Rare Element Resources jumps after 20% Bear Lodge deposits increase
Rare Element Resources stock jumped 9% in after hours trade in New York after the company announced a new estimate for the amount of rare earth materials at its Bear Lodge project in Wyoming. The gains were on top of a 7% jump during regular hours for the volatile stock which is still trading down almost 40% from record highs hit in January.
The new estimate indicates a 20% increase in total rare earth oxides to 660m kilograms. The company also said there is significant potential for further expansion of all deposits and a preliminary feasibility study should be completed late 2011 or early 2012.
The company highlighted the following in the statement:
- High-grade indicated mineral resource of 4.9 million tons at 3.77% REO
- Additional high-grade inferred mineral resources of 17.81 million tons at 3.03% REO
- All of the indicated resource and 11.65 million tons @ 3.22% REO of the inferred resources are near-surface oxide and oxide-carbonate mineralization
- Initial inferred resource estimate of the Whitetail Ridge deposit
Image shows drilling at the company's Bull Hill deposit.