group and funds the remainder.

Rand Uranium produces 220,000 oz of gold a year, providing a source of cash. Munro said having the operating mine and plant infrastructure is one of the major factors setting Rand Uranium apart from other companies venturing into uranium production.

The mine is working and relatively shallow, unlike many companies which have to either sink a mine or revive an old mine, said Munro, who used to head up Gold Fields' international business division. It also has a large tailings dump with 200 grams/tonne (g/t) of U3O8 and 0.3 g/t of gold, which will give a nice little sweetener to the project.

The tailings dump will supply 90% of the feed to the uranium plant, with underground workings the remainder as Rand Uranium moves into areas with a higher grade of uranium than it is currently mining. The underground grade is 400 g/t, he said, which will be blended with surface material.

Some of these higher grade areas have already been pre-developed by Harmony and the shallowness of the mine - 600 to 800 metres below surface - means these tunnels have not deteriorated, he said.

The plant will be designed with a capacity to treat 5.4 million tonnes of material a year and space will be left to double capacity to 10.8 million tonnes/year depending on whether Rand Uranium can source the feedstock from an estimated two billion tonnes of tailings in an 80km radius, and which are owned by other mining companies.

There is a potential for the area to supply seven to ten million pounds a year of U3O8, Munro said.

Gold Fields has tailings with a relatively high grade of uranium too and it is advancing feasibility study work and environmental studies into creating what CEO Nick Holland has called Gold Fields' fifth South African mine.

Other companies are unlikely to build their own uranium treatment plants and this is where Rand Uranium sees its growth by offering to treat tailings.

The most important aspect of the project is securing deposition sites. First Uranium, which has a surface treatment project, has run afoul of permitting and has forced it to suspend the construction and commissioning of the third gold plant at its subsidiary Mine Waste Solution and reduce production from two gold plants to one gold plant at the end of March this year.

Rand Uranium has a brown field deposition site that can take seven years' worth of material and it is working on securing a permit for a green field site. "The social side of this process is absolutely critical," said Munro.

Golden Share acquires lutetium REE property in Central Quebec, Canada

2010-02-04T21:28:24Z

Golden Share Mining Corporation is pleased to announce the acquisition by map staking of the Lutetium Property, located in central Quebec, Canada.

The property, located in the Maniwaki area, consists in 23 claims for a total surface area of 13.7 km2 and is directly accessible by road.

REE mineralization is reported over an area of 1,000 m by 300 m with grades of up to 1.32% Total Rare Earth Elements ("TREE") obtained from historical surface sampling with individual assays showing the presence of several important heavy rare metals ("HREE").

Lutetium, reportedly the highest price REE, is reported with grades of up to 87.6 ppm (g/t). Lutetium is used in some nuclear applications, in experimental nuclear medicine and also as a catalyst for cracking hydrocarbon chains in petroleum refineries. Samarium, which is increasingly used for high power magnets, is reported with grades up to 618 ppm (g/t).

Reported assays for other HREE include Terbium (Tb - 70 ppm (g/t)) and Ytterbium (Yb - 531 ppm (g/t)) while reported LREE include Cerium (Ce - 7 550 ppm (g/t)) and Lanthanum (La - 4 330 ppm (g/t)).

The REE occurrence is located at the contact between metasediments and migmatites, a geological environment favourable for the concentration of pegmatites and the deposition of REE. Several syenite intrusive bodies have been identified in the vicinity of the Lutetium property and, given the enrichment of peralcaline syenites in HREE, these syenites could act as reservoirs for REE.

Philippe Giaro, President and CEO, stated "The Lutetium property attracted our attention during an extensive geological review of Quebec conducted in the fall of 2009. We believe that given the presence of HREE and current market trends this acquisition adds value to our portfolio for a minimal cost. While Golden Share intends to provide its shareholders with special opportunities when justified, the Company remains focused on its core business which consists in the development of its gold properties through the delineation of gold resources on its Forsan and Pistol Lake projects and the continued exploration of its Malatric Lakeshore and Elwood projects."

