Texas Rare Earth Resources Provides Mineral Property Overview and Updated Assessment of Round Top Project
December 10, 2012 (Source: Marketwire) — Assessment Reveals Over 1 Billion Metric Tonnes of Measured Resources Containing Over 1 Billion Pounds of Rare Earth Metals Including Uranium
Texas Rare Earth Resources Corp. (OTCQX: TRER) (“Texas Rare Earth”), a heavy rare earths exploration and development company, today provides shareholders with a mineral property overview and updated assessment of its Round Top Project.
Texas Rare Earth is a mining company engaged in the acquisition, exploration and development of mineral properties. The Company’s principal focus is to explore, develop and extract rare earths from the 950 acre Round Top lease located in Hudspeth County, Texas. Round Top is one of four principal rhyolite bodies, an igneous volcanic rock, making up the group of mountains known as The Sierra Blanca. In addition to the Round Top Project, the Company also owns title to twelve unpatented mining claims, the Macho group, comprised of 240 acres the Old Dude Mine, located in Sierra County, New Mexico as well as another eighteen unpatented mining claims, the HA group, comprised of 274 acres in the Graphic Mining district some 10 miles to the southwest of the Macho District.
A June 15, 2012 Preliminary Economic Assessment (“PEA”) was conducted by Gustavson Associates, an independent third party oil, gas and mining consulting firm with over 30 years of extensive international experience. The Assessment found that utilizing the first 35 of 65 drill holes and portions of the 82,000 feet of historical drilling, there are an estimated over 1 billion metric tonnes of measured, indicated and inferred resources* containing 531 grams per tonne or over 1 billion pounds of rare earth elements (“REE”).
Among other REE, the PEA highlights uranium contained among other assets.** The Company is currently working towards documenting this preliminary mineralization estimate as a mineral resource.
Dan Gorski, CEO, stated, “There is tremendous untapped rare earth element value within our Round Top Property. Our metallurgical research is moving forward at an accelerating pace and we are confident that a practical and economically viable flow sheet will be developed. We also are confident that because Round Top contains a high percentage (70%) of the less abundant ‘heavy’ rare earth elements, principally Dysprosium and Yttrium that this deposit, if and when developed, will in time replace the depleting South China clay deposits as the principal source of these strategically vital metals. Texas Rare Earth will be systematically providing the market with new research, analysis, economic developments and strategic initiatives going forward.”
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Texas Rare Earth has no intentions within the next twenty four months to conduct more physical exploration of Round Top, as the over 1 billion metric tonnes of resource is adequate for any future economic projection. We do however believe that there are untested exploration targets present including uranium-beryllium mineralization and other rare earth metals at the lower contact of the rhyolite.
About Texas Rare Earth Resources Corp.
Texas Rare Earth Resources Corp.’s primary focus is exploring and developing its Round Top rare earth minerals project located in Hudspeth County, Texas, 85 miles east of El Paso. A preliminary economic assessment (PEA) study was completed for the Round Top project in June 2012 by Gustavson Associates. The Company’s common stock trades on the OTCQX U.S. tier under the symbol “TRER.” For more information on Texas Rare Earth Resources Corp., visit its website at www.trer.com.
* Cautionary Note to Investors Regarding Mineral Estimates
The United States Securities and Exchange Commission (“SEC”) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. This press release uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with Canadian National Instrument NI 43-101 (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosures an issuer makes of scientific and technical information concerning mineral projects. This press release uses the terms “measured and indicated mineral resources” and “inferred mineral resources.” We advise U.S. investors that while these terms are recognized by Canadian regulations, the terms are not recognized under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Mineral resources in these categories have a great amount of uncertainty as to their economic and legal feasibility. “Inferred resources” have a great amount of uncertainty as to their existence and, under Canadian regulations, cannot form the basis of a pre-feasibility or feasibility study, except in limited circumstances. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and all necessary permits and government approvals must be filed with the appropriate governmental authority. U.S. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into SEC Industry Guide 7 reserves. U.S. investors are urged to consider closely the disclosure in our latest reports and registration statements filed with the SEC. You can review and obtain copies of these filings at http://www.sec.gov/edgar.shtml.
** This press release contains statements regarding estimates of potential in place uranium mineralization at the Company’s Round Top project. These estimates are based on a preliminary estimate contained in the Preliminary Economic Assessment prepared for the Company byGustavson Associates. Such estimates do not represent a resource estimate compliant with NI 43-101 and do not represent SEC Industry Guide 7 compliant reserve estimates or economic recoveries. The estimates as presented in this press release related to uranium mineralization are preliminary in nature and may not occur as anticipated or estimated, if at all. While management believes these statements have a reasonable technical basis, they are based on assumptions of management which may not occur as anticipated, including assumptions regarding the consistency of the grade of minerals throughout the defined area. Investors are cautioned not to assume that the mineralization of uranium as detailed in this press release will ever be realized as anticipated or sufficiently documented in a definitive feasibility study.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding mineral resource estimates and in place uranium mineralization, metallurgical research progress, potential changes in the uranium market and the Company’s planned operations. When used in this press release, the words “potential,” “indicate,” “expect,” “intend,” “hopes,” “believe,” “may,” “will,” “if, “anticipate,” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, uncertainty of mineralized material and mineral resource estimates, risks relating to completing metallurgical testing at the Round Top project, and risks related to project development determinations as well as those factors discussed under the heading “Risk Factors” in the Company’s latest annual report on Form 10-K, as filed on November 15, 2012, and other documents filed with the U.S. Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.
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