VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 3, 2016) – Search Minerals Inc. (“Search” or the “Company”) (TSX VENTURE:SMY), and its wholly-owned subsidiary, Alterra Resources Inc. (“Alterra“), are pleased to report channel assay results from the Fox Meadow (Critical Rare Earth Element) (“CREE“) prospect located in the Port Hope Simpson CREE District in southeastern Labrador (the “District“). Preliminary field and geochemical results prepared by the Company indicate that the Fox Meadow CREE prospect is very similar to the nearby Foxtrot Project resource. The Company holds a 100% interest in the Fox Meadow prospect.
HIGHLIGHTS OF THE FOX MEADOW PROSPECT
- Assays highlights include: 244 ppm Dy (280 ppm Dy2O3), 1109 ppm Y (1408 ppmY2O3), 1478 ppm Nd (1724 ppm Nd2O3) and 41.2 ppm Tb (48.5 ppm Tb4O7) over 3.48m; and, 198 ppm Dy (227 ppm Dy2O3), 830 ppm Y (1054 ppm Y2O3), 1089 ppm Nd (1270 ppm Nd2O3) and 33 ppm Tb (38.8 ppm Tb4O7) over 7.61m;
- CREE assay results at Fox Meadow are similar to those at Foxtrot;
- Fox Meadow has similar or greater surface dimensions than the Foxtrot deposit and the Deepwater Fox prospect; and
- Fox Meadow is the third large Foxtrot-like mineralized zone discovered in the District.
Greg Andrews, President and CEO comments: “The Fox Meadow prospect is very significant as it, along with the Deepwater Fox prospect, helps validate our belief that in addition to the Foxtrot Project, Search is defining a prolific, strategically significant District in this easily accessible region of southeastern Labrador. The preliminary economic assessment of the Foxtrot Project, our first major discovery in this region, points to an excellent project that can be developed as a stand-alone project at relatively low cost. The addition of Deepwater Fox and now Fox Meadow, has the potential to add to our source feed and could present potential new open pit development options. Our patented metallurgical technology and scalable processing facility design can accommodate multiple sources of material and future expansion without sunk costs. Each additional project and prospect extends the life of the District and provides more options with respect to how soon the Company would have to consider major capital investment in higher cost underground mining.”
He also adds: “Our current financing, which has been increased to support the demand, allows Search to continue to advance the District and initiate the environmental application submissions. The bench scale work of the Pilot Plant has been completed with the data used to procure the equipment and initiate construction of the Pilot Plant. The Pilot Plant will provide key engineering data and a mixed rare earth concentrate to provide to refineries and other separation facilities to produce the individual rare earth oxides along with pricing. With these advancements to the District and the Pilot Plant, we feel the Company is well positioned to attract strategic and offtake partners.”
The Fox Meadow prospect (see Search Minerals news releases October 30, 2013 and August 30, 2016) occurs about 11 km west of Port Hope Simpson and 1 km from a gravelled forest access road. Geological mapping and channelling prepared by the Company indicates that the mineralization occurs in two bands. The northerly band is sampled by four sections of channels that indicate it is at least 39m wide and over 425m long; outcrop mapping extends this zone by an additional 200m. One channel, 5.11m long, cuts the southerly band, which is approximately 100m south of the northerly band; outcrop indicates that this band is at least 200m long. Forest and overburden cover obscure the bedrock geology between the southerly and northerly bands.
Weighted averages of REE and selected incompatible elements for both the northerly (column 1-5) and southerly (column 6) mineralized units are listed in Table 1. Analytical techniques, sample preparation, and channel sampling procedures are outlined in Search’s July 27, 2010 and September 8, 2010 news releases.
The observed surface dimensions of higher grade mineralization at Fox Meadow are similar to the Foxtrot Deposit (10-14m wide and 400m long) and Deepwater Fox Prospect (up to 34m wide and 500m long – See Search’ news release January 27, 2015). A comparison between Fox Meadow, Deepwater Fox and Foxtrot CREE values (Table 2) indicates that CREE values at Fox Meadow are very similar to those at Foxtrot. The Fox Meadow prospect appears to be a third Foxtrot-like mineralized zone in the District.
