Ucore Rare Metals Inc (TSX-V:UCU) ("Ucore"
or the "Company") is pleased to provide an update on ongoing
exploration work performed at the Company's Lost Pond property located
in western Newfoundland. The property is subject to a farm-in agreement
with the Kirrin Resources Inc. (TSX-V:KYM; "Kirrin"), with Kirrin
acting as both operator and earn-in partner. Lost Pond hosts numerous
prospective rare earth element (REE) and uranium showings, a number of
which have been explored by both Ucore and Kirrin over the past five years.
Kirrin has initiated a 1,500 meter drilling program
at Lost Pond's main uranium target (the "Cataclastic
Zone"; see Kirrin press release dated
Dec. 6, 2010). The program, budgeted at CDN$400,000, is scheduled for
completion by year end and is budgeted to include five drill holes.
Each hole will range between approximately 170 and 380 linear meters.
The drilling has an objective of testing the persistence of the Cataclastic Zone uranium-bearing mineralization at
depth.
Uranium mineralization at the Lost
Pond was first discovered by Shell Minerals in 1981. Recent exploration
work by Ucore defined the main uranium
showing as a 200 metre wide
'structural/alteration corridor' hosting the Cataclastic
Zone (up to 0.045% U3O8 over 12.3 m), in addition to parallel higher
grade fracture-controlled mineralization (up to 0.752% U3O8 over 0.5 m)
(see Ucore press release dated Sept. 16,
2008).
Diamond drilling completed to
date, totaling 3,100 linear meters, has documented that the Cataclastic Zone is a steeply plunging body, with
the width and uranium concentrations increasing at depth. The deepest
hole drilled to date has assayed 0.038 %U3O8 over 20.1 metres, including 0.061 %U3O8 over 3 metres (see Kirrin press
release dated Dec. 6, 2010). The current exploration phase will
continue to test the potential for increasing width and grade of
mineralized at depth.
"We're pleased with the high
quality of work performed by Kirrin Resources
at Lost Pond," said Jim McKenzie, Ucore's
President and CEO. "Results to date have been very encouraging and
we're looking forward to receiving additional data on the project. This
joint venture continues to leverage our potential for success in
Newfoundland, as we continue to focus on advancing our flagship heavy
REE property at Bokan Mountain, Alaska."
Background
Ucore Rare Metals Inc. is a well-funded junior
exploration company focused on establishing REE, uranium and other rare
metal resources through exploration and property acquisition. With
multiple projects across North America, Ucore's
primary focus is the 100% owned Bokan -
Dotson ridge REE property in Alaska.
In addition to uranium prospects,
the Lost Pond property contains significant REE mineralization, located
approximately two kilometers east of the Cataclastic
Zone. An initial Ucore drilling program
yielded, among others, an intersect averaging 4.47 wt.% Total Rare
Earth Oxides ("TREO") over 5.64 m (with dominant Ce2O3,
La2O3, Nd2O3 and Y2O3; see Ucore press
release dated July 16, 2008), while subsequent Kirrin
drilling intersected multiple mineralized zones, including 4.32 wt.%
TREO (predominantly Ce2O3, La2O3, Nd2O3 and Y2O3) over 2 m core length
in hole LP08-13 and 1.16 wt.% TREO (with similarly predominant Ce2O3,
La2O3, Nd2O3 and Y2O3) over 15.3 m core length in hole LPO8-17 (see Ucore press release dated Apr. 14, 2009).
Recent exploration work defined
five new REE showings, one of which yielded a grab sample with 10 wt.% TREO (including 4.13 wt.% Ce2O3, 2.22 wt.% La2O3
and 1.88 wt.% Nd2O3; see Ucore press release
dated Feb. 8, 2010). Mineralogical investigations by SGS Laboratories
of Lakefield, Ontario, showed that the bulk of REE in the mineralized
samples is present in monazite (74-90%), a mineral considered
relatively easy to "crack" or break apart into its elemental
constituents. The SGS work additionally showed that the REE liberation
ranges between 80-95% (see Ucore press
release dated Apr. 8, 2009).
The Lost Pond property comprises
1,083 contiguous claims, spanning a territory in excess of 270 square kilometres near Newfoundland's west coast. Situated
just 30 kilometres east of Stephenville, Lost
Pond is within close proximity to the province's west coast economic
centre at Corner Brook and is highly accessible. The Trans Canada
Highway and existing power lines run through the property, in addition
to an extensive network of logging roads and access routes.
The Lost Pond property is subject
to a farm-in agreement between Ucore Rare
Metals Inc and Kirrin Resources Inc whereby Kirrin can earn up to a 50% interest in the
property by completing a schedule of annual exploration expenditures
and share payments to Ucore (see Ucore press release dated Sept. 16, 2008).
For further information, please
contact Mr. Jim McKenzie, President and Chief Executive Officer of Ucore Rare Metals Inc. at: (902) 482-5214 or visit www.ucoreraremetals.com
This press release includes
certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements
of historical facts, that address future exploration drilling,
exploration activities and events or developments that the Company
expects, are forward looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially
from those in forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking
statements include exploitation and exploration successes, continued
availability of financing, and general economic, market or business
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