Butler Resource Corp.

December 01, 2009 09:30 ET

Butler Resource Corp.: Trench Sampling at the Archie Lake Property Confirms Historic Assays, Returns High Rare Earth's Plus Yttrium Values

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2009) - Butler Resource Corp. (TSX VENTURE:BTD.H) (the "Company") is pleased to announce the results of the fall 2009 exploration and sampling program, at the Archie Lake Rare Earth Property.

At Archie Lake, Rare Earth Element (REE) mineralization is contained within a meta-sedimentary horizon believed to be of paleo-placer origin. The mineralized horizon is up to 6 meters across, and has been historically traced for nearly 600 metres along strike.

During early October, a total of 36 rock samples were collected from six historic trenches and one small blast pit at the property. Samples were sent to Acme Analytical of Vancouver, BC (Acme) for whole rock and trace element analysis with rare earths determined using ICP-MS. Check analysis was performed by AGAT Laboratories Ltd. (AGAT), Mississauga, ON, and the Saskatchewan Research Council (SRC), Saskatoon, SK using an ICP-OES method capable of achieving higher detection limits on a subset of the original 36 samples.

Mineralization was confirmed in all six trenches plus one small unnamed blast pit. As reported by Acme, one chip sample returned a high of 29.9% REE+Y (Semi-Quantitative Analysis). A total of five samples exceeded Acme's detection limits for one to four of the lanthanides (Ce, La, Nd, and Pr). Two of these samples exceeded 15% total rare earths plus yttrium (REE+Y). Of all 36 samples analyzed, a total of 18 samples exceed 2% REE+Y, six exceed 5% REE+Y with three exceeding 10% REE+Y. The peak value was comprised of nearly 60% monazite representing a highly mineralized pod within the overall zone.

The maximum value of 29.9% REE+Y reported by Acme, was reanalyzed by AGAT as 21.1% REE+Y, and 29.2% REE+Y by the SRC. All other check samples were within acceptable limits.

A complete sample section across the mineralized zone was obtained in Trench 'c'. Semi-continuous chip sampling across an approximate 5 m width returned 5.9% REE+Y.

Preliminary thin section work has been completed on select samples by Allison Brand of Mackevoy Geosciences Ltd. It was determined that monazite-(Ce) is the near exclusive contributor to the mineralization, dominated by Ce, La, Nd and Pr.

Several hand samples have been sent to Dr. Tony Marino for further thin section analysis and mineralogical description. Once complete, a report will be drafted detailing the findings and will be integrated with previous work.

Approximately 250 metres of the mineralized zone was traversed by the field crew during the fall 2009 exploration. Several trenches to the northwest, with historic mineralization reported, were not visited. Thus, the potential to extend the zone, and trace the mineralization over several hundred metres remains a strong possibility. The mineralized horizon approaches widths of six metres as evident in one trench and has not been tested at depths beyond the surface blasted of trenches.

The 2009 exploration focused on re-sampling historic trenches and did not allot much time to tracing the mineralization between the trenches. Further evaluation is required; however, indications for persistent mineralization are considered very good, as several samples collected between the trenches analyzed several per cent rare earths.

An independent 43-101 report is currently being prepared by Darren L. Smith, P.Geol of Dahrouge Geological Consulting Ltd. and Qualified Person for the Archie Lake Property. Upon completion of the report the Company intends to seek approval from the TSX Venture Exchange (the "Exchange") to reactivate its business and graduate from the NEX Board to the Exchange as a Tier 2 Mining Issuer pursuant to Policy 2.6.

"We are very encouraged by these results, and look forward to additional work on this project over the winter months in accordance with recommendations included in the 43-101," according to Butler President and CEO, Peter Dickie.

With these results, the Company anticipates receipt of a NI 43-101 report on the Archie Lake property within the next week. Upon completion of the NI 43-101 report and the private placement described in the Company's news release dated October 7, 2009 (for which the Company has received conditional approval), the Company intends to seek approval from the TSX Venture Exchange (the "Exchange") to reactivate its business and graduate from the NEX Board to the Exchange as a Tier 2 Mining Issuer pursuant to Policy 2.6.

On Behalf of the Board,

Peter Dickie, President

"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

  • Butler Resource Corp.
    Peter Dickie
    President and CEO
    (604) 669-9330
    (604) 669-9335 (FAX)