Follow-up geological mapping, trenching and channelling programs are planned to further evaluate and extend the two mineralized bands and to explore the relationship between these two bands at Fox Meadow in 2017.
|TABLE 1 – FOX MEADOW PROSPECT 2016 CHANNEL HIGHLIGHTS|
|HREE + Y||1185||1993||1683||1385||1549||1344|
|TREE + Y||5018||7977||7181||5703||6126||5142|
|% TREE + Y||0.50||%||0.80||%||0.72||%||0.57||%||0.61||%||0.51||%|
|% HREE + Y||23.61||%||24.99||%||23.44||%||24.29||%||25.28||%||26.13||%|
|TABLE – 2 – FOX MEADOW VS FOXTROT & DEEPWATER FOX|
|FOXTROT RESOURCE||DEEPWATER FOX||FOX MEADOW|
|HREE + Y||1741||2066||2172||2477||1993||1549|
|TREE + Y||8812||10412||11658||12776||7977||6126|
|% TREE + Y||0.88||%||1.04||%||1.17||%||1.28||%||0.80||%||0.61||%|
|% HREE + Y||19.76||%||19.84||%||18.63||%||19.39||%||24.99||%||25.28||%|
|Note:||All amounts parts per million (ppm). 10,000 ppm = 1% = 10 kg/tonne|
|REE||Rare Earth Elements: La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu (Lanthanide Series).|
|TREE||Total Rare Earth Elements: Add La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu.|
|LREE||Light Rare Earth Elements: Add La, Ce, Pr, Nd, Sm.|
|HREE||Heavy Rare Earth Elements: Add Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu.|
|Y||Y not included in HREE due to relatively low value compared to most Lanthanide series HREE.|
|%HREE||%( HREE/ TREE)|
|HGC||High Grade Core (higher grade resource at Foxtrot)|
Dr. Randy Miller, Ph.D., P.Geo, is the Company’s Vice President, Exploration, and Qualified Person (as defined by National Instrument 43-101) who has supervised the preparation of and approved the technical information reported herein. The company will endeavour to meet high standards of integrity, transparency, and consistency in reporting technical content, including geological and assay (e.g., REE) data.
About Search Minerals Inc.
Led by a proven management team and board of directors, Search is focused on finding and developing resources within the emerging Port Hope Simpson Critical Rare Earth Element (CREE) District of SE Labrador. The Company controls a belt 70 km long and 8 km wide including its 100% interest in the FOXTROT Project which is road accessible and at tidewater. Exploration efforts have advanced “Deepwater Fox” and “Fox Meadow” as significant new CREE prospects very similar and in close proximity to the FOXTROT discovery. While the Company has identified more than 20 other prospects in the District, its primary objective remains development of FOXTROT by confirming proprietary processing technology at the pilot plant level (in progress) and delineation of prospects that will ensure competitive-low cost production beyond the 14-year mine life contemplated in the preliminary economic assessment of FOXTROT completed in April 2016. The FOXTROT Project has a low capital cost to bring the initial project into production ($152 M), a short payback period, and is scalable due to Search’s proprietary processing technology.
Identified as Neodymium (Nd), Europium (Eu), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y), this valuable subset of the complete series of seventeen rare earth elements is considered critical due to high demand and/or constrained domestic supply. Containing unique properties which enhance the performance of a range of innovative technologies, CREE’s are essential components in the development of permanent magnets and a variety of other components used in renewable energy, green technology automobiles, medical devices, electronics and agricultural production.
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Cautionary Statement Regarding “Forward-Looking” Information.
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, without limitation, statements relating the future operating or financial performance of the Company, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or “should” occur or be achieved. Forward-looking statements in this news release relate to, among other things future events or the Company’s future performance, business prospects or opportunities. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; and those additional risks set out in Search’s public documents filed on SEDAR at www.sedar.com. Although Search believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
President and CEO