Rare Earth elementsAssessment reports mineralization of 2.173 million tons rare Earths elements in Idaho, Montana

U.S. Rare Earths, Inc. announced the other day the final results of an independent analysis of historic exploration work done on its Idaho and Montana properties.

The third-party resource assessment, undertaken by Process Engineering, SP under the direction of geological and metallurgical engineer Howard Dunn, analyzed historic work on the company’s properties, applying international standards and guidelines.

In July, based on a cut-off grade of 0.10 percent, the ompany cited the preliminary independent report (“Dunn Report”) as indicating the presence of 645 MT (thousand short tons) of mineralization at 0.95 percent REO (Rare Earth Oxides; weighted average “WA”), with an additional 1,500 MT of mineralization at 0.68 percent WA REO in the company’s Idaho and Montana claims, located in the Lemhi Pass region.

The final report adds assessments of the company’s Sheep Creek, Diamond Creek, and North Fork claims, ranging from 1 to 10.5 percent. Total tonnage outside the Lemhi Pass area is estimated at 19.56 MT, bringing the overall tonnage to 2,173 MT.

The Company’s Colorado claims were not assessed in this report.

As the Dunn Report notes: “The Fair Market Value is only for ‘Rare Earth’ mineralization and yttrium (yttrium is typically included in rare earths mineral deposits) herein also as ‘Metal Oxide,’ exclusive of all other minerals and metals including the exclusion of precious metals, platinum group metals, base metals, and specifically thorium, uranium, niobium, and tantalum.”

The review of historic data draws on drilling and field work done over a 40-year period, by entities including Idaho Energy Resources Company, Idaho Power, Tenneco, and the U.S. Geological Survey. The review also included recent (2007-11) contracted field work sampling and analysis by USRE, which in general supported the historical findings. Analysis was done by Activation Laboratories (ACTLabs), Inc. of Ontario, Canada.

This historic work does not meet current SEC guidelines for establishing resources and reserves, but it provides a valuable insight into the potential value of the company’s claims.

“Looking at the mineralization we see in the historic data, which covers work done by well-capitalized resource companies as well as U.S. government agencies,” said CEO Michael Parnell, “we’re confident further work can progress our properties to the resource stage.”