Jun 20, 2012 — Vancouver, British Columbia – June 20th, 2012 – Canada Rare Earths Inc. (“Canada Rare Earths†or “the Companyâ€) (tsx.v:CJC) DE:YXEN -48.78% (otc-bb:CJCFF) is pleased to announce that a 1,145 line kilometer helicopter borne GPRTEM airborne survey has successfully revealed promising graphite targets on both the Lac des Iles West and La Loutre graphite properties. Both projects are located in close in proximity to Timcal Graphite and Carbon’s Lac des Iles Graphite Mine.
At Lac Des Iles West, the airborne survey has revealed an 8km long by 400m wide anomalous electromagnetic trend along with numerous interpreted NNW coincident structures immediately west of Timcal’s Lac Des Iles Graphite Mine. A comprehensive field program to verify the EM anomalies will be undertaken shortly.
At La Loutre, a geological team recently completed a detailed mapping and sampling program which discovered multiple showings of graphite contained in paragneiss and marble and exposed at surface. Samples from these showings were visually estimated to contain up to 30% graphite. Visible flake graphite was also widely reported. All surface samples have been sent to a lab for further analysis, and the results are anticipated within the next few weeks. Meanwhile, the La Loutre airborne survey revealed a strong electromagnetic trend over 10 kilometers long and up to 1 kilometer wide which is also coincident with these surface showings, confirming that the electromagnetic anomaly is certainly associated with graphite where these outcrops were discovered, but equally that this electromagnetic anomaly is also likely suggesting the potential for a much larger graphite bearing system where it is covered by overburden as well.
To review maps of the surveys, please visit the links below:
The Lac Des Iles West electromagnetic survey map
The La Loutre electromagnetic survey map
The La Loutre geological mapping and sampling and electromagnetic map
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.
As a result of this work, both projects warrant further exploration.
Alain Moreau P.Geo, Geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the Lac Des Iles West technical content of this release.
Jean-Sebastien Lavallee P.Geo, Geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the La Loutre and Labelle technical content of this release.
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. This has also increased the interest in graphite.
Meanwhile, global consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MM t 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 tons 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 and prices for large flake, high purity graphite (+80 mesh, 0.2mm, 94-97% Carbon) have more than doubled.
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 McMillanâ€
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 Lac Des Isles West, La Loutre and Labelle Projects, and historical information of the 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.
