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Rare Earth Metals Corp reports Acquisition of Cu-Zn VMS Property,
Snow Lake , Manitoba
3/15/06
Rare Earth Metals Corp, (REM – TSX.V), March 15, 2006 (the “Company”) is pleased
to announce the acquisition of its second Copper-Zinc VMS property option in the
Snow Lake area of Manitoba, Canada. The Sail Lake property, covering an area of
18.88 square kilometres, hosts a recently recognized alteration zone typical of
VMS deposits, which has coincident ground and airborne geophysical anomalies.
This area of the property will be the initial focus of exploration by the
Company.
The Sail Lake property is situated approximately 30 km from the mining community
of Snow Lake , Manitoba within the Flin Flon-Snow Lake Greenstone Belt. This
Greenstone Belt is one of the largest Proterozoic volcanic hosted massive
sulphide (VMS) districts in the world and has produced over 160 million tonnes
of copper-zinc ore from 24 deposits. The deposits of the belt average grades of
approximately 2.5% copper and 4.5% zinc and are known for their significant gold
and silver credits.
The Company’s new focus on VMS exploration is being led by Dr George Gale, VP
Exploration. Dr Gale has over thirty years experience in evaluating areas in
Manitoba with potential to host VMS deposits. As former head of the Mineral
Deposits Section of the Manitoba Geologic Survey, Dr Gale led the effort to have
most of the known base and precious metal deposits in the province investigated
in detail.
The Sail Lake property is an advanced exploration project with several historic
data sets including drilling information available to the Company through
government assessment files. The information from the previous programs enables
Company geologists to focus on specific target areas. Exploration programs for
massive sulphides were conducted on the property in 1957 by Selco and in 1967 by
HBED. Both of these companies drilled several short holes on separate
electromagnetic conductors, but most of the 10 conductors identified on the
property remain untested. In 1987, mapping by ESSO Minerals Canada located
felsic volcanic rocks, in the eastern part of the current claims. Felsic
volcanic rocks are intimately associated with VMS deposits of the belt.
Company geologists are also encouraged by the number of mineralized occurrences
on the property including gold mineralization. The Sail Lake Property was
examined for precious metals in the 1920’s and gold values of up to 31 g/t were
obtained in grab samples. In 1995 TVX undertook a gold exploration program and
drilled six holes on various gold-bearing stockwork occurrences. They identified
a number of oxide and sulphide iron formations and undertook geochemical
orientation studies that identified a number of untested anomalies.
The work by TVX also documented a number of occurrences of chalcopyrite and
sphalerite in garnet-anthophyllite rock that is depleted in Sodium. This type of
rock is typically found in zones of metamorphosed alteration beneath massive
sulphide ore deposits in the Flin Flon-Snow Lake mining camp. Banded sulphides
with copper and zinc occur in a shallow trench adjacent to this zone of
alteration. This zone of altered rock has not been drilled and occurs below a
known ground electromagnetic conductor and in the vicinity of a conductor
identified by an Anglo-American SPECTRUM survey of the area. Another occurrence
on the property has minor (<2%) chalcopyrite in altered rhyolite in an area of
altered basalt.
The Sail Lake property occurs in the exposed portion of the greenstone belt and
north of the Company’s land holdings in the area targeting the southern part of
this prolific belt, which is covered with a thin layer of flat-lying limestone.
The limestone covered area is referred to as the sub-Paleozoic portion of the
belt and it is considered one of best areas in Canada to explore for new VMS
deposits.
The Sail Lake property was acquired by optioning the ARSE 1 claim from Ken de
Graff and staking 7 additional claims surrounding the core claim covering a
total of 18.88 square kilometres. The Letter of Intent outlines terms for an
option agreement whereby the optionee (REM) will earn an 80% ownership in the
claims through fulfillment of a schedule of property payments totaling $32,500
and expenditures of $750,000 over a 5 year period. The Company may acquire the
remaining 20% to hold a 100% ownership in the property for a further payment of
$1,000,000. The property is subject to a 3% NSR which may be purchased down to a
1.5% NSR for $1.5 million. Rare Earth Metals Corp has acquired, through staking
and property option agreements, a large strategic land package covering areas
interpreted to host favourable geology for VMS copper-zinc deposit formation.
The Company plans to undertake detailed geological mapping and geochemical
surveys in the areas of known altered rocks and in the vicinity of all known
geophysical conductors during the early part of the summer. Compilation of all
available historic data is underway. It is anticipated that a drill program will
be undertaken during late summer or early autumn.
All technical information in this release has been reviewed by George Gale PhD,
P.Geo, Vice President Exploration, Rare Earth Metals Corp.
ON BEHALF OF THE BOARD
John Roozendaal
President, Director
For further information, please contact:
John Roozendaal at (604) 986 2020 or Toll Free 866 816 0118
or visit our website
www.RareEarthMetals.net
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this news release.
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