Texas Rare Earth Resources Expanding Exploration Program for Heavy Rare Earth Elements at Round Top Project
Board approves increasing exploration budget to $8.8 million following successful financing in June
Positive aeromagnetic survey extends drilling program into apparent expanse of rhyolite structure previously unidentified
Press Release Source: Texas Rare Earth Resources Corp. On Tuesday August 23, 2011, 2:00 pm EDT
SIERRA BLANCA, Texas & DENVER--(BUSINESS WIRE)-- Texas Rare Earth Resources Corp. (the “Company”) (OTCQB: TRER), a heavy rare earths exploration and development company, announced today that it is expanding its exploration program at its Round Top rare earth —beryllium-uranium project in West Texas over the next twelve months into three phases and over a broader area based on the recent, encouraging aeromagnetic survey results. Independently published data indicates that the Round Top project may contain approximately 1.6 billion metric tons of rhyolite host rock containing rare earth minerals with potentially a 70% ratio of heavy to total rare earth minerals.
Measurable Progress Made to Advance the Round Top Project to the Resource Definition Stage
On July 11, 2011, the Company initiated an exploratory drilling program at its Round Top project that initially consisted of approximately 12,000 feet of reverse circulation drilling. This drilling was planned to twin certain historic drill holes, infill drill between existing holes, and step out to define the margins of the potential deposit. To date, 18 holes have been completed with the 19th presently at 480 feet, for a total of 7,321 feet drilled. Approximately 16 tons of rhyolite have been recovered and the material is being prepared for chemical analysis at a commercial analytical laboratory. There are approximately 27 additional drill holes sited for this phase of drilling. Average depth of these holes and the volume of metallurgical sample are expected to increase as drilling progresses to higher elevations on Round Top Mountain. The Company estimates that the original 12,000 feet of planned drilling will be increased during this phase. Round Top Mountain was originally drilled in the mid 1980’s, and the Company has been re-logging and re-analyzing 82,000 feet of historical drilling.
In July, Aeroquest Airborne completed approximately 600 kilometers of Tri-Axial Magnetic Gradiometer airborne survey over Round Top Mountain and the surrounding area. Preliminary results announced on August 16, 2011 indicated greater expanse of rhyolite in the subsurface than originally expected. A strong northwest-southeast trending magnetic anomaly is present below Round Top Mountain and extends under alluvium to the northwest and to the southeast extends under the gravel covered valley. This data exceeds the Company’s initial expectations for the rare earth mineralization potential of the Round Top project area. The data defines at least four additional drill targets to the east and to the northwest of Round Top Mountain.
The Company has commissioned a detailed gravimetric survey of the Round Top project area and it is expected that the combination of the gravimetric survey with the aerometric survey will better define drill targets both for additional masses of mineralized rhyolite and for possible limestone-fluorite-rare earth minerals replacement mineralization in the favorable limestone at depth.
A supplementary operating plan is being prepared to extend the drilling program to test these magnetic features and to better define the volume of mineralized rhyolite at the Round Top project. The supplementary plan will be submitted to the Texas General Land Office for approval. The Company intends to be able to begin to model the Round Top project.
In August, Texas Rare Earth Resources added Anthony Garcia as Senior Vice President of Project Development, to oversee the Company’s efforts at the Round Top project. Mr. Garcia, who has more than 20 years of project/engineering management, design, and field experience in the mining and metals industry, was most recently a Value Assurance Senior Director for Newmont Mining (NYSE:NEM - News), where he oversaw the review of 35 projects in Newmont’s pipeline.
Marc LeVier, President and Chief Executive Officer of Texas Rare Earth Resources, commented, “Given the early results from our initial drilling program, the favorable aeromagnetic survey, and now having a talented and very capable person in Anthony overseeing the development at the Round Top project, management and the Board made the strategic decision to accelerate our exploration capital plan. Initially, we projected our exploration costs to be approximately $2.2 million over a twelve-month period beginning in June 2011. Our exploration budget now is for approximately $9 million for fiscal 2012 on exploration-related and project advancement activities. We are extremely encouraged with our progress and the potential of this large, heavy rare earth minerals project.”
The Company’s cash balance at July 31, 2011 was $17.35 million compared with $17.7 million at June 30, 2011 and $9.8 million at May 31, 2011. The increase from the May balance was due to the receipt of $9.2 million in June of the total $15.6 million received through the successful completion of the second stage of financing that was previously announced in January and February 2011.
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