EDITOR: | September 12th, 2014 | 14 Comments

U.S. Rare Earths approved to start rare earths production immediately!

| September 12, 2014 | 14 Comments
image_pdfimage_print

US-Rare-EarthsAs of today, U.S. Rare Earths, Inc. (‘USRE’, OTCBB: UREE ) can start mining and producing rare earths at its Last Chance Project in the Lemhi Pass region of Idaho and Montana. USRE announced that it has received approval to re-open its historic tunnel work, speeding up the production process by at least three years, which is literally at least two years ahead of the closest competitor. USRE had expected to start processing by 2017 but thanks to the permission to revisit the existing adits (extending underground more than 400 meters, which have already proven to contain mineralized veins of critical rare earths), it can proceed much earlier; it can proceed now!

USRE said this accelerated development will enable it to save some USD$ 6 million in CAPEX while having being approved to handle 2,500 tons of metallurgical sampling starting now; it also has the rights to apply for the removal of an additional 7,500 tons of material for metallurgical sampling under Montana state exploration guidelines. The horizontal adits, tunnels, lead underground and giving access to subsurface mineral deposits, intersecting the Last Chance Vein. The historical record shows that these have known and high rare earth mineralization occurrences. Moreover, as a result of USRE having been approved by the U.S. Forest Service to access an REE stockpile located on its Last Chance prospect last August, the Company can get a head start on processing with zero CAPEX and OPEX costs.

The stockpile lends itself to prompt metallurgical sampling and USRE suggests the “stockpile contains at least 10 to 12 tons of highly concentrated rare earths enriched material”. This would make USRE “the first company to proceed with rare earth underground exploration and sampling in the continental United States” at far lower cost than anyone could have envisaged. “U.S. Rare Earths is very excited with the achievement of this milestone with the prospect of being the first underground mine since the 1960’s in the US to remove rare earth material,” said Kevin Cassidy, CEO of U.S. Rare Earths.

USRE has the luxury of being able to concentrate on the processing and metallurgy, rather than the exploration thanks to its readily available stockpile. Idaho Energy and Resources Co. extracted the material as part of rare earths exploration and its published data suggests that the stockpile presents a high percentage of heavy and critical rare earth elements. The rare-earth deposits were first explored by the U.S. Geological Survey as well as the Idaho Bureau of Mines and Geology and IERCO among others. USRE can rely on a very experienced management and exploration team with many and successful years of experience in the sector and their determination to create an wholly American complete supply-chain solution, which will include a separation mill for the critical and heavy rare earth elements in the continental United States.

Rare earths and other minerals are essential to the American defense industry and their supply, most of which comes from China, is wrought with uncertainties die to opaque political regulations and an ongoing reform of the mining industry system. Japan, for example, was deprived of rare earth elements in its maritime dispute with China in 2010, and has since feared further disruptions, leading to plans to source these important minerals elsewhere. The United States wish to prevent this risk, given the dire consequences that could result from the sudden imposition of crackdown The Armed Services Committee of the House representatives has issued various reports since last year, presenting the risks of rare earth shortages in severe terms and scenarios. One of these is a Chinese embargo on exports of key rare earth elements and notes that in the current situation the United States would be paralyzed. The current and deepening dispute between NATO and Russia, evoking the gloomy relations of the Cold War, has added more tension to relations between NATO and China. Advocates of increased American self-reliance in the supply of critical materials suggest that it is not always safe to rely on our neighbors for the supply. Currently, the world rare earths market has become extremely asymmetric because China provides more than 90% of these minerals. Japan has already decided to secure a minimum of 60% of its rare earths supply from countries other than China within the next four years. Possible sources include India and Australia; however, it can now consider the United States as well, given USRE’s accelerated development.


Editor:


Copyright © 2017 InvestorIntel Corp. All rights reserved. More & Disclaimer »


Comments

  • JOE O

    so basically the molycorp route selling the old stockpile?

    September 12, 2014 - 4:29 PM

  • Ricksan

    What do you mean

    September 12, 2014 - 5:01 PM

  • Jim

    How does Quest or Northern Minerals compare to this? With QRM, I see huge resource with large Capex, far away,etc..
    NTU, I see smaller resource, smaller Capex, but far away..