Mapping and sampling work will be executed on the Lutetium property as soon as weather permits. In the shorter term, and as announced by press release on January 12th, Golden Share is currently executing a NI 43-101 compliant resource calculation on the JF West Zone of the Pistol Lake gold project which is expected to be finalized by March 2010.

Nuinsco receives further positive test results from Prairie Lake project

2010-02-04T21:06:22Z

Nuinsco Resources Limited announced today that results of ongoing work at its 100% owned Prairie Lake Project in northwestern Ontario continue to be very positive. A round of tests using low-cost flotation methods show that it is possible to produce a concentrate grading up to 23.4% phosphorous (P2O5), which is used in high-value fertilizers. The concentrate also contains 0.17%, or 1.7kg/tonne, niobium (Nb2O5) which is used in steel alloys, superconducting magnets and the aerospace industry, as well as rare earth elements (REEs).

"The results from these flotation tests, combined with the positive dense media and magnetic separation tests announced in October 2009 and the 330-360 million tonne Exploration Target Mineralization Inventory ("ETMI"), announced earlier this month all add to the potential economic significance of the Prairie Lake deposit," said Paul Jones, President. "The in-situ niobium alone is conservatively valued at US$53.00/tonne (in August 2009, Resource World Magazine quoted niobium prices at US$19.75-US$23/lb). Further, the Prairie Lake project is easily accessible, exploitable by open pit or quarry methods and close to existing rail, road and shipping infrastructure setting the deposit apart from other projects targeting similar mineralization."

The current round of flotation tests was conducted by COREM, a research laboratory located in Quebec City. Test feed material was of average grade and included a lithologically representative suite of all major rock types. There continues to be excellent potential to optimize the metallurgical tests specifically to the Prairie Lake mineralization and to increase the ETMI through drilling, as only 12% of the Prairie Lake Intrusive Complex's surface area has been tested. The Company is developing a budget for the next phase of exploration to follow up on these extremely positive results.

Demand for rare earths up

2010-02-04T01:32:51Z

Demand for rare-earth metals was increasing "exponentially", primarily driven by demand for new technology, independent consultant and commentator Jack Lifton said on Monday.

He told delegates attending the 2010 Mining Indaba in Cape Town that 2010 was already shaping up as the year of rare metals.

Rare-earth metals are critical technology metals used in the manufacturing of hybrid cars, super alloys used in the defence industry, cellphones, large wind turbines, missiles and computer monitors.

Lifton said that rare-earth metals were the "newest great interest" amongst investors, primarily the result of growing demand.

The demand for rare-earth metals had resulted in a significant increase in the number of junior miners.

In the last year alone, Lifton stated that more than 100 junior miners have announced over 150 different rare-earth mining plays.

These were just the private ventures that have gone public as initial public offerings, or have changed the direction of their existing listed entity, to take into account rare earth "discoveries" or acquisitions.

Interestingly, Lifton noted that the rising demand had not increased supply.

The probability of an actual supply increase is dependent on at least a dozen variables, none of which had to do with the share price of the junior miner being analysed, he said.

The supply of rare earths during the next decade, could only be maintained and increased by those which were already producing rare earths, or those that had produced them before and could reactivate their mines, or miners that had been developing good properties for many years already.

Significantly, Lifton predicted that there would be no increase in rare-earth metal production outside China. The Asian giant currently accounted for 95% of rare earth-metal production.

Northern Uranium discovers prized heavy rare earth elements

2010-02-04T01:16:54Z

Northern Uranium has followed up December discoveries of significant rare earth elements targets at its 100%-owned Gardiner-Tanami project, with today's news of high concentration of heavy rare earth elements (HREE) in the mineralisation.

Heavy REE's have a significantly higher market value on a per pound basis than the more common light REE's.

NTU identified unusually high concentrations of HREE in hydrothermal quartz-xenotime mineralisation in the Browns Range Dome area at Gardiner-Tanami.

NTU has targeted rare earths exploration as a significant focus in 2010 at at the Gardiner-Tanami project, bordering the Northern Territory and Western Australia, in tandem with the company's core uranium project.

The results of an age-dating study pointed to the possibility of large scale HREE ore-deposit potential in the area.

