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Press release from CNW Group

Namibia Rare Earths selects area for resource drilling at Lofdal

Monday, December 05, 2011

Namibia Rare Earths selects area for resource drilling at Lofdal10:16 EST Monday, December 05, 2011IP survey delineates strike extensionsHALIFAX, Dec. 5, 2011 /CNW/ - Namibia Rare Earths Inc. ("Namibia Rare Earths" or the "Company") (TSX: NRE) is pleased to report that following receipt of additional drill results, a mineral resource drilling program will be carried out on the Area 4 heavy rare earth enriched1 target on the Lofdal Rare Earth Project in northwestern Namibia. The resource estimate will focus on a 650 meter strike length as indicated from exploration drilling completed to date. The potential strike length of the mineralized structure in Area 4 may extend for an additional 1.5 kilometers to the east as inferred by recently completed geophysical surveys. These strike extensions are now being tested by diamond drilling.  MSA Group of South Africa has been engaged to deliver a National Instrument 43-101 compliant resource estimate which is targeted to be completed in third quarter 2012. Additional results are also reported from Area 5 and from Area 6. All drill results have been received with the exception of two holes from Area 4 and ten holes from Area 5.The latest drill results from Area 4 are highlighted by an intersection of 0.92% total rare earth oxides ("TREO") over 19.0 meters with 91.5% heavy rare earth ("HREE") enrichment, including 4.22% TREO over 1.3 meters with 97.0% HREE enrichment. This intercept occurs 225 meters to the west of the previously announced highlight of 1.28% TREO over 16.0 meters with 82.6% HREE enrichment, which included 6.18% TREO over 2.0 meters with 98.4% HREE enrichment (Company press release September 15, 2011). A gradient array induced polarization ("IP") survey was completed over Area 4 which detected possible sulphide mineralization that had not been tested by earlier drilling. Three holes were deepened to test the IP anomaly and all holes intersected significant REE mineralization (best intercept 0.34% TREO with 61.4% HREE enrichment including 1.04% TREO over 1.0 meter with 94.9% HREE enrichment). The IP anomaly has been traced for an additional 1.5 kilometers to the east of the drill area and may represent a second, parallel mineralized structure.Don Burton, President stated, "One of the Company's primary undertakings to shareholders following the IPO was to delineate a viable resource target at Lofdal with a focus on exploring for heavy rare earth enriched deposits. Area 4 represents an outstanding opportunity in this regard and we are pleased to have MSA Group, which has significant REE deposit experience, engaged to complete the NI 43-101 resource estimate.  The discovery of parallel zones in Area 4 by IP and an established strike length of over three kilometers on the structure are significant developments. We will not lose sight however of the larger scale opportunities afforded at Lofdal as a newly discovered mineral district covering some 200 km2 and further regional exploration is planned for 2012. In addition to the potential for multiple rare earth discoveries, we also have a viable uranium-niobium target which has not yet been drill tested (Company press release October 4, 2011)." Program PlanningSince the initial public offering in April 2011, the Company has completed over 9,500 meters of exploration drilling on 15 of 18 planned targets within a 50 km2 portion of the 200 km2 Lofdal Carbonatite Complex (Figure 1). The drill program was augmented with detailed ground geophysical surveys with the objective of determining if a potential heavy rare earth enriched resource target could be identified. Four of the targets identified in Area 4 are now believed to represent a single, continuous mineralized zone and have been selected for more detailed drilling to develop an initial mineral resource at Lofdal.In late November two drills started up again to carry out a brief 1,200 meter drill program primarily to test high priority IP targets. MSA Group will make an initial site visit during this time to coordinate drill protocols for the planned resource drilling program. A gradient array IP survey has been completed which has delineated the favourable mineralized structure in Area 4 for over three kilometers, and a detailed pole-dipole array IP survey is also being carried out in Area 4 to develop a three dimensional image of the sulphide zone and the mineralized structure in the planned