    Thanks

    September 13, 2014 - 1:09 PM

  • Joe o

    Qrm had an interesting update last week. Haven’t heard any comments on them. Would like to hear what some of u may think. There Market cap is down to like 18 million now. May be worth a gamble just to see if if they can ever get some financing or government backing way down the road. Like 2020

    September 13, 2014 - 1:19 PM

    • Tracy Weslosky

      Great question Joe O, but confusing to our readers here as this is a story on US Rare Earths news that was breaking yesterday titled: U.S. Rare Earths Last Chance Mine to be First in the US Since the 1960s to Provide Underground Mined Rare Earth Deposit Material (link for ease is as follows http://bit.ly/1qsaozP). This news release has been a welcome surprise for many of us in the sector, as we are delighted that management from US Rare Earths is dedicated to North American sustainability issues related to rare earths. Thank you for visiting.

      September 13, 2014 - 4:43 PM

  • Sunnyvale

    I have been following this story today. Unless i’m going nuts, there were atleast 12 comments, including the input of Mr. Hatch. It focused on the “degree of optimism” of the written piece. Now there are only 5 comments with the criticism missing and no explanation. For me, this type of action lowers the credibility of the site.

    September 14, 2014 - 3:31 AM

  • by the light of philosophy

    @Sunnyvale – welcome to the world where advertising fees are paid for the purpose of promotion

    if you want free speech go down to the corner and get up on your soap box – or better still set up your own website

    September 14, 2014 - 6:48 AM

  • Tracy Weslosky

    We are the best FREE site in the world on rare earths that utilizes some of the best analysts, leaders in the industry and top journalists in our sector. Your more consumed with the thread underneath the story then the very exciting news that Alessandro Bruno writes above. So if you would like to thank our team, which I would like to do and do everyday — your welcome.

    As for the threads that you maintain were here…sometimes people take down there own comments and as a result other threads are removed as they then do not make sense. Your jumping to the wrong conclusion, and I contemplated taking yours down because it shows no effort at understanding and an intent to be negative without cause.

    This is a site for investors seeking education, information and debate — again, your welcome. As Bon Jovi said it in one of his singles: “Have a Nice Day.”

    September 14, 2014 - 9:48 AM

  • The Critical Investor

    @Sunnyvale and especially Tracy: the misplaced degree of optimism for this “development” is indeed remarkable, and harms the credibility of this site in my opinion. Everybody in this industry knows US Rare Earths doesn’t even have a NI43-101 inferred resource, no study whatsoever, is just an OTC stock so doesn’t report up to standards. I found this article actually to be almost an insult to most other, far more advanced, serious projects, to suggest UREE could really beat those others in the race to commercial production.

    September 16, 2014 - 11:35 AM

    • Tracy Weslosky

      CI. We have an excellent track record of coverage and monitoring ill-intended commentators. You have a blog your promoting, I get this….but go play in your own sandbox. I look forward to your apology, and indeed there will be one coming. PS. would you like me to recommend some other sites that you can go judge since you have been awarded this role by …. hmmm, ah yes: cannot even use or disclose your own name. Warning #2.

      September 17, 2014 - 1:17 PM

  • Jeff

    Coming back to this article has me a bit confused, the optimism of the article was balanced out by critical input of the readers when I combed this over earlier today.

    September 16, 2014 - 5:27 PM

  • GoBucks

    I don’t get it.

    Give ’em a break, folks.

    USRE gets the green light to do some digging. That’s good news in itself, whether or not the deposit actually pans out.

    Maybe they’ll succeed, maybe they won’t.

    At least, now, they’re getting their shot.

    Better be enthusiastic until the facts dictate otherwise. Because if you’re not enthusiastic about what you’re doing, you are guaranteed to fail.

    September 22, 2014 - 10:22 AM

  • Russian grant revs Stans Energy while battery market fuels Stria Lithium | InvestorIntel

    […] U.S. Rare Earths approved to start rare earths production immediately! – Alessandro Bruno […]

    September 22, 2014 - 1:40 PM

  • Market Movers of the Week: Stria Lithium +16.67%, Energizer Resources +11.11% & Mason Graphite +10.71% | InvestorIntel

    […] U.S. Rare Earths approved to start rare earths production immediately! – Alessandro Bruno […]

    October 13, 2014 - 11:46 AM

Leave a Reply

Your email address will not be published. Required fields are marked *