TSX: EMC www.emcmetals.com
VANCOUVER, April 7 /PRNewswire/ - EMC Metals Corp. (the "Company" or "EMC") (TSX: EMC) is pleased to announce that it has entered into an option agreement (the "Option Agreement") with REE Mining AS of Norway, pursuant to which EMC has an option to earn a 100% interest in two exploration properties, encompassing 120 sq km, located in southern Norway. These two pegmatite properties, known as Tørdal and Evje (the "Properties"), are both prospective for a grouping of specialty metals, and rare earth elements ("REE's"), specifically including scandium, yttrium, tantalum, beryllium, niobium, zirconium, titanium, lithium, nickel and tin. These Properties represent exploration opportunities---no commercial exploration has been conducted on either property other than surface sampling by various geologists and the Norwegian Geological Survey (NGU).
The Option Agreement between EMC and REE Mining was brokered by Rokade AS, a mergers and acquisitions specialty group located in Oslo, Norway, and a member of the IMAP investment Banking Group, and is subject to TSX approval.
Highlights: - Option payments to REE Mining, in form of cash and EMC stock, total approximately US$1 million, assuming EMC's current share price, with approximately half of the value paid within 18 months and the remainder within 24 months, - Initial cash payments total US$130,000, - Minimum exploration spend commitments total US$ 250,000 over 18 months, - Completion of spend/payment commitments secures a 100% interest in both Properties, - The Tørdal property (40 sq km) consists of a plethora of pegmatite dykes, and suggests mineral targets that include scandium, yttrium, tantalum, niobium, beryllium, zirconium, titanium, lithium, REE's and tin, - The Evje property (80 sq km) is understood to have a somewhat different geology, but its many pegmatite dykes are also prospective for scandium, REE's, and certain base metals, notably nickel, and - Numerous unique scandium mineral specimens have been observed and documented on these unique properties by local geologists and academics, employing various traditional surface sampling methods.
The Company plans to initiate various exploration activities on the Properties, beginning immediately.
Mr. Willem Duyvesteyn, Chief Technology Officer of EMC commented:
"This large area in southern Norway is a very interesting target for EMC, because it is a historic mining district for both base and specialty metals, and currently a popular area for geologists hunting for interesting and unique specimens of various unusual metals, such as scandium, yttrium, tantalum, zirconium, niobium, tin, etc. The Evje area pegmatites are world renowned for the occurrence of thortveitite, a scandium-yttrium silicate mineral. Tørdal's numerous pegmatites, while less known, could be even more prospective for specialty metals as very unique minerals such as heftetjernite (scandium tantalate), kristansenite (scandium-tin silicate), cesian bazzite (cesium-scandium-beryllium silicate), scandian ixiolite (scandium-tantalum-niobium-titanium-tin oxide), cascandite (scandium-calcium silicate), and scandio babingtonite (scandium-calcium-manganese silicate) are found here."
Mr. George Putnam, CEO of EMC commented:
"We are very excited to obtain this sizeable land position in an area attractive for scandium, and for a variety of specialty metals which are the primary commodity targets for EMC. In addition to presenting themselves as attractive drill targets, these properties offer an opportunity to meet one of EMC's objectives for scandium supply in particular, which is to build a multi-source capability to supply this embryonic market. As such, this opportunity fits well alongside our current JV scandium project in Australia (Nyngan Scandium - 50% earn-in). Of course the REE's and specialty metals possibilities hold the potential to move us in another desired direction as well."
About EMC Metals
EMC Metals is focused on application of its in-house and patented mineral recovery technologies to deliver value in specialty metal and rare earth projects. EMC's high priority development opportunity is the Nyngan Scandium Joint Venture with Jervois Mining Limited of Melbourne, Australia. The Nyngan Scandium Project has a National Instrument ("NI") 43-101 measured and indicated resource estimate of 12 million tonnes, grading 261ppm Sc, based on a cut-off grade of 100 ppm Sc ("NI 43-101 Technical Report on Nyngan Scandium, Jervois Mining Limited, Nyngan, New South Wales, Australia", March 25, 2010). In July 2010, EMC released highlights of an independent engineering study prepared by Roberts & Schaefer Co. (now owned by KBR), estimating capital costs for a processing facility of US$56M, and estimating unit processing costs under US$300/kg for Sc(2)O(3). The Company is currently doing metallurgical test work on the Nyngan resource material, to define and refine flow sheet studies, recovery estimates and capital cost estimates for the project.
EMC also holds two tungsten assets; the Springer Tungsten property in Nevada, USA and the Fostung Tungsten project in Ontario, Canada. Both tungsten assets have NI 43-101 compliant resource estimates, and the full reports are available on the Company website and on SEDAR. The Springer tungsten asset is a fully permitted, established underground mine and milling facility with a 1,200tpd throughput capability to produce a high grade scheelite (WO(3)) concentrate product. The Springer mine and mill are not currently in operation, although recent tungsten price increases have made the asset both economic and attractive to restart. The Company also holds the Carlin Vanadium property, near Carlin, Nevada, with a recently released NI 43-101 inferred resource estimate of 25.4 million tonnes, grading 0.5% V(2)O5, based on a cut-off grade of 0.30%, or 289 million lbs of total contained V(2)O5 ("NI 43-101 Technical Report on Resources, EMC Metals Corp., Carlin Vanadium Project, Carlin, Nevada", April 30, 2010).
Technical information in this news release has been reviewed by Mr. John Thompson, B.E., FAusIMM, a Qualified Person for the purposes of NI 43-101. Mr. Thompson is a Mining Engineer employed by EMC Metals.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and EMC's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE EMC Metals Corp.