resource area (Figure 2). This work will be completed by December 15, 2011 at which time crews will demobilize for Christmas break.Crews will mobilize back to site by the second week of January, 2012 to begin the resource drilling in Area 4. It is anticipated that this program will comprise 5,000-6,000 meters of drilling and require two months to complete. The NI 43-101 compliant resource report is therefore expected to be available in the third quarter 2012. Exploration programs throughout the carbonatite complex including geological mapping, prospecting, geophysical surveys and drilling will continue throughout this period.Summary of Latest Drill ResultsThe Lofdal Carbonatite Complex is a district scale opportunity with the potential for the discovery of several rare earth deposits, some of which may have exceptional HREE enrichment. Rare earth mineralization at Lofdal is hosted in carbonatite dykes and plugs, with the dykes typically grading between 0.5 - 3% TREO. Dyke thicknesses and associated alteration are variable from less than one meter to 15 meters at surface and can be traced in some cases, up to three kilometers in strike length. Previous drill results were reported by the Company on August 3, 2011 and on September 11, 2011.Area 4Significant rare earth ("REE") mineralization in Area 4 has now been established over a strike length of 650 meters (Figure 3). Exceptional heavy rare earth enrichment continues to be intersected and highlights from the most recent results in Area 4 (expressed as % total rare earth oxides "TREO") are as follows:0.92% TREO over 19.00 meters with 91.5% HREE enrichment (including 4.22% TREO over 1.3 meters with 97.0% HREE enrichment)0.83% TREO over 3.37 meters with 95.4% HREE enrichment (including 1.10% TREO over 1.20 meters with 97.4% HREE enrichment)0.62% TREO over 10.00 meters with 81.0% HREE enrichment (including 1.04% TREO over 4.00 meters with 94.2% HREE enrichment)0.48% TREO over 13.00 meters with 69.6% HREE enrichment (including 1.89% TREO over 1.00 meter with 97.1% HREE enrichment)Area 5REE mineralization in Area 5 is wide spread but more variable with lower HREE enrichment. Additional drilling will be required to determine if a consistent zone can be targeted in this area. Significant REE mineralization was intersected in 12 holes reporting from Area 5 (Figure 4) with the best intercepts as follows:1.07 % TREO over 2.80 meters with 6.1% HREE enrichment (including 4.62% TREO over 0.53 meters with 5.6% HREE enrichment)0.35% TREO over 7.11 meters with 87.8% HREE enrichment (including 3.27% TREO over 0.49 meters with 95.3% HREE enrichment)0.28% TREO over 26.00 meters with 61.6% HREE enrichment0.22% TREO over 7.00 meters with 52.7% HREE enrichmentArea 6Significant REE mineralization was intersected in the two holes reporting from Area 6 (Figure 1) which is a low grade light rare earth target located five kilometers to the southwest of Area 4. Mineralization in Area 6 is not well understood as it is not directly related to any obvious carbonatites but rather is hosted by gneissic country rocks that appear to have been hydrothermally altered with pervasive chlorite and carry 1-2% disseminated sulphides. Best intercepts are reported as follows:0.71% TREO over 18.70 meters with 15.1% HREE enrichment (including 1.07% TREO over 10.20 meters with 13.8% HREE enrichment)0.42% TREO over 41.00 meters with 19.0% HREE enrichment (including 1.09% TREO over 6.50 meters with 13.7% HREE enrichment)Intercept widths are reported as down the hole widths and are not necessarily true widths. Interpreted dips of the mineralized zones vary from 45 to 80 degrees and all holes were drilled at -55 degrees. A summary listing of analytical results is provided in Table 1 and a complete listing of analytical results is provided in Table 2.Significance of HREE EnrichmentHeavy rare earths generally have significantly higher value than light rare earths. The U.S. Department of Energy has identified five rare earth elements, four of which are heavies, as being critical for the development of 'clean-tech' applications but which have a serious supply risk over the next 15 years unless new sources can be found (Figure 5). Terbium, dysprosium and yttrium are the principal target elements at Lofdal in the HREE enriched fluids.Most REE explorers and developers report the degree of HREE enrichment in their projects and industry norms would consider any project having greater than 10% HREE enrichment to be "enriched in heavies". Using this criteria and reference to Table 3 there are seven advanced REE projects that would