Tuesday February 14, 2012
by Brien Lundin, editor Gold Newsletter
With China still looking to restrict exports of rare earth metals for the foreseeable future, the hunt for non-Chinese supplies will continue. One company strongly positioned to weather the current sector volatility is Quest Rare Minerals (QRM).
The company's advanced-stage Strange Lake rare earths project in northeastern Quebec, combined with its strong treasury, give it distinct advantages in this sector.
Quest recently released the results from its summer 2011 infill drilling program on the project’s resource-hosting B-Zone. The assays from that effort continue to show that this target hosts a substantial block of mineable REEs.
The highlight hole for last year’s program came from Hole 218, with 1.44% Total Rare Earth Oxide (TREO) over 144.3 meters.
Overall, the assays from this work showed multiple high-grade intersections of between 1.12% and 6.11% TREO over thicknesses ranging between 2.34 meters to 144.3 meters.
It’s worth noting that, in addition to the successful attempt to upgrade the resource for the upper 150 meters of the deposit, the mineralization at the B-Zone extends to at least 325 meters vertically.
The company also conducted almost 5,000 meters of core drilling for metallurgical and geotechnical testing. Data from this effort will be included in the pre-feasibility study that the company is currently conducting on the deposit.
With another 15,000 meters of exploration and geotechnical drilling planned for 2012, the company looks well-positioned to take B-Zone and Strange Lake to and through the feasibility stage.
Quest’s C$44.5 million working capital position ensures that it will have the funding necessary to reach this milestone with minimal (if any) equity dilution.
The current market doldrums have left Quest significantly undervalued. The stock is a strong buy at current levels.
Learn more about this financial newsletter at Brien Lundin's Gold Newsletter.