RARE EARTH METALS CORP.
TSX VENTURE : REM

RARE EARTH METALS CORP.

October 12, 2006 15:54 ET

Rare Earth Metals Corp. Updates Copper-Zinc VMS Exploration Progress, Snow Lake, Manitoba

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - Rare Earth Metals Corp. (TSX VENTURE:REM) October 12, 2006 (the "Company") is pleased to update the Company's progress exploring for copper-zinc deposits in the Flin Flon-Snow Lake VMS belt in Manitoba, Canada.

The summer 2006 exploration program focused on three of the seven distinct property blocks held by Rare Earth Metals Corp in the Flin Flon-Snow Lake VMS belt: Sails Lake, Reed Lake and the Nine Seven Zone.

Sails Lake consists of 8 claims covering 19 square kilometers and is located approximately 30 km from the mining community of Snow Lake; Reed Lake consists of 11 claims covering 20 square kilometers and is located 75 km by road from Snow Lake; and the Nine Seven Zone consists of 8 claims covering 13 square kilometers and is 80 km by road from Snow lake.

The target for the Snow Lake Copper Zinc Project is the discovery of a 5 million tonne Copper Zinc deposit in the eastern or Snow Lake region of the belt. The Flin Flon-Snow Lake VMS belt has yielded 24 producing mines averaging approximately 5 million tonnes and grading approximately 2% copper and 4% zinc. (http://www.rareearthmetals.net/prop-reedlake.html).

Vice-President of Exploration, Dr. George Gale, P.Eng., states, "The summer 2006 program was designed to provide the Company's geological field team the opportunity to closely examine these three claim blocks and focus on specific areas to determine their potential to contain copper-zinc rich Volcanogenic Massive Sulphide (VMS) type deposits."

The Sails Lake Project

Sails Lake was optioned because previous exploration, which targeted gold mineralization on the property, identified hydrothermal alteration commonly associated with VMS type mineral deposits. An airborne SPECTREM survey by HBED also revealed a number of anomalies that had not been previously investigated.

This summer's Sails Lake project had four main objectives: Investigate known mineral occurrences identified in the government Mineral Deposit reports and in assessment files that chronicle previous exploration work; determine which of the occurrences were related to volcanogenic massive sulphide deposits (VMS); map the areas around the VMS type alteration to determine its geological setting; and collect soil samples for geochemical studies along favorable strata.

Two of eight mineral occurrences investigated at Sails Lake exhibited strong VMS characteristics. The two occurrences are adjacent to a major linear feature that conforms to both a SPECTREM anomaly and rock strata. These occurrences were found to contain iron, copper- and/or zinc-bearing sulphide minerals. Rock exposures near the largest occurrence contain chemical sedimentary rocks (exhalites) that are typical of those associated with, and occurring on top of, VMS mineralization. The remaining occurrence is exposed in a small shallow trench in a swamp.

Detailed mapping of the rocks immediately north of the two mineralized zones revealed that they are predominantly layered mafic volcanic rocks and not intrusions as previously suggested. These rock units are 'right-way-up' and any associated extensive alteration zone will occur in the area south of the mineral occurrences that is now covered by an extensive swamp. The airborne anomalies occur at the southern margin of, or just within this layered sequence, which is significant as VMS deposits commonly occur at contacts where there are major changes in volcanic rock types. A previous Induced Polarization survey identified a conductive unit in the swamp approximately 50 m south of the known occurrences and it also parallels layering within the layered mafic rocks.

Additional grid lines were established in the vicinity of the VMS occurrences and an untested airborne conductor. 125 soil samples were collected at 25 m intervals along lines spaced 100 m apart to determine if there are zones of metal enrichments along the length of the conductive unit.

The soil analytical data has recently been received and is being interpreted. It is apparent from the raw data and initial interpretation, that there are two areas along the conductor with highly anomalous values in Cu, Zn, Ni, Pb and other elements. These data suggest that there are base metal-rich zones along this conductive unit and mineralized horizon.

This summer's program confirmed the presence of two VMS occurrences on the relatively small portion of the property investigated and established that the geology is favourable for hosting VMS mineralization.

