Texas Rare Earth Initiates Drilling at Round Top Project
Approximately 50 drill holes and 12,000 feet of reverse circulation drilling planned Awaiting aeromagnetic surveying analysis Also reviewing options for monetizing uranium and beryllium assets as means of minimizing shareholder dilution
Press Release Source: Texas Rare Earth Resources Corp. On Thursday July 14, 2011, 11:00 am EDT
HOUSTON & DENVER--(BUSINESS WIRE)-- Texas Rare Earth Resources Corp. (OTCQB:TRER), a heavy rare earths exploration, development and mining company, announced today that it began exploratory drilling on its Round Top Project near Sierra Blanca, Texas on July 11, 2011. This program includes approximately 50 drill holes totaling at least 12,000 feet of reverse circulation drilling. Coverage is planned to be adequate to begin block modeling of the deposit. The Company expects the drill program to span the next three to six months while concurrent testing activities will be ongoing.
Marc LeVier, Chief Executive Officer of Texas Rare Earth Resources, commented, “This is another important step in our efforts to advance this project to the resource definition stage. We expect to produce at least 150 tonnes of sample from this drilling, which in addition to mineralization analysis will be packaged and used for metallurgical testing. Our objective is to better define the thickness and margins of the rhyolite and to ultimately define the resource and its economic potential.”
The close-spaced aero-magnetic study contracted to Aeroquest Airborne was completed at Round Top Mountain in June. Aeromagnetic surveying will help to define the form and geometry of the mineralized rhyolites and to detect the presence of other rhyolite bodies which may be hidden under cover. The analysis of the data is ongoing and preliminary results are expected in the next four to six weeks.
Mr. LeVier continued, “Round Top’s unique concentration of heavy rare earth elements (HREE) to light rare earth elements (LREE), potential size and shallow structure, positions us to be a potentially leading global low-cost producer for rare earths as demand for the heavy metals continues to grow. Importantly, there are certain elements that currently are still in early stage science and for which we believe we could be a major supplier as the applications continue to evolve.”
Texas Rare Earths’ flagship Round Top Project was originally drilled in the mid 1980’s, and the Company has been re-logging and re-analyzing 82,000 feet of historical drilling. Results have consistently reconfirmed apparent uniform rare earth grades and an approximate 70% ratio of HREE to LREE. A study conducted by the Texas Bureau of Geology, published in the Geological Society of America, Special Paper 246 in 1990, estimated the size of the body to be approximately 1.6 billion metric tons.
The Company also announced that it is evaluating the beryllium deposit that had been identified by Cabot Corporation in 1986 and later by Cyprus Minerals in 1988 as a potential source of funding for the Round Top Project. Results of the reanalysis of historic samples also indicated potentially significant uranium value.
Mr. LeVier stated, “Based on historic data and information, the Round Top Project appears to hold several elements that are not primary to our rare earth focus. While we intend to pursue traditional financing as we advance Round Top towards production of heavy rare earth elements, we are committed to minimizing dilution for our shareholders and are proactively evaluating alternative means of finance including monetizing non- core potential assets." The Company believes it has sufficient capital to fund operations and exploration activity at its Round Top Project through the end of calendar year 2012. Its current exploration program budget for the next twelve-month period is approximately $2.2 million and includes the aeromag survey and analysis, as well as the present drilling program. |
