Chuchinka Property

International Montoro Resources Inc. has acquired 2,268 ha. (5 claims- Chuchinka Property) contiguous to and adjoining Spectrum Mining Corp’s recently reported rare earth discovery, located 80 km northeast of Prince George, B.C. via Hwy.97, then east along the all weather Chuchinka Forest Service Road.

In late October, Spectrum Mining reported significant rare earth element mineralization on its Wicheeda carbonatite-syenite breccia intrusive complex rare earth discovery.

Highlights included a 48.64 metre interval which averaged 3.55% rare earth elements (“REE”), a 72.0 metre interval that averaged 2.92% REE, and a 144 metre interval which averaged 2.20% REE in three separate drill holes. (click for the 5th Annual Minerals South Conference – Cranbrook, B.C. –Abstracts).

In 2009, eleven NTW diamond drill holes totalling 1835 m were drilled in the “Main Zone” from 2 new drilling platforms on Wicheeda. All eleven-drill holes intersected significant rare earth mineralization and the Wicheeda deposit remains open in all directions.

World recognized carbonatite-rare earth mineralization specialist Anthony Mariano visited the Wicheeda project during the 2009 drilling program and has subsequently examined drill core samples as well as rock samples that he collected on the site. His analytical work including SEM and cathodoluminescense indicates that the Wicheeda mineralization is mainly quite coarse grained (0.2 m to 0.5 mm) monazite and a bastnaesite-synchisite-parasite mineral. He has also conducted a bench scale heavy liquid and magnetic separation study on a composite sample of Wicheeda drill core and was able to produce a high grade REE concentrate that contained 56.09 wt. %REE. This test indicates that the Wicheeda rare earth mineralization is simple and easy to produce a marketable concentrate from compared to most otherworld rare earth deposits including the dormant world-class rare earth mine at Mountain Pass in California. By also applying a flotation circuit it should be easy to produce a 60% LREE concentrate from Wicheeda which would exceed the concentrate grade from Mountain Pass which for over 40 years was the main North American supplier of rare earth products to the world.

Several other companies have joined the search for an extension of the Wicheeda rare earth discovery. Commerce Resources Corp. (“CCE”) and Canadian International Minerals Ltd. (“CIN”) also reported encouraging results in their 2009 rock, silt and soil sampling program including a new anomaly that exceeded the detection limit of greater than 1% cerium, indicative of light rare earth content, and 309 ppm gadolinium, indicating the presence of heavy rare earths. Zimtu Capital Corp. (“ZC”) also owns claims adjoining the Montoro claims to the north and west, Bolero Resources Corp. ("BRU") has acquired 43 claims on the east and west, and Alix Resources Corp. ("AIX") to the northeast.

REE’s are critical components in many high-tech applications including hybrid motor vehicles, flat screen monitors, high-power magnets, consumable electronics (Blackberries, iPods, DVDs, cellular phones), green energy technology, fibre optics, super alloys for the aerospace and building industries, medical and dental lasers. But even more critical as far as Western governments are concerned is their use in high-tech strategic military and defense weaponry. Guided missiles and other precision weapons, for example, rely on rare earth metals and magnets to help direct their course. Although demand for REE’s is growing rapidly, over 90 percent of global production is controlled by China, which has recently imposed restrictions on their exports.

With insatiable consumer demand for high tech electronics, clean energy mandates from countries around the globe and out-of-control military spending, it seems likely that demand will only increase as supplies are threatened. This is the recipe for much higher prices in rare earth and the companies that develop them.

Table of Elements

Rare Earth Headlines:

Oakshire Financial - What the future of rare earth metals could mean for Toyota (pdf) (weblink)

Defense News - GAO: Reviving U.S. Rare Earths Supply a 15-Year Chore (pdf) (weblink)

Avalon Rare Metals Inc - Rare Earths and Future Metals: What are they and why are they important?" (pdf) (weblink)

Industry Report - Rare Earth Elements - Pick Your Spots, Carefully
March 25th, 2009 (pdf) (weblink)

Defence News - Bill Calls for Establishment of First U.S. Rare Earth Minerals Stockpile (pdf) (weblink)

CBC - Investors rush into rare earth element mining (pdf) (web link)

Official says China plans to create reserve of rare earths to manage resource demand (read article)

Rare Earth Metals Will Spike Higher in 2010 (read article)

Rare Earths in China: Cornering the market or a victim of its own success? (mineweb.ca)

Shortage of Rare Earth Elements Could Thwart Innovation (read article)