Ucore Rare Metals, headquartered in Nova Scotia, Canada, is focused on the acquisition, exploration and development of heavy rare metals utilized in technology applications at the Bokan Mountain property in Alaska.
Nick Vermeulen, Vice President of Corporate Development at the Cambridge House Vancouver World Resource Conference
According to Nick Vermeulen, Vice President of Corporate Development for Ucore, this is an exciting time for the company. “We have come out with a resource since we last talked. We have put on the map a 43-101 compliant resource for rare earths – thirty nine percent of them heavy.” Ucore's Bokan Mountain deposit is located in Alaska.
With the new focus on rare earths, Vermeulen explains why not every rare earth deposit has the same value in the marketplace. He said, “I heard at the Critical Metals Symposium that if you are investing in rare earth metals, you had better have three components. A: the right kind of material, B: the ability to produce in a relatively low cost fashion (and that's largely a function of logistics and metallurgy) and C: the ability to do so in a relatively short period of time frame.”
Using this framework, Ucore Rare Metals is working toward making sure that their properties fit that profile. Vermeulen said, “We are diligently working away on that front. Our metallurgy is about to come out in the next month. We've already committed to the next phase of work, including a sixty ton sample this summer.” In addition to the sample testing, drilling will continue. Vermeulen said, “We will be drilling starting the 22nd of this month in Alaska. It's my guess that about August time frame, you'll see information start flowing.” As drilling begins, Ucore Rare Metals will also be pursuing permits. Said Vermeulen, “We are permitting to go underground to intercept our ore body underground and be able to drill a target more efficiently from an underground basis on a year-round kind of basis.”
Overall, Ucore Rare Metals is moving forward in a focused manner. Said Vermeulen, “We're very aggressively driving things forward. We've committed eight million dollars for the mine scoping and development program. We are already permitting for production-- our baseline measurements are being taken as we speak. We're very excited at being able to be the first heavy earth producer in the USA.”
Based on the content of the deposit and the potential market, Vermeulen believes that Ucore Rare Metals is currently undervalued. He said, “That will be highlighted once people understand that not all rare earth deposits are created equal based on the criteria I mentioned. I'm hoping that our metallurgy report in the next month will be a positive push in that direction.” In addition to providing investors with specifics about the metallurgical components of their deposit, Ucore Rare Metals has a strong strategy. Said Vermeulen, “What I think people are excited about for us is we have a very clear two-pronged strategy. We are not only driving an exploration project forward to a mining project, but we are also looking at a manufacturing project for metal making and magnet making in the US.”
Ucore Rare Metals focus on the western market is a mark of their loyalty to North America. Vermeulen said, “We think our investors in the US and the market at large is better served by us creating value-added product in the US rather than us selling the concentrate to China for them to add to their value chain. The state of Alaska has very clearly identified that a project like ours could make the difference between a recovery with jobs, the kind of jobs you want, close to intellectual property rights, and a recovery without jobs.” Clearly, Ucore Rare Metals is not only focused on making the most of their company, but also by being good community members concerned with job creation as well as market loyalty.
That's not to say that Ucore Rare Metals doesn't face challenges ahead. Though Alaska is consistently ranked by the Frazer Institute as one of the ten best places in the world to do mining business, getting permits for mines is a risk. Vermeulen said, “You need permits to do work in North America, but we do have support from the state of Alaska.” Another challenge is the timetable that Ucore Rare Metals has set out for themselves. Said Vermeulen, “In 24 months we will have a bankable feasibility study and in four years time we will start producing heavy rare earth material in Alaska. That is a very powerful statement, I think.”
As the Bokan Mountain project continues, there are many options for the direction Ucore Rare Metals chooses to go. Vermeulen said, “We are working on one of nineteen rare earth zones. This project has a lot of upside. We are in a race to get this to production.” As part of the project, Ucore Rare Metals plans to do crushing on site, create a concentrate and then load it onto a barge to go to a separation facility. Over the weeks and months ahead, they will be looking for a strategic partner in magnet making and mining operations.
To add to their portfolio, Ucore Rare Metals has just announced a significant claim lock in central Alaska. “We found grades of 1%-8% percent,” said Vermeulen, “Up to 10% of those are heavies that are very easy to mine at the surface. Potentially, we may have another horse to add to the race. It underlines our commitment to Alaska.”
Financially, Ucore Rare Metals is in a good position with $13 million in the bank. Currently, a set of warrants from last year is generating cash. Vermeulen said, “Our current cash will last us through a bankable feasibility study. I can see a model going forward where strategic partners not only bring money but expertise on the magnet and mining side. We'll be cautious about going after more money.”
With a commitment to the North American market in terms of acquisition and production, Ucore Rare Metals is building a positive relationship with the US government and the state of Alaska by bringing heavy rare earths to market locally. On solid ground financially, Ucore Rare Metals is well on its way to becoming a well-known name in the rare earth business.
For more information:
http://ucore.com
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Corporate AddressUcore Rare Metals Inc.
454 Voyageur Way
Hammonds Plains, Nova Scotia
Canada B4B 2A7
Tel: (902) 482-5214
Fax: (902) 492-0197
info@ucore.com