Ucore reports positive recoveries from Bokan Mtn REE project

Vancouver – Metallurgical testing on Ucore Rare Metals’ (UCU-V) Bokan Mountain project in southeastern Alaska has shown encouraging recoveries for both light and heavy rare earth elements.

The company tested a composite from 79 samples drilled at the project, with 1.19% total rare earth elements, including 0.48% heavy REEs and 0.71% light REEs (plus yttrium in all categories).

The results show recoveries of between 85% and 90% for total REEs, with light REE recoveries at 94% and 87% in the two tests, and heavy REE recoveries flat at 84% for both. The tests varied in the amount of acid added, the grind size and acid consumed.

In early August the U.S. Department of Agriculture, through its U.S Forest Service division, granted priority permitting for the Bokan Mountain project, which the company states will reduce permitting time by a year or more. The status also allows Ucore to start helicopter-assisted exploration in the region immediately, and makes resource development a priority for permitting in the area.

“This initiative is a tremendous lift for expedited development at Bokan,” stated Jim McKenzie, president and chief executive officer of Ucore. “The Bokan heavy rare earth resource is now recognized as a unique American asset of critical importance to domestic technology, defence and alternative energy sectors.”

The 30-sq.-km Bokan Mountain project, on Prince of Wales Island in the Tongass National Forest, is near deep-sea water and 130 km northwest of Prince Rupert, B.C. The site was previously mined for uranium as the Ross Adams open pit and underground mine between 1957 and 1971, with a road network and two accessible min haulage levels still intact.

In March UCore released an inferred resource estimate for the project that outlined 3.7 million tonnes grading 0.75% TREO, made up of 38.6% heavy REO, for a total of 60.3 million lbs. TREO using a 0.5% TREO cut-off.

The company, with the catchy motto “America’s dysprosium leader”, emphasizes the relatively high percentage of the more valuable dysprosium, terbium and yttrium elements that are in higher demand and command a higher price. In July dysprosium was trading near $3,000 per kg and terbium at $4,500 per kg. For the 3.7-million-tonne resource, dysprosium oxide constituted 0.29%, terbium oxide 0.05% and yttrium oxide 1.88%.

The resource is located in the Dotson I&L zones, starts at surface, and is open at depth and to the east. It was based on roughly 8,700 metres of drilling, while the company has since recovered 4,000 metres of historic core from the project drilled in the 1970s and is working through an $8-million 2011 field program on the project to improve the resource and advance a scoping study.

A 1989 U.S. geological survey, meanwhile, estimated the area could still hosts roughly 11 million lbs. of uranium as well as rare earth elements. An historic, non-compliant resource was established at the time that estimated the area hosted 374 million lbs. of TREO.

On the other side of the continent, Ucore recently revised the terms to sell part of its Bottom Brook REE property in western Newfoundland to Kirrin Resources (KYM-V). Kirrin can earn 50% of the project by spending $2 million on exploration by the end of 2014 and issuing Ucore 300,000 shares. Kirrin has already met roughly half the requirements.  The best intercept at Bottom Brook was a 5.6-metre interval grading 4.47% TREO, with a heavy to total rare earth oxide ratio of 9.2%.

Ucore’s share price closed unchanged at 46¢ on the metallurgical results. The company has a 52-week share price range between 36¢ and $1.28 and 151.4 million shares outstanding.