The company's HREE discovery represents an interesting value-adding component for NTU investors and shareholders.

Executive chairman Kevin Schultz said that a further study of the HREE bearing mineralisation at the company's tenements showed that at current REE prices it has extremely high in-ground value.

In fact, analysis to date indicated it has an estimated in-ground value of US$1,270 per tonne.

Xenotime (a yttrium and rare earths bearing phosphate mineral) was first identified in the western Browns Range Dome area in the 1980s by Japanese nuclear energy organization PNC Exploration while exploring for uranium.

PNC named the area of quartz-xenotime mineralisation “Area 5 Prospect” and one of the larger quartz-xenotime veins gave extremely high grade results up to 16% yttrium, 0.2% uranium, 0.5% light Rare Earth Elements (LREE) and 12% HREE.

Then in 2009, previously unknown quartz-xenotime mineralisation was encountered by NTU - 4km to the northnortheast of Area 5 Prospect during Northern Uranium’s uranium exploration program.

These newly discovered hydrothermal xenotime-quartz stockworks, referred to as “NNE Prospect”, are similar to the Area 5 occurrences. Xenotime concentration was recorded as being up to 3-4 wt-%.

Interestingly, the rare earths and Yttrium distribution from assay results of the quartzxenotime mineralisation at NNE Prospect at typical current market prices for rare earth metals, demonstrates NTU's HREE's at Browns Range compares favourably with other major global REE deposits.

The Browns Range Dome area could conceivably become an important new province for highgrade Yttrium-HREE mineralisation.

NTU will proceed with the HREE exploration program, in conjunction with the 2010 uranium exploration programme including review and re-processing of airborne mapping data and airborne radiometrics.

An extensive rare earths target zone has been identified by NTU at the project.

USGS ranks rare earth deposit

2010-02-04T01:14:17Z

U.S. Rare Earths, Inc., a privately owned company, announced today that its rare earth element deposits in Idaho and Montana were listed as among the nation's most important domestic deposits in the annual listing of the worldwide distribution of rare earth element deposits, produced by the U.S. Geological Survey (USGS), the federal government's scientific fact-finding agency covering natural resources.

"The Diamond Creek property is not only the most undeveloped rare earth resource in North America today, it is also highly accessible for mining and is located in Idaho, which is a mining-friendly state."

U.S. Rare Earths' Chief Executive Officer Edward Cowle explained that rare earth elements have become increasingly common in high technology equipment including:

* computer hard drives and cellular phones
* MRI machines
* environmental products such as electric cars, wind turbines and solar panels
* military weapons, including the electronic controls and electric motors used in missiles

U.S.-based production for these important manufacturing and military applications may be in jeopardy because China currently supplies the majority of rare earth elements that are used in these applications.

According to James Hedrick, former USGS rare earths commodity specialist, the world currently has only one principal source of these elements, the People's Republic of China. However, China recently indicated it is considering stopping the export of the heavy rare earths, which are the specific critical metals for producing high temperature-operating permanent magnets.

"Even the possibility of such a supply interruption," he added, "has already caused a crisis that has highlighted our dependence for the security of our supply of the heavy rare earths on an economic competitor."

In addition, Hedrick said, "U.S. Rare Earths' analytical data indicates that it is the only domestic resource that has significant heavy rare earths."

The U.S. Rare Earths properties include:

* Diamond Creek, in southeast Idaho's Webster Range;
* and a 600-acre site in the Lehmi Pass, at an elevation of about 7,200 feet on the Continental Divide, between Idaho and the Bitterroot Range of Montana.

According to the company's data accepted by the USGS in a study released last September, U.S. Rare Earths' holdings show high concentrations of individual rare earths of both the yttrium-heavy rare earths group and the cerium-light rare earths group. They were measured with approximate concentrations of yttrium occurring as high as 0.36%, cerium measured approximately 2%, lanthanum approximately 1%, neodymium as high as 1.4%, praseodymium as high as 0.30%, samarium as high as 0.38%, europium as high as 0.08%, gadolinium as high as 0.20%, terbium as high as 0.03%, and dysprosium as high as 0.11%.

