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SOUTH BAY, MANITOBA NICKEL-COPPER-COBALT-PGM-GOLD PROJECT: PARTIAL DRILLING
RESULTS
May 12, 2004
Rare Earth Metals Corp. (REM - TSX.V) the "Company" has received and interpreted
results from the first 12 holes of the South Bay, Manitoba winter drill program
completed on April 1st, 2004. A total of 2,717 meters of drilling in 17 drill
holes was completed in this first phase of exploration drilling.
The Company has an option agreement to acquire a 100% interest in the South Bay
Nickel-Copper-Cobalt-PGE discovery subject to a 3% NSR. The project is located
150 km northwest of Thompson Manitoba and approximately 60 km northeast of the
mining community of Leaf Rapids, Manitoba.
A preliminary review of the rock geochemical data has been completed by Dr. Mark
Fedikow P.Eng. P Geo., a Winnipeg-based consulting geochemist. The
interpretations herein are based, in part, on his observations.
The results to date, based on core logging and the geochemical analysis of core
samples collected from the first round of diamond drilling, indicate that the
high-grade Ni-Cu-Co-PGM-Au mineralization identified in outcrop was not
intersected in any of the samples received from the first 12 drill holes.
The rock unit which hosts the high grade-mineralization and was discovered in a
road cut has been identified in drill holes at various locations throughout the
2 km x 1 km grid area, including drill holes beneath and along strike of the
surface outcropping.
A prominent magnetic/electromagnetic anomaly crossing the South Bay grid from
east to west has been identified by phase one diamond drilling to be a sulphide
facies iron formation. This type of chemical sedimentary rock is a fundamental
requirement for the formation of large nickel sulphide orebodies. Such orebodies
are the result of the mixing of sulphur, derived from an iron formation, with
nickel contributed from an ultramafic magma to form nickel sulphide
mineralization.
Implications of Geochemical Results: Anomalous Ni values as high as 2500 ppm Ni
(O.25%) have been returned from a schistose rock unit. The trace element and
silicate whole rock geochemical analysis of two pyroxenite and one
biotite-phlogopite schist samples indicates the possibility that some of the
samples logged as schists or other hydrated phyllosilicate-dominated lithologies
are in fact altered pyroxenite or other mafic-ultramafic lithologies. Extensive
and intense alteration zones are commonly associated with mineralization and as
such may provide a vector to high-grade mineralization on the property.
Sample 31258 (biotite-phlogopite schist) has similar TiO2 (0.79%) and V (185 ppm)
contents as the two pyroxenite samples (31241 and 31267; 1.21 and 0.86% TiO2 and
271 and 205 ppm V, respectively). Recognition of highly altered "schists" as
altered ultramafic lithologies is believed to be significant in terms of the
metallogenetic implications for the property and may permit the recognition of
alteration zones associated with high-grade mineralization.
A zone of base metal mineralization, enriched in Ag, Cd, Pb, Bi and Zn, and
possibly of the distal massive sulphide type, is recognized from the geochemical
analysis of a sample of muscovite-rich metawacke intersected by the drilling at
South Bay. This mineralization could be indicative of a potentially significant
base metal mineralized zone that has not been previously identified at South
Bay. This style of mineralization was mined for many years at the recently
closed Ruttan Cu-Zn massive sulphide deposit located approximately 20 km west of
the property.
The company awaits the remaining assay data. Over 500 samples have been
collected and sent to Activation Laboratories. Partial results from 379 samples
have been received and the company's initial interpretation of those results is
reflected in this news release. Once the remaining assay data is reviewed by the
company, a further news release will be issued.
Once the entire body of assay data is compiled, the company will begin high
precision trace element geochemistry in order to elucidate more fully the nature
of the pyroxenite, ultramafic and mafic rocks intersected in the diamond
drilling program. The company then anticipates a summary review of all
interpreted data, which will include independent, experienced nickel exploration
geologists, to fully understand the scope of the South Bay opportunity.
Upcoming Exploration Activity: In early June, 2004 a program of geological
mapping and prospecting of the west and east grid line extensions cut in
January, 2004 will commence. This phase of exploration will include
reconnaissance geological mapping at 1:50,000 scale and prospecting and
geochemical sampling of the property. Areas of special interest discovered
during this regional reconnaissance will be mapped at a scale of 1:2000 and be
considered for follow-up exploration using Mobile Metal Ions soil geochemistry.
A number of priority areas will be targeted and include: a) the areas on strike
with the geologic package with the altered mafic/ultramafic schist which hosts
the known mineralization; b) a prominent linear magnetic feature mapped as a
mafic/ultramafic dyke which crosses the length of the property passing within a
kilometer of the present grid area; and c) the prominent fault feature
interpreted as the extension to the Johnson Shear zone which is a known gold
mineralized structure over 100 km in length
Upon completion of the surface field program and the comprehensive drill program
data review, the company will consider whether to employ a property scale
airborne geophysical survey as part of its property development strategy.
During a property visit in March, 2004 the drilling program was reviewed by Ed
Sawitsky, P. Geo. The operational procedures were found to be appropriate and
followed National Instrument 43-101 guidelines. All samples have been prepped
and analysed at Activation Laboratories (ACTLABS) in Ancaster Ontario.
Activation Laboratories is accredited by the Standards Council of Canada (SCC)
and is an ISO/IEC 17025 with CAN-P-1579 registered laboratory.
Samples were tested using a variety of techniques including Au + 48 Element INAA
+ ICP for the general geochemistry, Whole Rock Analysis-XRF to determine the
rock types and fire assay-ICP/OES for Platinum Group Metals.
The Company acknowledges the Manitoba Mineral Exploration Assistance Program and
the federal CEE tax credit program for their contributions towards exploration
at South Bay. For further information, please contact John Roozendaal, President
and CEO, Rare Earth Metals Corp. at (604) 986-2020 in Vancouver or toll-free @
866 816 0118.
Please visit the company website at www.rareearthmetals.net
On behalf of the Board of Directors
"John Roozendaal"
John Roozendaal
President and CEO
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