DENVER--(BUSINESS WIRE)--Great American Energy, Inc. (OTCBB: SRBL)("Great American Energy" and/or "the Company") is pleased to announce that on June 7, 2012 (effective date of April 28, 2012), the Company entered into an option agreement (the "Option Agreement") to acquire an undivided 60% interest in the Bear Creek Rare Earth Property. The property consists of 10 mining claims containing ~7311 acres (~2,959 hectares) a few miles northeast of the mining community of Trail, British Columbia, Canada. The Option Agreement also identifies an Area of Mutual Interest encompassing all mining claims and property within a ~12.4-mile (20-km) radius of the property.
“With China controlling about 90% of the rare earth elements currently being consumed worldwide, the Bear Creek Property represents the potential to develop a greatly needed North American supply of REEs. Our next step is to better determine the mineral and economic potential of the property through further exploration work.”
Rare Earth Elements are critical to a wide range of products, including many emerging green energy technologies (e.g., Hybrid Cars, Plug-in Hybrid Electric Vehicles or PHEVs, wind turbines, compact florescent lighting); high tech applications (e.g., computer disk drives, cell phones); defense systems and many other applications.
According to a report by Dr Stewart A. Jackson, PhD, P, GeoI., (Feb. 2011), the Bear Creek Property contains potential for significant resources of Rare Earth Elements (REEs). Samples collected from 32 locations on the property provided indications of four elements as major potential contributors to value: Scandium (4 g/t), Neodymium (33 g/t), Samarium (6 g/t) and Europium (1.78 g/t). Lesser potential contributions are represented by Holmium (0.51 g/t), Gadolinium (5.5 g/t), Yttrium (17 g/t), and Ytterbium (1.5 g/t). Levels indicated to date for Dysprosium (3.2 g/t), Erbium (1.5 g/t), Lutetium (0.22 g/t), Praseodymium (9 g/t) and Thulium (0.21 g/t) point to those elements potentially contributing to smaller extents. The report notes that the REE values are based on surface samples only, and due to the type of deposit on the property, there is potential for higher grades at depth.
The report concludes the Bear Creek REE project warrants further work due to the geological formations in the area as well as the discovery of Carbonatite-affiliated rock type at two sites. This type of carbonatized rock is possibly an epizonal intrusive with unlimited depth. The two discoveries cover an area of 100+ meters by 350+ meters each, and lie 2,000 meters apart with the obvious topographical formation connecting the two sites. Further exploration of the area would focus on determining potential size and depth of the sites.
At presumed depth extent of 500 meters, the Jackson report suggested a tonnage in the order of 1 billion tonnes for the Bear Creek Property. The suggested tonnage equates to substantial potential value even at a modest profit margin, and warrants considerable exploration effort to determine the possible presence of such a resource. The Company feels that the in-place value per metric ton of REE and other rare elements in the intrusive Carbonates are sufficient to warrant examining the possibility of developing a large-scale open-pit mining operation, dependent on a process being developed to concentrate the rare earth minerals.
As such, the Company is currently developing a two-phase evaluation program plan designed to measure the distribution and amounts of the property's various rare earth elements in a three dimensional array. Exploration activities will include a surface sampling program on both a grid and geological parameter basis, and a geophysical survey to indirectly map the variations with depth within the host rock.
The Bear Creek Property is located in rolling uplands. Excellent infrastructure, accommodations and supplies exist at the entrance to the area just 3 miles (5 km) from site. Full support services for operations are available at Trail, a substantial mining and smelter center for over 100 years. The community is mining oriented and favorably inclined toward industrial development. Abundant power and water are also available as needed.
Great American Energy's CEO, Felipe Pimienta, commented: "With China controlling about 90% of the rare earth elements currently being consumed worldwide, the Bear Creek Property represents the potential to develop a greatly needed North American supply of REEs. Our next step is to better determine the mineral and economic potential of the property through further exploration work."
According to the terms of the Option Agreement, the option must be exercised on or before April 30, 2015. To exercise the option, the Company must make a series of scheduled cash payments and fund mineral exploration work on the property totaling an agreed upon dollar amount no later than April 30, 2015. Following the exercising of the option, the Optionor will retain a 2% Net Smelter Royalty (NSR) for any and all tonnage mined and delivered from the property for any and all minerals. The 2% NSR will also apply to any mining claims staked within the Area of Mutual Interest defined in the Option Agreement.
Learn more about the Bear Creek Rare Earth Property, the Company, and its recent news at Great American Energy’s website: http://www.gamericanenergy.com.
ABOUT GREAT AMERICAN ENERGY, INC.
Great American Energy, Inc. is a publicly traded (OTCBB: SRBL) mineral exploration and development company focused on supporting America’s growing clean energy and clean tech industries. Based in Denver, Colorado, Great American Energy is dedicated to responsibly identifying, acquiring and developing mineral assets in America and US-friendly countries. The Company’s portfolio of projects currently targets lithium and rare earth element production, both of which are essential to America's clean energy and clean tech industries. For more information on the Company and its activities, visit Great American Energy’s website at http://www.gamericanenergy.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
Great American Energy, Inc.
Felipe Pimienta, CEO
999 18th Street
This press release includes certain statements that are forward-looking in nature and that involve a number of uncertainties and risks. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this press release are based on Great American Energy, Inc.'s current expectations and projections regarding future events, which are based on currently available information. The forward-looking statements in this press release may also include statements relating to Great American Energy Inc.'s anticipated new developments, business prospects, financial performance, strategies and similar matters. Great American Energy, Inc. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.