Mountain Pass, in California's Mojave Desert on the Nevada border, was a major source of rare earth elements and in the recent past made the United States largely self sufficient in these essential elements. However, in 2002, Mountain Pass production ceased. Currently, Mountain Pass refines only concentrates remaining from its last mining production in 2002.

China has-as does Diamond Creek and Lemhi Pass-two heavy rare earths that are in particularly short supply: dysprosium and terbium. These "heavy" rare earth elements have critical uses, ones for which there are few substitutes.

* Dysprosium is used in magnets in electric motors.
* Terbium and other rare earths help cut the electric usage of lighting by about 80 percent.

China-as well as Diamond Creek and Lemhi Pass-also contain another of the rare earth metals in particular demand: neodymium.

In 1982, a General Motors corporate division, which has since been sold and relocated to China, discovered a neodymium alloy that constituted the light, tough, cost-effective permanent magnet which replaced heavy magnetized iron in electric motor applications. Since the sale to the Chinese, these rare-earth magnets have no longer been produced in the USA. The entire supply chain is now in the People's Republic of China.

Both of China's rare earth areas-its Bayan Obo mines at the northern part of Inner Mongolia and its southern ionic-clay mines in southeastern China-are known for their significant quantities of ore.

Jack Lifton, a leading mineral resource analyst, and editor of the Jack Lifton Report, said: "The Diamond Creek property is not only the most undeveloped rare earth resource in North America today, it is also highly accessible for mining and is located in Idaho, which is a mining-friendly state."

Rare earth elements have much less tendency to become concentrated in exploitable ore deposits. Consequently most of the world's supply comes from only a few sources.

Edward Cowle said: "U.S. Rare Earths is the only large rare earth venture in the United States that has accessible and mineable supplies of the strategic heavy rare earths. Our deposits could supply the current and projected demand of the United States military and civilian green industries and would eliminate the dependence the United States currently has on Chinese sources."

Toro Energy to get approval on its Wiluna uranium project

2010-02-04T00:33:31Z

Emerging uranium explorer Toro Energy has received advice from the Western Australian Government finalising how the Company's advanced Wiluna uranium project will be assessed for environmental approvals.

Western Australia's Minister for Environment Hon Donna Faragher has dismissed the single only appeal against the level of environmental assessment protocols for Wiluna as set by the Environmental Protection Authority.

The EPA had set the level of assessment as an Environmental Review and Management Program and this has now been confirmed by the Minister.

In dismissing the appeal against the level of assessment, the Minister has set a period of 14 weeks for public exhibition of the ERMP.

The Federal Government had previously advised Toro that the Wiluna project is a nuclear action requiring assessment under the Environment Protection and Biodiversity Conservation Act and that it will be dealt with under the bi-lateral agreement with the Western Australian Government.

Toro Managing Director, Mr Greg Hall, said that the Western Australian Environment Minister's decision completed the project referral stage of the environmental assessment and approvals process for Wiluna.

The State Government last month granted approval for a resource evaluation test pit at Wiluna. That work will commence next month and over a six week period, see about 45,000 tonnes of ore and barren material removed, sampled for various geological and other test purposes, and then returned to site with the area then fully rehabilitated.

Mr Hall welcomed the decision, saying Toro would now prepare an Environmental Scoping Document which would determine the content of the ERMP.

"We plan to have the ERMP available for public exhibition in the second half of 2010 in keeping with our project schedule for planned first production to commence by early 2013," Mr Hall said.

"At the Wiluna project site, work will commence soon on the previously approved trial pit, and Toro will be lodging a mining proposal with the Western Australian Department of Mines and Petroleum to undertake a heap leach trial to enable further feasibility review of ore processing options."

Toro recently raised A$61 million to further fund the advancement, approvals and feasibility processes for its Wiluna project, 30 kilometres south of Wiluna, along with exploration work and corporate initiatives.

