Great American Energy, Inc. Enters Into Option To Acquire 60% Interest In Canada-Based Bear Creek Rare Earth Property
Great American Energy, Inc. (OTCBB: SRBL)("Great American Energy" and/or "the Company") is pleased to announce that on June 7, 2012 (effective date of April 28, 2012), the Company entered into an option agreement (the "Option Agreement") to acquire an undivided 60% interest in the Bear Creek Rare Earth Property. The property consists of 10 mining claims containing ~7311 acres (~2,959 hectares) a few miles northeast of the mining community of Trail, British Columbia, Canada. The Option Agreement also identifies an Area of Mutual Interest encompassing all mining claims and property within a ~12.4-mile (20-km) radius of the property.
Rare Earth Elements are critical to a wide range of products, including many emerging green energy technologies (e.g., Hybrid Cars, Plug-in Hybrid Electric Vehicles or PHEVs, wind turbines, compact florescent lighting); high tech applications (e.g., computer disk drives, cell phones); defense systems and many other applications.
According to a report by Dr Stewart A. Jackson, PhD, P, GeoI., (Feb. 2011), the Bear Creek Property contains potential for significant resources of Rare Earth Elements (REEs). Samples collected from 32 locations on the property provided indications of four elements as major potential contributors to value: Scandium (4 g/t), Neodymium (33 g/t), Samarium (6 g/t) and Europium (1.78 g/t). Lesser potential contributions are represented by Holmium (0.51 g/t), Gadolinium (5.5 g/t), Yttrium (17 g/t), and Ytterbium (1.5 g/t). Levels indicated to date for Dysprosium (3.2 g/t), Erbium (1.5 g/t), Lutetium (0.22 g/t), Praseodymium (9 g/t) and Thulium (0.21 g/t) point to those elements potentially contributing to smaller extents. The report notes that the REE values are based on surface samples only, and due to the type of deposit on the property, there is potential for higher grades at depth.
The report concludes the Bear Creek REE project warrants further work due to the geological formations in the area as well as the discovery of Carbonatite-affiliated rock type at two sites. This type of carbonatized rock is possibly an epizonal intrusive with unlimited depth. The two discoveries cover an area of 100+ meters by 350+ meters each, and lie 2,000 meters apart with the obvious topographical formation connecting the two sites. Further exploration of the area would focus on determining potential size and depth of the sites.
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