VMS Finalizes the Sale of the Eden Lake REE Project to Rare Element Resources Ltd.
November 24 2009 - 9:00AM
Marketwired
VMS Ventures Inc. (TSX VENTURE: VMS) (the "Company") is pleased to
announce that Rare Element Resources (TSX VENTURE: RES) ("Rare
Element") has now signed the definitive agreement with VMS to
acquire the Eden Lake REE project in Manitoba, Canada. The TSX
Venture Exchange has also approved the transaction and Rare Element
is now in the process of issuing the common shares to VMS and
transferring the claims into Rare Element's name.
Rare Element acquired a 100% interest in the Eden Lake REE
Project for the issuance of 300,000 common shares to VMS, with
75,000 at closing, and 75,000 at 6, 12, and 18 months thereafter.
Rare Element is also subject to a 3% Net Smelter Returns ("NSR")
royalty to Strider Resources Limited and has the right to buy 50%
of the NSR for $1.5 million.
Eden Lake Rare Earth Element Project, Manitoba, Canada
The Eden Lake REE Project is located 35 kilometers northwest of
Leaf Rapids, Manitoba. In 2003 VMS, which was then called Rare
Earth Metals Corp., performed detailed geological mapping,
sampling, and petrographic studies that led to the discovery of an
extensive area (approximately 8 square kilometers) of hydrothermal
stock-work veining, magmatic carbonatite dikes, and breccia exposed
in outcrop. Carbonatite dikes and plugs were discovered at three
locations, and the property geology has characteristics that
suggest a large carbonatite complex.
REE-enriched minerals identified in petrographic studies include
strontium-REE-apatite, britholite, allanite, and REE mineral
inclusions in andradite garnet. REE enrichments occur in all
hydrothermally metasomatized rocks. The highest REE concentrations
encountered by VMS are in the carbonatite dikes (up to 1.6% total
REO, 9,764 ppm Sr, and 745 ppm Y), and in hydrothermal REE-rich
veins (up to 13.8% total REO and 5,307 ppm Y). VMS also discovered
heavy REEs (Eu-Lu) on the project during their field work. Rare
Element will be evaluating the carbonatite complex, which may have
similarities to the Company's Bear Lodge project, and the heavy
rare earths plus yttrium in the hydrothermal veins.
A drill program was completed on the project in 2006, and the
holes provided additional favourable geologic indications for a
carbonatite complex, but without hitting significant REE grades.
Six holes for a total of 765 meters were drilled in the
northeastern half of the 8 square kilometer zone of intensely
altered rocks. Most of the favourable targets have not been
adequately tested, and additional exploration of the project for
yttrium and heavy rare earths is warranted.
Rare Element Resources Ltd (TSX VENTURE: RES) is a publicly
traded mineral resource company focused on rare-earth elements and
gold. In addition to the REE exploration and evaluation efforts,
the Company and Newmont have entered into the Sundance gold
exploration joint venture on the Company's Wyoming property.
Newmont has the right to earn a 65% working interest in Rare
Element Resources' property, excluding any rights to the rare-earth
elements and uranium but including rights to gold and other metals,
by performing US$5 million in property work expenditures over a
five-year period. Newmont also has the right to earn an additional
15% working interest by completing a positive project feasibility
study. Gold exploration drilling began in July for the 2009
program, and rare-earth drilling began in August.
VMS Ventures Inc. currently has a profile on Corebox.net which
is updated as soon as assay results are released. The link to visit
our Corebox profile is:
http://www.corebox.net/properties/reed_lake/.
Investors are invited to visit the VMS Ventures IR Hub at
http://www.agoracom.com/IR/VMSVentures where they can post
questions and receive answers or review questions and answers
already posted by other investors. Alternatively, investors are
able to e-mail all questions and correspondence to VMS@agoracom.com
where they can also request to be added to the investor e-mail list
to receive all future press releases and updates in real time.
VMS Ventures Inc. is focused primarily on acquiring, exploring
and developing copper-zinc properties in the Flin Flon-Snow Lake
VMS Belt. The Company also holds the largest land package
considered prospective for nickel-copper mineralization at Lynn
Lake, which is to date Canada's third largest nickel producing
camp. The Company's project portfolio consists of the Snow Lake VMS
project, the Lynn Lake Gabbros nickel-copper project, the Nickel
Belt project, the South Bay nickel-copper-cobalt PGE property, and
the Eden Lake Carbonatite Complex, Specialty Metals property. All
VMS Ventures Inc. properties are located in the mining friendly
province of Manitoba, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal B.Sc., President & Director
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: VMS Ventures Inc. Keith Patey Director of
Communications (604) 986-2020 or Toll Free: 1-866-816-0118 (604)
986-2021 (FAX) www.vmsventures.com Coal Harbor Communications Dale
Paruk (604) 662-4505 or Toll Free: 1-877-345-3399
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