In my last entry, I mentioned that I thought November was poised to end on a high note for many rare earth companies. Well, it happened and the momentum has continued into December.
Rare Earth/Metal Situations Worth Highlighting
1. Commerce Resources released significant assay results from their Eldor Rare Earth Project which newsletter writer John Kaiser has called "the most important new grassroots rare earth discovery since market interest in rare earths took off in 2009".
2. Rare Earth Metals and Ucore Rare Metals entered into a joint venture to jointly fund exploration and development of the Northcott Property located in western Newfoundland. The JV should leverage the expertise of the two companies and help to develop the project more effectively.
3. Avalon Rare Metals Inc. has received approval to list its shares on the AMEX. The listing is conditional on a number of conditions. The company expects the process to be complete in 4-6 weeks.Major Rare Earth Discovery on Fast-Track
4. Matamec has begun exploration at its Kipawa Property.
After extending its 2010 exploration at the Eldor Project to add another drill program, Commerce Resources reported results from two more holes. The fantastic results were well received by the market, trading over 6.5 million shares on the first day.
The results also prompted John Kaiser of the Kaiser Bottom-Fish Online to add Commerce to his Rare Earth Index, and to write comments such as:
“Commerce Resources Corp. was added to the KBFO Rare Earth Index on November 30, 2010 following the release of additional drill results on November 24 which confirm that the Eldor carbonatite in northern Quebec is a major new large tonnage light rare earth discovery and which establish the potential for a heavy rare earth enriched zone that could serve as a sweet spot for initial mine development. The discovery hole was announced on August 19 which I described in a Bottom-Fish Comment published on August 20, 2010 as the most important new grassroots rare earth discovery since market interest in rare earths took off in 2009.”
“What caught my attention was the consistency of the rare earth mineralization within long intervals, which was what had also enabled me to realize that the brownfields B-Zone discovery Quest Rare Minerals Ltd announced in September 2009 had world class implications. The 1.5%-2.0% TREO grade range of the initial widely spaced Eldor drill holes implied a tonnage footprint in the order of several hundred million tonnes.”
“The latest results add a new dimension to Eldor which justifies fast-tracking its exploration and viewing it as a contender in the race to production, and for this reason I have added Commerce to the Rare Earth Index.”
“The possibility has now emerged that the Ashram zone may host open-pittable HREO enriched mineralization, which makes fast-track exploration a greater priority than if it were just another light rare earth system.”
Strategic Rare Earth Partnership
Rare Earth Metals and Ucore Rare Metals formed a strategic partnership to develop their Northcott Property in Newfoundland. The joint venture is one that I believe will have synergies as Rare Earth Metals are well-known for their extensive exploration experience in the Maritime Provinces.
REE Listing on the AMEX
Following their listing on the OTCQX, Avalon Rare Metals announced in an update that their received conditional approval for listing on the AMEX. For many companies, this has been a significant move, opening their stock to a wider audience of American institutional and retail investors.
Drilling to Begin
While most REE companies are wrapping up the drill programs, Matamec Explorations has announced the commencement of drilling at their Kipawa Project. The drilling will focus on building resources to those previously reported.