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Rare Earth Metals Corp Regains 100% Option on its Lynn Lake , Manitoba
Nickel-Copper Property
5/12/06
May 12, 2006 (REM – TSX.V) Rare Earth Metals Corp. (the “Company”) reports that
project operator North American Palladium Ltd. (PDL.TSX, PAL.AMEX) has informed
the Company that due to a decision to concentrate solely on their more advanced
stage projects, it has elected not to renew its option to earn a 50% interest in
the Lynn Lake Gabbros property in Manitoba, Canada beyond May 30 th 2006.
Management wishes to thank North American Palladium for their important work in
advancing the project to its current stage and for the strong working
relationship developed over the past year.
Since optioning the Lynn Gabbros project in July, 2005, North American Palladium
has spent approximately $215,000 on exploration activities, including a high
resolution airborne survey, the refurbishing and cutting of 70 line kilometers
of grid control lines and a deep penetrating 3D IP ground geophysical survey.
Several new prospective anomalies have been identified following the preliminary
processing of the data. These IP anomalies appear to be related to sulphide
mineralization at depth, and of particular interest, they appear to be
vertically oriented bodies. This is important because the nickel-copper ore
bodies in the Lynn Lake nickel mine occur as vertically-oriented massive and
disseminated nickel-copper sulphide lenses.
Rare Earth Metals Corp is pleased with the winter work program North American
Palladium completed, as it has resulted in the identification of several new
prospective targets on its Lynn Lake Gabbros property. Vice President of
Exploration, Dr. George Gale says” While losing a partner with North American
Palladium’s expertise is disappointing, the timing is excellent for Rare Earth
Metals. The whole camp is alive right now as our neighbor, Seymour Exploration
Ltd. (TSX.V. SEZ) is very active with drilling and exploration on the old Lynn
Lake nickel mIne property. For us, the presence of a geophysical target at a
depth that is just below the level of penetration of geophysical methods used in
the early 1980’s is very encouraging. North American Palladium has provided us
with extremely helpful information on which to base our immediate plans in the
search for an economic nickel-copper deposit.”
Historically, Lynn Lake is the third largest nickel producing camp in Canada .
Sherritt Gordon Mines Ltd. mined the Lynn Lake nickel-copper deposits from
1953-1976. These mined deposits were discovered in two mafic-ultramafic
intrusive bodies, known as the “ Main ” and the “El” gabbroic plugs. The Main
and El gabbroic plugs produced 20,151,146 tonnes of ore at an average grade of
1.023% Ni and 0.535% Cu from three mines over the 24 year period. The five claim
blocks held by Rare Earth Metals total 2,796 hectares of land and cover the
known extent of five separate mafic-ultramafic bodies which have noted
similarities to the two mined gabbroic intrusions.
For more information call (604) 986-2020 or toll free 1-866-816-0118, or visit
www.rareearthmetals.net.
On Behalf of the Board of Directors,
Rare Earth Metals Corp
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