Great American Energy, Inc. Enters Into Option To Acquire 60% Interest In Canada-Based Bear Creek Rare Earth Property
At presumed depth extent of 500 meters, the Jackson report suggested a tonnage in the order of 1 billion tonnes for the Bear Creek Property. The suggested tonnage equates to substantial potential value even at a modest profit margin, and warrants considerable exploration effort to determine the possible presence of such a resource. The Company feels that the in-place value per metric ton of REE and other rare elements in the intrusive Carbonates are sufficient to warrant examining the possibility of developing a large-scale open-pit mining operation, dependent on a process being developed to concentrate the rare earth minerals.
As such, the Company is currently developing a two-phase evaluation program plan designed to measure the distribution and amounts of the property's various rare earth elements in a three dimensional array. Exploration activities will include a surface sampling program on both a grid and geological parameter basis, and a geophysical survey to indirectly map the variations with depth within the host rock.
The Bear Creek Property is located in rolling uplands. Excellent infrastructure, accommodations and supplies exist at the entrance to the area just 3 miles (5 km) from site. Full support services for operations are available at Trail, a substantial mining and smelter center for over 100 years. The community is mining oriented and favorably inclined toward industrial development. Abundant power and water are also available as needed.
Great American Energy's CEO, Felipe Pimienta, commented: "With China controlling about 90% of the rare earth elements currently being consumed worldwide, the Bear Creek Property represents the potential to develop a greatly needed North American supply of REEs. Our next step is to better determine the mineral and economic potential of the property through further exploration work."According to the terms of the Option Agreement, the option must be exercised on or before April 30, 2015. To exercise the option, the Company must make a series of scheduled cash payments and fund mineral exploration work on the property totaling an agreed upon dollar amount no later than April 30, 2015. Following the exercising of the option, the Optionor will retain a 2% Net Smelter Royalty (NSR) for any and all tonnage mined and delivered from the property for any and all minerals. The 2% NSR will also apply to any mining claims staked within the Area of Mutual Interest defined in the Option Agreement.
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