Rare Earth Metals Inc to commence a 10km drill program in northern Ontario

2010-02-03T02:14:07Z

Rare Earth Metals Inc. is pleased to announce that a 10,000 meter drill program has commenced on the Clay-Howells magnetite prospect in northern Ontario and the initial hole has been completed. A preliminary examination of the core indicates the targeted magnetite zone was intersected between 35.5 meters and 178.0 meters and is characterized by alternating bands of massive magnetite and heavily disseminated magnetite. The hole is in the process of being logged and the mineralized section will be split and sent for analysis. Previous analysis of historic drill core from the magnetite zones has shown encouraging results in REE, Niobium and Iron.

The second hole is in progress targeting the zone below this initial intersection. A second rig is being mobilized to the site to ensure the scheduled drilling can be completed in a timely manner before spring breakup conditions set in.

Previous work on the Clay-Howells prospect, by the Company, included a detailed airborne magnetic survey and analysis of old drill core, which has positively enhanced the target as a discrete 1.2 km long magnetic high with significant Rare Earth Element, Niobium and Iron values. Limited analysis from historic drill core have been reported in previous releases (see Rare Earth Metals press release dated Dec. 17, 2009) and includes intersections in historic Hole 23 of 4.71% TREO (Total Rare Earth Oxides) over 4.6 meters and 0.94% Nb2O5 over 12.2 meters.

The current drill program is focused on defining the iron ore resource and establishing the grade of Rare Earth Elements, Niobium and Iron contained in the deposit. A limited amount of drilling will also test satellite magnetic high targets in proximity to the Clay-Howells Prospect. Results will be released periodically as they become available.

Inspiration to continue exploring its gold, molybdenum and rare earth properties

2010-02-03T02:09:21Z

Inspiration Mining Corporation announced that it is proceeding with the exploration of its Langmuir Nickel, Cleaver gold and Desrosiers rare earth properties.

Langmuir Property

Based on the recommendation of Micon International Limited in its National Instrument 43-101 compliant resource estimate report (the "Micon Report") for the Langmuir North Deposit and the Langmuir No 1 Deposit, the Corporation intends to commence a diamond drilling program.

The Micon Report indicated resources of 1,733,000 tonnes grading 0.51% nickel, and 8,324,000 tonnes grading 0.40% nickel in the Langmuir 1 and Langmuir North deposits, respectively for a total of 10,057,000 tonnes and identified at least four (4) exploration target areas of mineralization that are believed to hold the potential to host an additional 20 to 40 million tonnes of nickel mineralization of similar grades.

The proposed diamond drilling program will focus on the four (4) targets as outlined in the Micon report along with additional exploration targets that were discovered during a program of geochemical and geophysical surveying.

Cleaver Property

Previous exploration activities utilizing Reverse Circulation Drilling (RCD) within the central portion of the property returned values in the overburden ranging from 0 ppm up to 3,110 ppm (0.30%) of copper and from 0 ppb up to 521,460 ppb (15.209 oz/t) gold. The known Flinsky copper-zinc showing is located approximately 2.3km southwest of the property.

Drilling of EM conductors in the eastern Cleaver Township gold property was commenced in January 2010. The additional drilling program (consisting 6,000 meters) will target historical high gold values discovered near the bedrock in deep RC till sampling. Diamond drill cores from a late 2009 program on the western side of the property are being logged and sampled. The Cleaver property mineralization is either from gold-rich quartz and carbonate vein systems in volcanics, or gold-enriched zones in volcanogenic sulphide-rich substrate.

The Cleaver Property consists of 13 mining claims containing 192 mining claim units and is located in the northeastern portion of Cleaver Township. The western portion of the property is underlain by felsic metavolcanics and metasediments, which are then overlain by peridotitic komatiites. Numerous airborne electromagnetic anomalies are located at or near the komatiite lower contact. This unit has not been explored for either base metal or nickel mineralization. The eastern portion of the property is underlain by felsic metavolcanics with numerous airborne electromagnetic anomalies and mafic metavolcanics.

Desrosiers Property

The Desrosiers Township molybdenum-rare earth prospect lying 95 km southwest of Timmins, has returned encouraging values of molybdenum, bismuth, silver and rare earth elements. Logging and assaying of drill cores is in progress. The property will be the subject of additional mapping, prospecting and drilling later in the season. Baseline environmental sampling will also be started to allow for eventual removal of a bulk sample for metallurgical testing. Historical work, including bulk sampling on this property returned substantial values of molybdenum and non-NI43-101 compliant 50 and 165 ton samples averaged 1.0% and 2.25% MoS2 respectively.