The Reed Lake Project:

The Reed Lake claim group was the first VMS property acquired by the company in early 2005. Earlier geochemical studies of exhalites and rhyolitic rocks from two holes put down on SPECTREM and ground electromagnetic conductors on the Reed 1 claim indicated that the area was underlain by favourable geology. It also showed that these rocks are not only altered, but also contain pathfinder elements commonly associated with VMS deposits. Extensively altered rhyolite immediately below the sulphide-bearing conductor has not been drilled and is highly prospective. The remainder of the project area is considered to have additional VMS potential due to the presence of other drill intersections of VMS type mineralization, which occur in the western part of the property. In addition, the property partly surrounds, and contains rocks similar to those found at the Freebeth VMS zone, which is owned by HudBay Minerals Inc.

The objective of the 2006 summer program at Reed Lake was to establish the presence of base metal anomalies associated with the Reed 7, Tower and Reed 1 conductors.

These conductors vary in length from a kilometer to several kilometers and so it is necessary to target the specific portions of the conductors having an associated metal enrichment to increase the potential of intersecting economic mineralization at an early stage of exploration. The Company conducted a successful orientation geochemical survey over a portion of the Reed 7 claim in 2005. These data identified anomalous zinc in soil over a 2 km long conductor, which was previously investigated with one drill hole that intersected 'near solid sulphides' with minor zinc mineralization. In 2006, soil samples were collected along the length of this conductor.

At the 'Tower Anomaly,' a 2005 orientation survey revealed a multi-sample Au anomaly in an area where there was an untested electromagnetic anomaly. In 2006 soil samples were collected over a 600 x 400 m grid as anomalous gold is commonly present at the edge of VMS deposits.

A 2005 soil geochemical survey on the Reed 1 claim revealed moderate to strong zinc anomalies in peat immediately north of the undrilled portion of the conductor. Additional samples could not be collected in 2006 in this area because of high water levels on Reed Lake.

Each of these geochemical surveys targeted known geophysical conductors in volcanic rocks that underlie the flat-lying limestones. Samples have been prepared and submitted for analyses. The analytical data received to date indicate the existence of base metal anomalies on both the 'Tower Anomaly' and the Reed 7 geophysical targets.

The Nine Seven Zone Project

The Nine Seven Zone is located approximately 5 km south of the Paleozoic limestone - volcanic rock contact and approximately 5 km southwest of the Reed Project. A number of geophysical conductors occur within a 3 km long unit of felsic and mafic volcanic rocks that occur beneath approximately 30 m of flat-lying limestone. VMS type mineralization with low values in copper- and zinc were identified in four holes drilled at two sites in 1974. Drill cores from two of the anomalies are stored in the Manitoba Government core library. These were sampled and analyzed for pathfinder elements that occur in association with base metal massive sulphides. The data indicates that concentrations of base metals may occur along these same horizons and it is possible that the bore holes may have intersected the margins of a VMS mineralized system.

The summer 2006 geochemical program targeted geophysical anomalies discovered in historical data sets, which were compiled and researched over the winter from technical reports for the area. The Nine Seven zone was the last property to be sampled this field season and the results of the program are pending. The program targeted geophysical anomalies in the dry accessible portions of the claims.

Dr. Gale says, "Results from the Reed 7, Tower and Nine Seven sites will be used to formulate a contemplated 2006-2007 winter drill program. As well, we are investigating several high resolution airborne geophysical methods to help refine priority targets for drilling, identify new targets and to assist preparations for geological mapping of areas not reconnoitered this summer."

The Company is investigating additional opportunities to expand our existing land package in the prolific Flin Flon-Snow Lake VMS Belt.

All technical information in this release has been reviewed by Dr. George Gale, P.Eng, Vice President of Exploration, Rare Earth Metals Corp.

Rare Earth Metals Corp is acquiring, exploration and developing copper-zinc properties in the Flin Flon-Snow Lake VMS Belt. The Company's other projects include the Lynn Lake Gabbros nickel-copper properties in Lynn Lake Nickel Belt, the South Bay nickel-copper-cobalt PGE property, and the Eden Lake Carbonatite Complex, Specialty Metals property. All properties are located in the mining friendly province of Manitoba, Canada.

ON BEHALF OF THE BOARD OF DIRECTORS

John Roozendaal, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Rare Earth Metals Corp.
    John Roozendaal
    President
    (604) 986-2020 or Toll Free: 1-866-816-0118
    Website: www.RareEarthMetals.net