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Rare Earth Elements: A Review of Production, Processing ...

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<strong>Rare</strong> <strong>Earth</strong> <strong>Elements</strong> <strong>Review</strong> Section 3 – Life-Cycle Stages <strong>of</strong> <strong>Rare</strong> <strong>Earth</strong> <strong>Elements</strong> Mines<br />

Drilling will also displace ground water entering the borehole to the ground surface, along with the<br />

drilling fluids. These formation fluids can be highly mineralized, and the cuttings and drilling muds can<br />

entrain toxic levels <strong>of</strong> metals and other chemicals. Drill cuttings and drilling fluids are typically collected<br />

once the borehole is completed and abandoned; however, regulations in some states allow return <strong>of</strong><br />

cuttings to the borehole. Excess materials may be stored in drums, contained in mud pits, or managed and<br />

disposed <strong>of</strong> as a waste.<br />

Locations in the United States with Recent Exploration Activity and a Summary <strong>of</strong> Potential REE<br />

Resource Areas<br />

Potential sites <strong>of</strong> REE resources have been under evaluation in recent years to prove the reserves and<br />

determine the mining potential at these locations. Sites receiving current or recent attention are located in<br />

Utah, Colorado, Wyoming, Alaska, California, Nevada, and Nebraska.<br />

� During 2008, the Great Western Minerals Group, Ltd. completed an extensive drilling and<br />

sampling program at the Deep Sands deposit located in the Snake Valley and adjacent to the Deep<br />

Creek Mountains <strong>of</strong> west-central Utah. After a feasibility study to consider the low-grade<br />

monazite mineral ore containing rare earth concentrations, the company announced that it did not<br />

currently plan to undertake additional exploration at the site (Great Western Minerals Group,<br />

2011).<br />

� A recently formed company, Colorado <strong>Rare</strong> <strong>Earth</strong>s Incorporated (CREI), announced in March <strong>of</strong><br />

2011 that it was soliciting funding to begin exploration near the Powderhorn mine site in<br />

Colorado (Colorado <strong>Rare</strong> <strong>Earth</strong>s, Inc, 2011). CREI also has acquired properties at Iron Hill and<br />

Wet Mountains Colorado, where potential REE resources have been identified. CREI is currently<br />

organized as a mineral claims acquisition company, but plans to expand to an exploration and<br />

development company in the future.<br />

� In Alaska, exploration is underway at the Bokan Mountain site that is located at the southernmost<br />

end <strong>of</strong> the Alaskan panhandle on Prince <strong>of</strong> Wales Island. This is a site that was mined in the<br />

past for uranium ore, but also has known HREE and LREE resources.<br />

� Molycorp Minerals, as described earlier, is a past producer <strong>of</strong> REEs and is currently preparing to<br />

re-open its mine at Mountain Pass, California.<br />

� In Nevada, about 16 miles east <strong>of</strong> the Mountain Pass mine, Elissa Resources is exploring multiple<br />

locations called the Thor REE Project Area, where HREEs and LREEs have been discovered; at<br />

least one <strong>of</strong> these locations is geologically similar to the Mountain Pass deposit (Elissa<br />

Resources, 2011). To date, Elissa Resources’ exploration activities have included surface<br />

mapping, a district-scale detailed high-resolution airborne magnetic geophysical survey,<br />

extensive ground radiometric surveys, satellite imagery studies, petrographic studies, and<br />

sampling programs, including channel sampling and the sampling <strong>of</strong> historical surface workings<br />

that are remnants <strong>of</strong> a 1950s uranium-thorium prospecting rush.<br />

� Quantum <strong>Rare</strong> <strong>Earth</strong> Developments Corporation recently has begun exploratory drilling at the Elk<br />

Creek Project in southeastern Nebraska. The focus <strong>of</strong> these drilling efforts is to perform a<br />

resource assessment <strong>of</strong> niobium and associated REEs contained in a carbonatite deposit. These<br />

efforts are in the early stages, and no final determination about the resource has been made at this<br />

time (Quantum <strong>Rare</strong> <strong>Earth</strong> Developments Corporation, 2010).<br />

� Bear Lodge <strong>Rare</strong>-<strong>Earth</strong> Project is located approximately 6 miles north <strong>of</strong> Sundance, Wyoming,<br />

and is comprised <strong>of</strong> 90 unpatented federal lode claims and one state lease, for a total <strong>of</strong> about<br />

2400 acres. It is owned by <strong>Rare</strong> Element Resources through its Wyoming-incorporated Paso Rico<br />

(USA) Company, Inc. Twenty-three <strong>of</strong> the mining claims were obtained from Phelps Dodge<br />

Corporation and are subject to 2-percent net smelter return production royalty. The site has been<br />

prospected at various times since 1949. Several areas <strong>of</strong> mineralization have been identified,<br />

including high-grade copper, molybdenum, gold, and REMs within an altered carbonatite-<br />

3-8

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