Historical work by Jonsmith Mining in 1960 demonstrated molybdenum mineralization with grades varying from 0.03% to more than 10%, plus significant bismuth. Bulk sampling returned non NI 43-101 compliant results of 165 tons grading 2.255 MoS2, and 50 tons grading 1% MoS2. More recent sampling in 1999 revealed associated bismuth, silver, lead mineralization and low levels of copper, nickel and zinc. Regional lake bottom sediment sampling by the Ontario Geological Survey in 2005 revealed major molybdenum, lithium, niobium and rare earth element anomalies in the region.

Recent exploration efforts concentrated on the main showings on the southeastern part of the property. Follow-up soil sampling, ground EM and magnetic surveying, and geological mapping west of Alike Lake have revealed that molybdenum mineralization is located at the contact between mafic metavolcanic and metasedimentary rocks with granitic rocks. Various pegmatite veins intrude the main northwest-trending mineralized shear zone, 20 to 50 meters wide and at least 800 meters long, carrying molybdenite, minor chalcopyrite, and pyrite. Parallel zones of chalcopyrite and pyrite mineralization are also found in the host metasedimentary rock sequences.

Indaba: World metal prices to rise

2010-02-03T01:28:21Z

China's insatiable demand for resources is expected to continue to lead the recovery of the global commodities sector in the medium term, experts said at the 16th annual Mining Indaba, which began yesterday.

In a bullish outlook for prices and production levels of metals such as iron ore, copper, platinum, gold and rare metals, the experts said the industry was expected to benefit from demand from China in particular, and Asia in general - the fastest-growing regions in the world.

Their views confirmed the centrality of China as an emerging economic powerhouse that is expected to lead the world economy out of the recent crippling downturn. The Asian giant was referred to in every presentation on the global outlook of various commodities as an important factor to the world economy.

"China's commodity demand has reached critical mass, with global demand for copper from China rising to 35% from last year from 15% in 2001. China is the most important factor in turning copper and commodity production," said Kevin Norrish, MD for research at Barclays Capital.

"We expect price increases to hit fresh highs by 2012, driven especially by insatiable demand from China as well as an expected rise in demand from members of the Organisation for Economic Co-operation and Development."

Norrish said the copper sector was heading for a deficit in the next couple of years, with prices expected to reach highs of 8000 a ton.

Magnus Ericsson, chairman and president of Raw Metals Group, said China was key to understanding the future of most metals, especially iron ore.

He said though China was a major producer of metal, the past few years had shown a growing trend by China to import iron ore. This was largely because Chinese production of the metal was failing to cope with domestic demand. The dramatic fall in global prices in late 2008 had made imports more competitive for China.

"Domestic Chinese production has been hard hit because of declining grade ores in the country, while imports have remained constant. China will not be able to find any new deposits, which means that it will have to look elsewhere to meet demand. Supply from domestic demand does not show an encouraging picture that it will meet future demand," Ericsson said.

Global iron-ore demand was expected to grow 10% this year, while prices, benchmarked at last year's levels, were expected to rise 10%-15% in the medium term.

"In 2010 we expect to see the world returning to economic activity, with Asian countries, particularly China and India, leading the way. The demand for steel is very much linked to the resumption of global economic growth in the longer term. The long-term future is definitely brighter."

Ericsson expected the big three - BHP Billiton , Rio Tinto and Vale - to remain dominant in the iron-ore sector, even with further consolidation possible. This raised concern about concentration in the sector, he said.

A global recovery in vehicle manufacturing and increasing regulations on emissions boded well for demand for platinum group metals this year, Tom Kendall, a precious metals strategist at Japanese car maker Mitsubishi, said. He said platinum could reach 1700/oz in the second half of this year.

Uranium One announces 400% increase in Kazakh reserves

2010-02-02T05:04:45Z

Uranium One Inc. ("Uranium One") today announced inaugural reserve estimates for its South Inkai and Karatau Uranium Mines in Kazakhstan, as well as a significant increase in resources at Karatau. The Company also announced the completion of the acquisition of Christensen Ranch and Irigaray in Wyoming and an update to its standstill arrangement with JSC Atomredmetzoloto.

