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Why Eden Lake?
The Company optioned the Eden Lake REE-Uranium property to
participate in the highly specialized, but extremely valuable, rare earth
elements / minerals market. The 16 Rare Earth Elements (REE’s) are essential
ingredients for a variety of materials used in leading edge technologies and
industrial products important to the industrialized world. Further,
approximately 90% of North America ’s REE’s are sourced from China, so a viable
North American deposit would have significant political and strategic
importance.
Initial Discovery
During the 2002 summer program Dr. Hamid Mumin
(Brandon University), and colleague John Camier M.Sc. (South Bay Exploration
Ltd.), discovered Manitoba’s first Carbonatite complex on the property. In 2003
the most significant discovery was an extra-ordinary rare metal vein complex
exposed sporadically over an area of at least 2 km by 150 meters. Thirty-five
samples of vein material averaged 49,687 ppm (4.97%) rare metals (REE + Y + U +
Th). Both the vein complex and carbonatite are potential targets for diamond
drilling.
Exploration History
The first drill program at the Eden Lake was completed in March 2006. Six
drill targets were tested. The targets were selected using various criteria
including their geochemical signature, magnetic field reading, and their
location within low ground, along prominent linear features which cross the
property and may control the emplacement mineralized bodies. The initial
drill-core was logged and sampled at the Company’s facility in Leaf Rapids,
Manitoba and samples sent to a certified Canadian laboratory for analysis under
the direction of Dr. George Gale, P Eng. Qualified Person.
The drill program resulted in the intersection of veins and lenses with rare
earth bearing apatite in four holes. Multiple veins of apatite-bearing
carbonatite occur with a zone of carbonate altered rocks that are in excess of
50 m of core length in hole EL-06-03. These drill holes are interpreted to have
intersected the uppermost portion or the margin of a carbonatite body.
Although no economic grades of mineralization were intersected, the 2006 drill
program confirms that carbonatite is more common in the topographically low
areas of the property and contains rare earth-bearing apatite. Five of the holes
intersected altered (fenitized) rock, which is a common alteration at the edges
of carbonatite masses. The drill program was able to test 5 of the 10 anomalies
identified from the exploration work done to date. The drill results establish
that the carbonatite magma intruded late in the history of the Eden Lake igneous
complex and that the mineralization discovered to date, represents the
upper portions of a carbonatite magmatic system.
The Future
The drill results provide a framework for further evaluation of the vegetation,
soil and rock data collected over the property. This review will help in the
planning the next phase of exploration. The Company is also exploring opportunities to Joint
Venture the property with a suitable partner.
For more information about Rare Earth Elements and
their uses go to
http://pubs.usgs.gov/fs/2002/fs087-02/.
Value
Proposition
These metals are more difficult to value than
base or precious metals. Using values for processed refined metals gathered from
publicly available documents provides some context for the potential value. All
numbers are based on processed purified metals.
Gross Metal Value (GMV)
Eden Lake, Manitoba Target: Large Tonnage Deposit 100 mil tonnes or greater in
size.
The total Gross Metal Value of the metals in an Apatite Concentrate grading 2.5%
~ $11,000/t.
REE Vein sample ~ $62,000/t Gross Metal Value of combined elements refined.
Mean grades of 30 separate REE Vein samples ~ $21,000/t (GMV)
As a comparison, using a common metal such as Copper in a 28% concentrate,
approximates (2000lb at a grade of 28% Cu) or roughly $1100/t Gross Metal Value.
These metals, if discovered in economic
concentrations and volumes, have the potential to add tremendous value to the
Company.
Disclaimer: This value will,
obviously, be discounted significantly, as it represents the value of metal
prior to all the costs associated with mining, but we provide it to give
readers some context; |
