Oct 9 2012
U.S. Rare Earths, Inc., "USRE," announced today the results of a review of its Diamond Creek (Idaho) deposit, based on historical studies supplemented by recent field work.
The review, conducted by James Hedrick ("Hedrick Assessment"), head of the USRE Advisory Board, builds on U.S. Geological Survey (USGS) reports that indicate a total probable potential resource of 68,495 tons of REO (Rare Earth Oxide) in Diamond Creek.
In addition to its Rare Earths findings, the USGS reported gold contents at Diamond Creek of 0.583, 2.40, and 11.931 g/metric ton (0.017, 0.07, and 0.348 oz/short ton) from samples cut across one of the larger veins. A high of 102.857 g/metric ton (3 oz/ton) of gold has been reported for one of the veins by the U.S. Atomic Energy Commission (now the Nuclear Regulatory Commission).
All of the data will shape the Company's planned drill program.
The historic USGS study considered three of the larger veins in the Diamond Creek District mineable, from which it estimated a total reserve and a probable potential resource based on anticipated mining and processing costs and estimated 11,067 t of ThO2 of the total probable potential resource could be processed for less than $15/lb (historical) containing 57,154 t of REO based on equivalent uranium mining and milling practices and prices of the day.
While the Diamond Creek deposits historically have been referred to as thorium resource veins, the deposits are more accurately termed iron-rare earth-thorium-gold (Fe-REE-Th-Au or FRETA).
As the Hedrick Assessment notes:
"Three recently discovered veins at Diamond Creek, located by Rich Reed of Idaho Engineering and Geology, contain particularly high-concentrations of rare earths and contain relative enrichment of mid-atomic numbered and heavy rare earth elements."
The study estimates the Diamond Creek deposit contains over 4,700 mt of yttrium, and over 1,300 mt of dysprosium, while the overall REO content averages 25% neodymium.
Diamond Creek is one of four deposits the Company has under claim in Idaho and Nevada.