Highlights

- With the addition of reserves at South Inkai and Karatau, total attributable proven and probable reserves in Kazakhstan increased by 400% to 47.8 million pounds U(3)O(8), from the adjusted reserve base for Akdala.
- The Company declared its first reserve at the Karatau Uranium Mine, with attributable probable reserves of 14.6 million pounds U(3)O(8).
- Uranium One also declared its first reserve at the South Inkai Uranium Mine, with attributable proven and probable reserves of 23.6 million pounds U(3)O(8).

Kazakhstan Mineral Reserve Estimate (December 31, 2009)(1,2,3,4)

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Proven
Reserves Deposit Totals Company Share
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Tonnes Grade Contained Ownership Contained
(000's) (% U(3)O(8)) U(3)O(8) (%) U(3)O(8)
(M lbs) (M lbs)
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South Inkai 6,100 0.011% 1.4 70% 0.9
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Akdala 3,452 0.067% 5.1 70% 3.6
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Total Proven 4.5
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Probable
Reserves Deposit Totals Company Share
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Tonnes Grade Contained Ownership Contained
(000's) (% U(3)O(8)) U(3)O(8) (%) U(3)O(8)
(M lbs) (M lbs)
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South Inkai 33,200 0.045% 32.5 70% 22.7
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Karatau 12,542 0.106% 29.3 50% 14.6
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Akdala 5,839 0.067% 8.6 70% 6.0
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Total Probable 43.3
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Notes:
1. South Inkai mineral reserves are based on 100% of measured and indicated resources. Mineral reserves and depletion were confirmed by Simon Gatehouse, BSc, MAIG, on the basis of a detailed review of the mineral processing and metallurgical test and mine production results which were confirmed by Brian Lancaster, BSc, PhD, FRMIT, Dip Law, MAusIMM.
2. Akdala reserve estimates as at July 31, 2006, have been adjusted to reflect mine production to December 31, 2009.
3. Karatau mineral reserves are based on 100% of C1 resources and 50% of C2 resources. Mineral reserves and depletion were confirmed by Wayne Valliant, P. Geo., on the basis of a detailed review of the mineral processing and metallurgical test and mine production results. Mineral reserves are based on a 90% well field recovery.
4. Figures subject to rounding.

Resources

- Karatau - 12% increase in attributable indicated resources to 16.3 million pounds U(3)O(8) and a 373% increase in attributable inferred resources to 4.7 million pounds U(3)O(8).

Christensen Ranch and Irigaray

- Closing of the acquisition of Christensen Ranch and Irigaray for US$ 35 million in cash effective January 25, 2010.
- Uranium One now has a fully licensed and permitted processing facility which will form the basis of the Company's production plans in the Powder River Basin of Wyoming.

Reserve and Resource Estimates

Karatau Uranium Mine

Scott Wilson Roscoe Postle Associates Inc. ("SWRPA") has provided the Company with an updated NI 43-101 compliant mineral reserve and resource estimate as at December 31, 2009 for the Karatau Uranium Mine. The updated Karatau resource estimate incorporates new drilling information from 45,277 metres of drilling from an additional 67 holes that were not included in the previous SWRPA resource estimate as at November 2007.

Compared to the previous resource estimate, the new estimate shows a significant increase in the Indicated and Inferred Resource categories as follows:

- 12% increase in Indicated Resources to 32.6 million pounds U(3)O(8) (100% basis)
- 373% increase in Inferred Resources to 9.5 million pounds U(3)O(8) (100% basis)

SWRPA has also converted a portion of the Indicated Resources to a Probable Reserve by assuming a 90% well field recovery rate. The Probable Reserve estimate for Karatau is 12.5 million tonnes at a grade of 0.106% U(3)O(8), containing 29.3 million pounds U(3)O(8) (100% basis).

