Rare Element Resources Ltd.
TSX VENTURE : RES

Rare Element Resources Ltd.

October 13, 2009 09:00 ET

Rare Element Identifies High-Potential Whitetail Ridge Rare-Earth Target

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - Rare Element Resources Ltd. (TSX VENTURE:RES) (the "Company") is pleased to announce the identification of an additional rare-earth-element (REE) target area approximately 1500 feet northwest of the Bull Hill Southwest deposit at the Bear Lodge project, Wyoming. The Company designates this area as the Whitetail Ridge rare-earths exploration target, and it is being prepared for possible drilling later this fall, weather permitting. The new target is located adjacent to and west of the Bull Hill Northwest target. It was recognized from a combination of: 1) detailed geological mapping of FMR (FeOx-MnOx-REE) vein material by our gold exploration partner, Newmont North American Exploration Ltd.; 2) a positive ground geophysical anomaly of a type coincident with significant REE mineralization in other parts of the project area; and 3) a review of nearby historic drill holes that intersected strong REE mineralization in FMR dikes and veins. The size of the geophysical anomaly (approximately 1400 by 2000 feet elongate northeasterly) provides an indication that this REE target may be larger than others in the district. Historic drill hole WP-1, drilled by Hecla Mining Company in 1987, intersected 430 feet of strong REE mineralization in a near-surface intercept from 0 to 430 feet that averages 2.44% REO. Within the larger intercept were several 10-foot intercepts with grades ranging from 5.5 to 13.7% REO.

The Whitetail Ridge FMR mineralized zone may be the continuation of the Bull Hill Southwest deposit dike system, which trends northwesterly and is truncated, and possibly offset, by the West Bull Hill fault. Alternatively, it may be a separate rare-earth system with emplacement controlled by an east-northeast structural trend that is similar to one dominant in nearby Carbon Hill and along a graben-bounding fault that corresponds to the Whitelaw Creek drainage. This ENE structural trend may have had an influence on the emplacement of high-grade REE mineralization in FMR and carbonatite dikes and veins in Hecla drill-hole WP-2 in the Bull Hill Northwest target. More detailed field examination of the area is warranted, with the objective of determining significant structural trends that may guide drilling in the 2009 and 2010 drilling programs. Using an Exploranium spectrometer, ground geophysical surveys were undertaken over the Bull Hill Southwest FMR/carbonatite dike swarm for comparison with the Whitetail Ridge area. Both areas produced pronounced positive anomalies. The results of the Whitetail Ridge survey show an anomaly that trends about N40E, as well as two, more diffuse northwesterly trending positive anomalies. These data are consistent with the possibility that REE-mineralized carbonatite dikes were emplaced along a northeasterly trend that may be somewhat oblique to the ENE structural trend mapped in the general area and in trenches south of Carbon Hill.

To view Figure 1, click on the following link: http://media3.marketwire.com/docs/res1003F1.jpg

Historic drilling in the greater Whitetail Ridge area includes Duval Corporation drill holes WBR-4 and WBD-12, MolyCorp drill holes BL-1 and BL-3, and Hecla Mining Company drill hole WP-1. Drill holes WBD-12, BL-1, and BL-3 were all collared near the margins of the main Whitetail Ridge target area, whereas drill holes WP-1 and WBR-4 were collared in the central part of the area. Assay data are incomplete for some of these holes, but available REE assay and drill log data show that the area contains significant REE mineralization (Table 1).

Table 1.Historic data from drill holes in the Whitetail Ridge area
CompanyDrill HoleData related to potential REE mineralization
DuvalWBR-40-200' @ 1.29% REO; highest intercept 5' @ 7.82%
REO
DuvalWBD-12600-620', 20' @ 4.61% REO; 1380-1420', 40' @ 4.82% REO
MolyCorpBL-170-121', 51'@ 5.76% REO
MolyCorpBL-3340-370', 30' @ 6.41% REO
HeclaWP-1Entire hole (0-726') averages 1.86% REO; 0-430' @ 2.44% REO, includes 290-320' @ 5.28% REO and 401-411' @ 13.70% REO

The limited data suggest that the Whitetail Ridge area carries significant potential for FMR and carbonatite REE mineralization. However, results from the previous drilling indicate that the structural situation may be complex, and that more field work will be completed quickly in order to select drill sites this fall and to orient the drill holes properly for definition of the mineralized zone.

Rare Element Resources Ltd. (TSX VENTURE:RES) is a publicly traded mineral-resource company focused on rare-earth elements and gold. In addition to the REE exploration and evaluation efforts, the Company and Newmont have entered into the Sundance gold exploration joint venture on the Company's Wyoming property. Newmont has the right to earn a 65% working interest in Rare Element Resources' property, excluding any rights to the rare-earth elements and uranium but including rights to gold and other metals, by performing US$5 million in property work expenditures over a five-year period. Newmont also has the right to earn an additional 15% working interest by completing a positive project feasibility study. Gold exploration drilling began in July for the 2009 program, and rare earth drilling began in August.

ON BEHALF OF THE BOARD

Donald E. Ranta, PhD, PGeo, President & CEO

Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Company management, who take full responsibility for content.

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