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Gold/Mining/Energy : The Metals Thread -- Ignore unavailable to you. Want to Upgrade?

To: seventh_son who wrote (98)	3/27/2007 2:15:30 AM
From: haitokin	Respond to of 252

Well, For starters, go to their website, under value proposition, scroll down and click on Eden Lake. You'll see this: Why Eden Lake? The Company optioned the Eden Lake REE-Uranium property to participate in the highly specialized, but extremely valuable, rare earth elements / minerals market. The 16 Rare Earth Elements (REE’s) are essential ingredients for a variety of materials used in leading edge technologies and industrial products important to the industrialized world. Further, approximately 90% of North America ’s REE’s are sourced from China, so a viable North American deposit would have significant political and strategic importance. Initial Discovery During the 2002 summer program Dr. Hamid Mumin (Brandon University), and colleague John Camier M.Sc. (South Bay Exploration Ltd.), discovered Manitoba’s first Carbonatite complex on the property. In 2003 the most significant discovery was an extra-ordinary rare metal vein complex exposed sporadically over an area of at least 2 km by 150 meters. Thirty-five samples of vein material averaged 49,687 ppm (4.97%) rare metals (REE + Y + U + Th). Both the vein complex and carbonatite are potential targets for diamond drilling. Exploration History The first drill program at the Eden Lake was completed in March 2006. Six drill targets were tested. The targets were selected using various criteria including their geochemical signature, magnetic field reading, and their location within low ground, along prominent linear features which cross the property and may control the emplacement mineralized bodies. The initial drill-core was logged and sampled at the Company’s facility in Leaf Rapids, Manitoba and samples sent to a certified Canadian laboratory for analysis under the direction of Dr. George Gale, P Eng. Qualified Person. The drill program resulted in the intersection of veins and lenses with rare earth bearing apatite in four holes. Multiple veins of apatite-bearing carbonatite occur with a zone of carbonate altered rocks that are in excess of 50 m of core length in hole EL-06-03. These drill holes are interpreted to have intersected the uppermost portion or the margin of a carbonatite body. Although no economic grades of mineralization were intersected, the 2006 drill program confirms that carbonatite is more common in the topographically low areas of the property and contains rare earth-bearing apatite. Five of the holes intersected altered (fenitized) rock, which is a common alteration at the edges of carbonatite masses. The drill program was able to test 5 of the 10 anomalies identified from the exploration work done to date. The drill results establish that the carbonatite magma intruded late in the history of the Eden Lake igneous complex and that the mineralization discovered to date, represents the upper portions of a carbonatite magmatic system. The Future The drill results provide a framework for further evaluation of the vegetation, soil and rock data collected over the property. This review will help in the planning the next phase of exploration. The Company is also exploring opportunities to Joint Venture the property with a suitable partner. For more information about Rare Earth Elements and their uses go to pubs.usgs.gov. ? Press Releases -------------------------------------------------------------------------------- Value Proposition These metals are more difficult to value than base or precious metals. Using values for processed refined metals gathered from publicly available documents provides some context for the potential value. All numbers are based on processed purified metals. Gross Metal Value (GMV) Eden Lake, Manitoba Target: Large Tonnage Deposit 100 mil tonnes or greater in size. The total Gross Metal Value of the metals in an Apatite Concentrate grading 2.5% ~ $11,000/t. REE Vein sample ~ $62,000/t Gross Metal Value of combined elements refined. Mean grades of 30 separate REE Vein samples ~ $21,000/t (GMV) As a comparison, using a common metal such as Copper in a 28% concentrate, approximates (2000lb at a grade of 28% Cu) or roughly $1100/t Gross Metal Value. H

To: seventh_son who wrote (98)	3/27/2007 3:20:45 AM
From: haitokin	Read Replies (2) \| Respond to of 252

As for your three questions, I once saw some pictures on their website prior to the drilling last march? showing the road into Eden Lake, and its not too far from civilization. If they actually high graded by following the veins (which I believe are quite thin much like some gold bearing quartz veins which, when bonanza grades are involved, are worth highgrading), They could load it on a truck and send it wherever they need to (think: 30tonnes @ even $10,000 before proper seperation). Here's what another little rare earth junior mentions about their rare earth deposit: GWG.V After reading it, you'll get the idea about how potentially valuable these small amounts of rare earths could prove to be, and that's at today's prices, before they skyrocket, which IMO they will have to, because we just don't have enough of them, and they aren't easy to locate. If the price appreciates dramatically, you'd probably be better off just having it as a back burner property, rather than putting it into production too soon and selling the stuff for peanuts at todays prices. Note that the veins that VMS found are twice as rich as GWG's, but that without details, you'd have to take their word about how valuable their particular mix of rare earths would be. GWG plans to go into production and seem quite serious about it. From GWG's website: The 2006 drill program was designed to upgrade the Inferred resource to the Measured and Indicated categories and this program was highly successful in that the Measured and Indicated resource increased 108% to 1,150,000 tonnes from 553,000 tonnes with a slight increase in grade to 2.362% total rare earth elements including yttrium ("TREE + Y") from 2.341% TREE + Y. Preliminary Economic Assessment This significant increase in the Measured and Indicated resource categories raises the confidence level in the resource estimate forming the basis for the Preliminary Economic Assessment Study currently in progress under the direction of Wardrop. The base case is a 500 tonne per day mining operation producing between 3,000 and 5,000 tonnes of TREO + Y2O3 per year. This represents approximately 10% of US demand for rare earth elements in a market which the United States Geological Survey estimates at US$1 billion annually. A key factor in determining the value of an REE deposit is the distribution of the individual REE within the deposit. The total grade does not tell the whole story. The distribution of in-demand, higher-value elements is more important than total grade. Hoidas Lake, for example, contains a higher proportion of neodymium (21.89%) than other deposits, giving an average TREO value of approximately US$11,000(2) per tonne compared to a US$7,100(2) per tonne TREO value at Bayanobo, China (with a 15.40% neodymium proportion) and a US$5,700(2) per tonne TREO value at Mountain Pass, California (with a 12.00% neodymium proportion). Neodymium, a key element in the permanent magnets used in many high-technology applications, is currently the driving force in the rare earth industry and prices have risen dramatically (over 50% in the last 6 months) with increased demand. These average values can be increased significantly through value-added processing. Great Western Technologies Inc. As part of the Company's "mine to market" vertically-integrated strategy, it operates specialty metal manufacturing facilities in Troy, Michigan through a 100%-owned subsidiary, Great Western Technologies Inc. ("GWTI"). The highly-motivated staff at GWTI is focused on developing the market for high-margin specialty alloys using REE for various high-technology industries. Recent production has included hydrogen storage materials for the automotive industry, special alloys for the aerospace industry, powders for the rechargeable battery industry and powders for the permanent magnet industry. The work at GWTI can significantly add to the value of production from Hoidas Lake should the mining operation prove feasible. Now, if you do the math, GWG's deposit works out to about $300M in situ value. Since its NI compliant, the market value for this should be somewhere's around 5-10% of that or $15-30M depending on subjective factors some of which (vertical integration ect) they score well on, some they don't. If VMS proved up a resource half as big, but twice as rich, that'd be better IMO, and 'POOF' you've just justified their entire enterprise value - or even doubled it. Without the VMS deposits. other rare earths: AVL.V,RES.V,CCE.V Haitokin