In SWRPA's opinion, in addition to the Indicated and Inferred Mineral Resources, there is significant potential to increase the mineral resource base. Exploration drilling indicated potential in the range of 20 million to 28 million tonnes grading 0.071% U(3)O(8) to 0.118% U(3)O(8), containing 41.6 to 57.2 million pounds U(3)O(8). This potential quantity is based on the Volkovgeologia P1 mineral resource estimate. The tonnage and grade for the potential quantity is conceptual in nature and further exploration is required to determine if this mineralization can be classified as Mineral Resources. It is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

Additional details of the updated reserve and resource estimate for Karatau can be found in Appendix "A" attached hereto.

South Inkai Uranium Mine

Hellmann & Schofield Pty Ltd. has provided the Company with an updated NI 43-101 compliant mineral reserve and resource estimate for South Inkai as at December 31, 2009. This estimate was completed in order to conduct an independent assessment of mining reserves at South Inkai to demonstrate the appropriate equivalence under NI 43-101.

In the updated resource estimate, a small amount of indicated resource was upgraded to the measured category. In addition, Hellman & Schofield have estimated reserves for South Inkai as follows:

- Attributable proven reserves of 0.9 million pounds U(3)O(8)
- Attributable probable reserves of 22.7 million pounds U(3)O(8)

Additional details of the new reserve and resource estimate for South Inkai can be found in Appendix "B" attached hereto.

Completion of Acquisition of Wyoming Assets

The acquisition of 100% of the MALCO Joint Venture ("MALCO") from wholly-owned subsidiaries of AREVA and EDF for US$ 35 million in cash was completed on January 25, 2010.

The assets of MALCO include the licensed and permitted Irigaray ISR central processing plant, the Christensen Ranch satellite ISR facility and associated U(3)O(8) resources located in the Powder River Basin of Wyoming. Uranium One expects that initial production from the Christensen Ranch project will commence in 2011.

The Irigaray central processing plant currently has the capacity to produce approximately 1.3 million pounds of dried U(3)O(8) per year. Uranium One intends to expand the processing capacity at Irigaray in line with the facility's Nuclear Regulatory Commission license to approximately 2.5 million pounds U(3)O(8) per year by incorporating a vacuum dryer purchased for use at the Company's Moore Ranch project.

Uranium One anticipates that its Moore Ranch project will now become a satellite ISR operation, with loaded resins being transported to Irigaray for further processing into dried U(3)O(8). The Company's other projects in the Powder River Basin, including Ludeman, Peterson, Allemand-Ross and Barge could also be developed as satellite operations, with final processing through Irigaray.

Greenland Minerals seeks JV partners in rare-earths project

2010-02-02T04:59:48Z

Greenland Minerals and Energy Ltd is fielding advances from parties seeking to partner in its $2.31 billion Kvanefjeld rare earths and uranium project in Greenland.

The Perth-based junior explorer on Monday released a report saying the project had the potential to be one of the world's largest rare earth mines, with a resource estimate of 4.9 million tonnes.

Managing director Roderick McIllree told AAP the capital cost estimate could fall to $1.4 billion, given that hefty contingencies had been incorporated in the $2.31 billion figure.

Mr McIllree said the company had about $9 million cash, which was sufficient to complete a feasibility study, followed by a definitive feasibility study (DFS).

It would then consider funding the project via a mix of 70 per cent debt and 30 per cent equity, he said.

The company may divest up to a 50 per cent stake in the project.

Mr McIllree said Greenland Minerals had held preliminary talks with four major potential partners from Europe and Japan and discussions would advance after the DFS was completed.

He said the company would favour parties that shared the junior explorer's aim of breaking China's stranglehold on the rare earth market.

China produces virtually all of the world's rare earths, which are in demand due to their use in electric cars, mobile phones and glass manufacturing.

Mr McIllree said Greenland Minerals aimed to ameliorate a supply shortage that would be exacerbated if China carried out its plan to ban exports of certain rare earths.

It had previously discouraged exports by imposing high taxes on exporting producers.

Mr McIllree said Greenland Minerals would seek a listing on the London Stock Exchange in late 2010 or early 2011.

Shares in Greenland Minerals closed 11 cents, or 16.67 per cent, lower at 55 cents.