Search Minerals Phase III Drilling Extends Mineralization to 450m at the Foxtrot REE-Zr-Y-Nb Project

VANCOUVER, April 27, 2012 /PRNewswire/ - Search Minerals Inc. ("Search" or the "Company") (TSXV: SMY) and its wholly-owned subsidiary, Alterra Resources Inc., announce the completion and positive results from Phase III drilling at the Foxtrot Project (100% owned) in the Port Hope Simpson REE District, SE Labrador. Assay results from all diamond drill holes have been received and interpreted and are currently being integrated into an updated resource estimate.

Highlights:

• Every drill hole intersected REE-Zr-Y-Nb mineralization, ranging in true thickness from 5-25m;
  
  
• Phase III mineralization ranges up to 1.00% TREE (1.12% TREE+Y), 7.9% HREE (17.4% HREE+Y) including 209 ppm Dy (241 ppm Dy₂O₃) over 16.5 (true thickness);
  
  
• Mineralization extends from surface to 450m depth at which level it is still open to depth;
  
  
• Current resource estimate of 9,260,000 tonnes is expected to increase significantly and an updated resource estimate has been commissioned to Roscoe Postle and Associates; and
  
  
• Foxtrot Project is located 9 km from ice-free deep-water port and 0.5km from all season gravel road.

Jim Clucas, President and CEO of Search Minerals notes "We are delighted to report the extension of REE-Zr-Y-Nb mineralization, the characteristics of which remain constant from 200m depth to 450m depth. This will significantly expand our resource at the Foxtrot Project.  The 9,260,000 tonnes resource estimate was based on a cut-off of 130ppm Dysprosium, and the deeper drilling supports the expectation that Dysprosium will be the highest value contributor to the economics of the project."

This resource estimate is based on a cut-off grade of 130 ppm Dy; see Search news release Feb. 12, 2012 for additional details on the following resource estimate to 200m depth:

Drilling in the Foxtrot Project (see Figure 1) is focused on a highly deformed felsic and mafic bi-modal volcanic package that has consistent stratigraphy along strike and at depth. Mineralized felsic volcanic units are named FT2, FT2x, FT3, FT4, and FT5, where FT3 is the most prospective (see Figure 2). FT2 ranges from 40-60m in thickness (25-75 ppm Dy), FT2x ranges from 0-5m in thickness (150-325 ppm Dy), FT3 ranges from 4-27m in thickness (150-260 ppm Dy), FT4 ranges from 3-11m in thickness (100-200 ppm Dy), and FT5 ranges from 0-4m in thickness (100-260 ppm Dy). There are also two discordant dykes within the volcanic pile, one felsic and one mafic. The mafic dyke sparsely occurs within the main mineralized unit (FT3) making this unit either appear smaller or bifurcating the unit. The entire volcanic package is bound to the north and south by mylonitic megacrystic granitic gneiss.

The first drill program (Phase I) at the Foxtrot Project consisted of 23 holes, drilled in late 2010 and early 2011 (refer to news release, Nov. 2, 2010), which intersected REE-Zr-Y-Nb mineralization at depths of 50 and 100m along a 2km-strike length. Mineralization consists of fergusonite, allanite and zircon in metamorphosed fine-grained felsic volcanic rocks.

The second drill program (Phase II) consisted of 20 holes drilled in the early summer of 2011. This drill program intersected mineralization at depths of 50, 100, 150, and 200m along a 500m-strike length (refer to news release Aug. 30, 2011). The assays of the highest-grade intersections are markedly consistent throughout both Phase I and Phase II holes. Analytical techniques and sample preparation procedures are outlined in Search's July 27, 2010 press release.

The third drill program (Phase III), consisted of 29 holes accounting for approximately 11,000m. It was designed to intersect mineralization at depths of 150, 200, 250, 300, 350, and 450m along a 500m-strike length (see Figure 3) This news release includes updated results from a single north-south section (refer to news release Feb. 1, 2012), and results from the rest of the 500m-strike length zone with thicker mineralization (see Table 1 and 2).

The section previously reported (refer to news release Feb. 1, 2012) had been completed from the 50-350m levels, in which five holes were drilled in the Phase III drill program. Since that release, another drill hole (FT-12-02) in this section (see Figure 4) confirmed that the thickness and grade of mineralization consistently extends to 450m depth. FT-12-02 (from 586.85-608.00 m) assayed 200 ppm Dy (230 ppm Dy₂O₃), 1,123 ppm Y, 10,123 ppm Zr, 0.89% TREE, 1.00% TREE+Y, 8.57% HREE, 18.8% HREE+Y over 18.6 m (true thickness).

