Press release from TheNewswire.ca
Canada Rare Earths Starts Airborne Electromagnetic Surveys at the La Loutre and Lac Des Iles West Graphite Projects, Quebec
Wednesday, April 25, 2012
Canada Rare Earths Starts Airborne Electromagnetic Surveys at the La Loutre and Lac Des Iles West Graphite Projects, Quebec06:28 EDT Wednesday, April 25, 2012(via Thenewswire.ca) Vancouver, British Columbia - April 25th, 2012 - Canada Rare Earths Inc. ("Canada Rare Earths" or "the Company") (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) is pleased to announce that an airborne electromagnetic survey (the "GPRTEM - MAG Survey") is now underway covering the Company's La Loutre and Lac des Isles West Graphite properties located in Quebec. The GPRTEM - MAG Survey is a high resolution time domain transient electromagnetic survey system. The platform intends to provide very high quality data with a radar altimeter with an accuracy of 1.5 meters and a real-time GPS navigation system with differential corrections providing an in-flight accuracy within 2 meters. The survey area consists of 1,145 line kilometers of helicopter survey covering the La Loutre and Lac Des Isles West graphite properties located in the Laurentian area of Quebec. The GPRTEM is anticipated to return highly accurate quantitative information about the electromagnetic conductivity of these properties. On or near surface graphite occurrences are commonly associated with positive electromagnetic signatures. The results of this airborne survey are expected in May and will form the backbone of the Company's upcoming prospecting, trenching and drilling programs planned for this summer. ABOUT GRAPHITE Natural graphite comes in several forms: flake, amorphous and lump. Graphite has many important new applications including its use in lithium ion batteries, fuel cells and nuclear and solar power that have the potential to significantly increase the demand for this critical element. For instance, there is between 10 and 30 times more graphite required by weight to produce a lithium-ion battery than there is lithium. In addition, the recent discovery of a new material called graphene, which is actually derived from graphite, has also heightened interest. International research is now underway into a number of its potential applications including enhancing the speed and processing power of many modern electronic devices, which has also increased the interest in graphite. Meanwhile, global consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MM tonnes in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Of the 1.2 million tonnes of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 73% of the world's graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010). As a function of these fundamentals, demand for graphite, and thereby prices, are expected to rise as electric vehicles and lithium battery technology continue to be adopted and while the material performs a greater role in new technology applications. Graphite prices have been increasing in recent months and over the last couple of years, with prices for large flake, high purity graphite (+80 mesh, 0.2mm, 94-97% Carbon) having more than doubled. EXPLORATION PLANS Canada Rare Earths plans to mount an aggressive exploration campaign on these properties commencing with a complete compilation of historic geologic work followed by surface work, trenching and diamond drilling. The exploration targets are multiple crystalline flake graphite targets similar to other graphite deposits and mines in Quebec such as Focus Metals Inc.'s Lac Knife Deposit and Timcal Graphite and Carbon's Lac des Iles Mine. The initial exploration plans for the Company's portfolio of graphite projects are as follows: Lac Des Isles West: -Ground sampling, mapping and an EM survey Champagne: -Ground sampling, mapping, trenching, and drilling La Loutre: -Ground sampling, mapping and an EM survey Tetepisca North: -Ground sampling and mapping Labelle: -Ground sampling, mapping, and an EM survey beginning upon completion of community consultation In all areas, the exploration targets are multiple crystalline flake graphite targets similar to other graphite deposits and mines in Quebec such as Focus Metals Inc.'s Lac Knife Deposit and Timcal Graphite and Carbon Inc.'s Lac des Iles Mine. The Company also announces that Sun Tzu Ventures Inc., a company wholly owned by David McMillan, Chairman and Director of the Company, has agreed to the cancellation of 400,000 incentive stock options having an exercise price of $0.50 per share. The stock options were originally granted on August 15, 2011, and will be cancelled effective April 30, 2012. Jean-Sebastien Lavallee P.Geo, geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release. More information about the Company's future plans will be provided when available. For more information on Canada Rare Earths Inc., please visit www.canadarareearths.com or call 604.685.5851. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. On Behalf of the Board, "Chad McMillan" President & CEO Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's plans for and intentions with respect to the exploration of the Champagne, Tetepisca North, Lac Des Isles West, La Loutre and Labelle Projects, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. 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