Midland posts new assays for Ytterby REE project

A report in The New York Times that China is further restricting exports of rare earth elements (REE) starting from Oct. 19 plays into the hands of juniors exploring for the valuable minerals in Canada.

Midland Exploration (MD-v) released new assay results on Oct. 20 from two recent discoveries made on its Ytterby 2 and Ytterby 3 REE properties in Quebec. The discoveries are about 65 km and 100 km, respectively, south of Quest Rare Minerals’ (QRM-V) Strange Lake B-Zone REE project area.

At Ytterby 3, these assays bring to 53, from 26, the number of new mineralized prospect areas with more than 1.0% total rare earth oxides (TREO). The results varied from 1.03% to 7.94% with a 2.87% average TREO. From this group, 19 samples averaging 4.95% TREO, have 2.37% cerium oxide, 1.23% lanthanum oxide, 0.78% neodymium oxide, 0.11% yttrium oxide (Y₂O₃), 0.24% praseodymium oxide, 0.054% gadolinium oxide and 0.027% dysprosium oxide.

Most of the samples were taken from the northern end of the Ytterby 3 property, where iron oxide pods and pegmatites hosted in alkaline granite have been outlined (discontinuously) over a surface area of 1.75 sq. km.

On Ytterby 2, the new assays bring to 19 the number of new mineralized prospect areas with TREO values varying from 0.3% to 18.0%. The heavy rare earth oxides (HREO) content represented 3.24% to 12.1% of the TREO plus Y₂O₃, but with the latest assays, a new area rich in HREO has been defined with 56% to 83% HREO of the TREO plus Y₂O₃.

Individual heavy rare earth elements analysis returned 0.036% dysprosium oxide, 0.035% ytterbium oxide and 0.28% yttrium oxide.

Midland collected more than 585 samples during a summer field program and has released 470 assays results so far.

Now the company is interpreting data from airborne and ground magnetic and radiometric surveys of Ytterby 2 and 3 that will enable it to select the best follow-up targets. A second phase program of geological mapping and geochemical sampling will be followed with diamond drilling.

Midland Exploration’s partner, Japan Oil, Gas and Metals National Corp. (Jogmec) has the option to acquire a 50% interest in the Ytterby project before March 31, 2012, if it spends $2.5 million on exploration, including $1 million on work expenditures during the first year.

Midland will be operator as long as it holds an interest in the project that is equal to or higher than 50%. Jogmec also has the right to transfer its interests in Ytterby to other Japanese companies or a consortium of Japanese companies.

Jogmec was set up in early 2004 with a mandate to invest in mineral projects worldwide that will provide the Japanese industry with a reliable supply of natural resources.

At presstime, Midland Exploration was trading at $1.75, within a 52-week range of $1.10-$2.00.