be considered to be enriched in heavies with the strongest enrichment at the Norra Kaar deposit in Sweden (Tasman Metals Ltd.) with an average grade of 0.54% TREO and 52.7% HREE enrichment.REE projects cannot be assessed in terms of either percentage TREO or percentage HREE enrichment in isolation without a complete breakdown of the individual elemental concentrations which can be provided by either disclosure of individual elemental analyses or a breakdown of the grade distribution of the rare earth elements. There can also be other metals of economic significance - Norra Kaar for example has reported significant concentrations of zirconium and hafmium. Significant HREE enrichment is therefore one factor that may contribute to the economic viability of a relatively lower grade project. The other two major considerations with respect to determination of potential economic viability are tonnage and recovery. Significant quantities of HREE can therefore be derived from large tonnage REE deposits containing less than 10% HREE enrichment and a deposit may be HREE enriched but if recoveries are too low the economics become challenged.Conceptual targeted grades at Lofdal are in the range of 0.5-3.0% TREO with HREE enrichment of 75-90%. There has been insufficient exploration to date to define a mineral resource and it is uncertain if further exploration will result in the discovery of a mineral resource. In addition to the planned resource drilling program in Area 4, preliminary mineralogical and metallurgical work will be carried out to provide an indication of  potential recoveries.Program ManagementExploration activities are carried out through the Company's 100%-owned subsidiary, Namibia Rare Earths (Pty) Ltd., under the direction of Franck Bizouerne, Exploration Manager for Namibia Rare Earths Inc. based in Windhoek.Geological management of the Lofdal drilling program is being undertaken by Remote Exploration Services Namibia (Pty) Ltd. (corporate offices South Africa) which has established a complete field camp at Lofdal including full core logging and sampling facilities with a dedicated geological team on each drill. Drilling is being carried out by JGM Drilling and Exploration of Windhoek, Namibia which is operating two diamond drill rigs.Sample preparation and analytical work for the drilling program is being provided by Activation Laboratories Ltd. (Windhoek, Namibia and Ancaster, Ontario) employing ICP-MS techniques suitable for rare earth element analyses and following strict internal QAQC procedures inserting blanks, standards and duplicates.Dr. Scott Swinden of Swinden Geoscience Consultants Ltd. is an independent geological advisor to Namibia Rare Earths. Dr. Swinden was the principal author of the 43-101 Technical Report dated April 4, 2011 titled "Amended 43-101 Technical Report on the Rare Earth Element Occurrences in the Lofdal Carbonatite Complex, Kunene Region, Khorixas District, Namibia" (available on SEDAR).  Donald M. Burton, P.Geo. and President of Namibia Rare Earths is the Company's Qualified Person and has reviewed and approved this press release.About Namibia Rare Earths Inc.Namibia Rare Earths Inc. is developing a portfolio of mineral exploration projects in Namibia and is currently focused on the accelerated development of the Lofdal Rare Earths Project. The Company completed a CDN$28.75 million initial public offering and Toronto Stock Exchange listing in April, 2011 and is well funded to carry out its development program. The common shares of Namibia Rare Earths Inc. trade on the Toronto Stock Exchange under the symbol "NRE".Please click here for figures and tables: http://files.newswire.ca/985/namibia.pdfNO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVEDTHE CONTENT OF THIS RELEASE_______________________________1 As per industry norms heavy rare earths ("HREE") and their oxide equivalents ("HREO") comprise europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and yttrium (Y). Light rare earths ("LREE") and their oxide equivalents ("LREO") comprise lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd) and samarium (Sm). Total rare earths ("TREE") and their oxide equivalent ("TREO") comprise HREE+LREE (HREO+LREO). "Heavy rare earth enrichment" is the ratio of HREE:TREE or HREO:TREO expressed as a percentage. Ratios are calculated from source data and may vary from use of rounded numbers in tables.For further information: Namibia Rare Earths Inc. Don Burton, President Tel: +01 (902) 835-8760/ Fax: +01 (902) 835-8761 Email: Info@NamibiaREE.com Web site: www.NamibiaRareEarths.com