Results from the rest of the 500m-strike zone of thicker mineralization were also very positive with every drill hole intercepting significant mineralization ranging from 5-25 m (true thickness). Weighted averages from a representative interval (DDH FT-11-34 from 248.75-273.32 m) assayed 211 ppm Dy (243 ppm Dy₂O₃), 1,160 ppm Y, 10,532 ppm Zr, 0.92% TREE, 1.04% TREE+Y, 8.84% HREE, 18.7% HREE+Y over 21.2 m (true thickness).

The east/west longitudinal diagram (see Figure 5) portrays where the thicker mineralized zone occurs within the Foxtrot Project. Drill holes from Phases I and II, portrayed with circles, and Phase III drill holes, portrayed with squares, are coloured systematically to reflect how thick FT3 mineralization is in that drill hole. Also outlined on this section is the 500m-strike zone of thicker mineralization that extends at depth.

The Foxtrot Project resource estimate (news release Dec. 20, 2011), which included drilling from Phase I and II, extended to a depth of 200m (see Figure 3). An updated NI 43-101 resource estimate is currently being completed by Roscoe Postle Associates Inc. (RPA) to include the Phase III drill program and extend to a depth of 450m. RPA have also been commissioned to complete an updated Preliminary Economic Assessment (PEA) on the Foxtrot Project using the Phase III data to 450m.

Qualified Person:
Dr. Randy Miller, Ph.D., P.Geo, is the Company's Vice President Exploration and Qualified Person for the purposes of NI 43-101. Dr. Miller has reviewed and approved the technical disclosure contained in this news release as applicable. The company will endeavour to meet high standards of integrity, transparency, and consistency in reporting technical content, including geological and assay (e.g., REE) data.

About Search:
Search Minerals Inc. (TSXV:SMY) is a TSX Venture Exchange listed company, headquartered in Vancouver, B.C. Search is the discoverer of the Port Hope Simpson REE District, a highly prospective light and heavy REE belt located in southeast Labrador where the company controls a dominant land position in a belt 135km long and up to 12km wide.  In addition, Search has a number of other mineral prospects in its portfolio located in Newfoundland and Labrador, including a number of claims in the Strange Lake Complex, where Quest Rare Minerals has an earn-in agreement with the Company; and at the Red Wine Complex, where Great Western Minerals Group has a Joint Venture with the Company.

Furthermore, Search Minerals is the owner of patents relating to the Starved Acid Leaching Technology ("SALT"), a process with the potential to economically recover nickel and cobalt from known deposits currently considered sub economic.

Search Minerals is led by a management team and Board of Directors with a proven track record in the mining industry. The Company has experienced geological and metallurgical teams led by Dr. Randy Miller and Dr. David Dreisinger respectively.

All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility of the adequacy or accuracy of this release.

Cautionary Statement:
This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward- looking statements. Factors that could cause actual results to differ materially from these forward- looking statements include those risks set out in Search's public documents filed on SEDAR at www.sedar.com.  Although Search believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Table I - REE, Y, Zr and Nb Geochemistry for Selected Intervals from Drill Holes in Cross Section

 

Table 2 - REE, Y, Zr and Nb Geochemistry for Selected Intervals from Drill Holes in Phase III Drill Program

 

 

 

SOURCE Search Minerals Inc.

PDF with caption: "Figure 1 - Foxtrot Project Location Map". PDF available at: http://stream1.newswire.ca/media/2012/04/27/20120427_C9693_DOC_EN_12777.pdf

PDF with caption: "Figure 2 - Foxtrot Project Generalized Stratigraphy". PDF available at: http://stream1.newswire.ca/media/2012/04/27/20120427_C9693_DOC_EN_12778.pdf

PDF with caption: "Figure 3 - Foxtrot Project Drill Holes from Phase I, II and III". PDF available at: http://stream1.newswire.ca/media/2012/04/27/20120427_C9693_DOC_EN_12779.pdf

PDF with caption: "Figure 4 - Foxtrot Project Representative North-South Dy and Geology Cross Section". PDF available at: http://stream1.newswire.ca/media/2012/04/27/20120427_C9693_DOC_EN_12780.pdf

PDF with caption: "Figure 5 - Foxtrot Project Longitudinal Diagram with Unit FT3 Intersection Thicknesses". PDF available at: http://stream1.newswire.ca/media/2012/04/27/20120427_C9693_DOC_EN_12781.pdf