Concern about supply restrictions in China has sparked renewed investment interest in rare earth elements such as cerium, lanthanum, praseodymium and Yttrium.
In British Columbia, for example, a rare earths discovery by privately-owned Spectrum Mining Corp. has sparked a flurry of staking activity around Spectrum’s Wicheeda property about 80 kilometres northeast of Prince George.
In the Northwest Territories, Avalon Rare Metals Inc. (TSX: T.AVL, Stock Forum), a leading player in the rare earth elements field, is working to develop its $400 million Nechalacho project .
Meanwhile, Molycorp Minerals, is making plans for a US$350 million initial public share offering in a bid to modernize and expand its flagship Mountain Pass mine in California. The dormant mine was for 40 years the main North America supplier of rare earth products to the world.
Industry officials say this activity is being driven by news that China is reducing rare element exports each year in a bid to meet its own expanding consumption. China traditionally produces 95% of the world’s supply of rare earth elements, which are used in a variety of applications including rechargeable batteries, magnets, plasma screen tvs and semi-conductors.
The Chinese export restrictions have led the U.S. government to consider how to rebuild the domestic supply chain through the development of new production sources.
“I think that woke a lot of people up and got them interested in what rare earths are used for,’’ said Gary Musil, chief executive officer of International Montoro Resources Ltd. (TSX: V.IMT, Stock Forum), which is exploring in the vicinity of the Spectrum discovery in B.C.
Musil says exploration will ramp up this summer as International Montoro and a handful of other juniors attempt to outline viable deposits of rare earth elements on their own properties.
They include Bolero Resources (TSX: V.BRU, Stock Forum), Canadian International Minerals (CNQ: C.CIN, Stock Forum), Commerce Resources (TSX: V.CCE, Stock Forum), and Triple Dragon Resources (CNQ: C.TDN, Stock Forum).
On Tuesday, Bolero said it has begun a preliminary exploration program on a block of mining claims that virtually surrounds the Wicheeda discovery.
Bolero said immediate work will consist of sampling, cursory prospecting and outcrop drilling.
Musil believes some of these companies might soon combine forces to fund an airborne survey in a bid to establish exploration targets.
He said all of the players involved have been encouraged by drilling results from Wicheeda. Of the four holes drilled in 2008, all returned significant economically interesting values of cerium, lanthanum, praseodymium, and neodymium.
Highlights include a 48.6-metre drill intersection averaging 3.55% rare earth elements
Musil said he is currently talking to at least one party who has expressed interest funding exploration on the International Montoro properties.
