Playfair Mining Ltd.

Playfair Mining Ltd.

February 17, 2010 08:30 ET

Playfair Mining Ltd.: Rare Earth Option Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 17, 2010) - Playfair Mining Ltd. (TSX VENTURE:PLY) is pleased to announce that it has entered into an option agreement with Rare Earth Metals (TSX.V–RA) on its six large claim REE blocks in central Labrador. The six Playfair claim blocks, containing 313 claims covering a combined 7,825 hectares, are located in the Letitia Lake - Red Wine region covering highly prospective ground which is enriched in both rare metals and rare earth elements (REE).

Rare Earth Metals ('REM') can earn a 51% interest in Playfair's six claim blocks by making an initial payment of $15,000 and 20,000 shares and guaranteeing a minimum first year expenditures of $100,000. Thereafter, Rare Earth Metals will make further annual contract anniversary payments of cash and shares totalling $55,000 and 130,000 shares and also incur additional exploration expenditures totalling $400,000 over three years in order to earn a 51% interest in the claims. The parties will then form a joint venture to further explore and develop mineral resources on the property. REM will operate the exploration programs during the option period in consultation with Playfair.

This Playfair – Rare Earth Metals agreement accompanies a second and separate option agreement between REM and Cornerstone Capital Resources Inc. (TSX.V-CGP), which is similar in nature and scope. REM, via staking and the two option agreements has consolidated a coherent land package in the Letitia Lake - Red Wine River region totalling 584 claim units (146 sq. km). The Red Wine REE District is located 120 km northeast of Churchill Falls, Labrador and is within 50 kilometres of an existing resource road originating at Churchill Falls. The estimated centre of the Red Wine REE camp is only 10 kilometres southwest of the western extent of Playfair's Seal Lake Copper-Silver exploration property.

During this upcoming summer-fall exploration season, Rare Earth Metals plans to conduct airborne geophysics and follow-up sampling, with select diamond drilling on priority showings and anomalies. This will be the first time since the 1960‟s that any detailed field work has been done in the area.

Don Moore, Playfair's Chairman stated, "Playfair is delighted to have Rare Earth Metals as an exploration partner in the Red Wine REE exploration Camp. Management is experienced and high quality and REM is a well funded exploration company. We look forward to this summer‟s exploration results. With this option agreement in place, Playfair can focus its near term exploration efforts on the newly acquired Seal Lake copper silver opportunity with its attention grabbing district scale."

The historic Letitia Lake – Red Wine exploration camp hosts numerous showings containing rare metals (beryllium, zirconium, yttrium and niobium) and rare earth elements (REE). This camp has many regional-scale lithological and geochemical similarities to the Strange Lake REE-Zr-Y-Nb-Beryllium exploration camp, located 260 kilometres to the northwest. Like Strange Lake the Red Wine area is underlain by middle mesoproterozoic peralkaline rocks which are enriched in rare earth elements and other uncommon metals.

China produces more than 90% of the world's REE and has recently taken steps to hoard its own production creating well founded supply concerns for the world's developed countries. Rare earth metals and elements are used in a variety of critical ways, such as in the production of magnets/engines/batteries in hybrid cars, consumable electronics, (Blackberries, iPods, flat screen televisions), miscellaneous green energy technologies and military applications.

REE exploration fits well with Playfair's mandate of accumulating strategic metal assets. The Red Wine REE property complements Playfair's long term bullish view on tungsten, as the geopolitical and supply problems facing REE and tungsten are similar. China's self serving stance on many speciality metals continues to reflect that it requires the majority of its internal production for its own national growth, effectively starving the rest of the world of these critical metals. Their recent change in position on REE further solidifies China's plans for such strategic assets.

Michael Moore, PGeo, is the qualified person who has reviewed the technical information contained in this news release on behalf of the company.

D. Neil Briggs"
D. Neil Briggs

Forward-Looking Statements: This Playfair Mining Ltd News Release may contain certain "forward-looking" statements and information relating to Playfair which are based on the beliefs of Playfair management, as well as assumptions made by and information currently available to Playfair management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Playfair Mining Ltd.
    D. Neil Briggs
    604 687-7178 or Toll Free: 888-244-6644
    604 687-7179 (FAX)