|
Greetings!
Quantum Rare Earth Developments Corp. (TSX.V - QRE, FSE - BR3, OTCQX - QREDF) is pleased to announce an updated NI 43-101 compliant resource estimate for the Elk Creek Niobium - REE Project, located in Nebraska, USA. The resource update reconfirms Elk Creek as the highest grade Niobium project in North America, and adds significant tonnage and grade.
Highlights:
- Addition of higher grade indicated status tonnage of 19.3 Mt grading 0.67% Nb2O5,
- An increase in inferred status tonnage and grade from the previous resource estimate (News Release dated April 28, 2011); from 80.1 Mt grading 0.62% Nb2O5 to 83.3 Mt grading 0.63% Nb2O5
To put into perspective the resource size and grade, the only North American producer of Ferro-Niobium(IAMGOLDs Niobec) enjoyed substantial corporate profits operating on a ore grade of 0.57% last year (reported in their 2011 annual report). Quantum's resource is the highest grade primary niobium deposit under development in North America and the only major deposit of Niobium in the U.S., where 100% of this strategic metal is imported.
Table 1. Mineral Resource Estimate, Elk Creek Niobium Deposit
Effective March 21, 2012
|
Classification
|
Nb2O5 %
cutoff |
Tonnage
(Mt) |
Nb2O5 %
Grade |
Contained Oxide
t Nb2O5 |
|
Indicated |
0.70% |
7.226 |
0.86 |
61,940 |
|
Indicated |
0.60% |
11.373 |
0.78 |
88,770 |
|
Indicated |
0.50% |
15.844 |
0.71 |
113,271 |
|
Indicated |
0.40% |
19.319 |
0.67 |
129,182 |
|
Indicated |
0.35% |
19.632 |
0.66 |
130,376 |
|
|
|
|
|
|
|
Inferred |
0.70% |
20.984 |
0.80 |
167,447 |
|
Inferred |
0.60% |
44.596 |
0.72 |
320,521 |
|
Inferred |
0.50% |
71.333 |
0.66 |
468,026 |
|
Inferred |
0.40% |
83.288 |
0.63 |
523,844 |
|
Inferred |
0.35% |
83.744 |
0.63 |
525,591 |
Click Here For Full News Release
The updated resource estimate for the Elk Creek Niobium Deposit has resulted in an overall increase in tonnage with an Indicated Mineral Resource of 19.3 million tonnes grading 0.67% Nb2O5 (using a 0.40% Nb2O5 cut-off grade), and an increase in Inferred Mineral Resources to 83.3 million tonnes grading 0.63% Nb2O5 (using a 0.40% Nb2O5 cut-off grade). The resource update is the result of an additional three holes completed by the Company at the Elk Creek Niobium Deposit in 2011. A summary of the resources, with sensitivity to cut-off grade is presented in Table 1.
"The addition of a substantially higher-grade indicated Mineral Resource gives us confidence in our continued development efforts of this very large and high grade niobium deposit," states Peter Dickie, President of Quantum.
The price for Ferro-Niobium, the most commonly used niobium product, has remained fairly constant over the past six months, and is currently quoted around US $43 per kg.
The other 2 major North American deposits are Taseko's Aley depost that has a measured and indicated (M + I) resource average grade of 0.37 per cent Nb2O5 plus an inferred resource with an average grade of 0.32 per cent Nb2O5 and IAMGOLD's Niobec mine that has M + I resource average grade of .42% Nb2O5. Both of these deposits use a cutoff grade of .20% Nb205, where Quantum uses a .40% cutoff grade. Aley and Niobec are loacated in Canada.
The metallurgical test program is on-going, and is based on composite samples of drill core obtained from the 2011 drill core. The work is being conducted at the Hazen Research Inc. facility in Golden, Colorado.
Sincerely,
Shawn Westcott
604.568.7365 ext 227 - 1.877.385.0345
www.quantumrareearth.com
TSX.V: QRE - QTCQX: QREDF - FSE: BR3
|