The Anchor House, Inc.
Research on Rare Earth Elements

The Anchor House, Inc.

Digging at Deep Sands for Rare Earth Elements

March 12th, 2008

By Clint Cox

Great Western Minerals Group and Titan Mining Group LLC hosted a group tour of their new Deep Sands project on 25 February 2008. There were a number of us present at the SME conference in Salt Lake City, and since it is only about 3 hours away, they offered a one day excursion to the site:

deepsands_pan1

The picture above shows the site from the east (looking west). The site includes almost the entirety of what you see from left to right at the foot of the mountains.

John Pearson, VP of Exploration for Great Western, discussed the site location on a map:

map_hand

The site is vast — over 66 square miles and is a joint venture in which Great Western holds a 25% interest in the REEs (they can earn a 100% by completing the necessary work for a Preliminary Economic Assessment Report, determining a fair value for the property and entering into a definitive purchase arrangement). Titan holds the remaining interest. The area includes much of the Lake Bonneville paleo beaches, so they will be looking for REEs in sandy material — not hard rock. Random samples have shown the area to have from 0.14% to 0.80% TREO.

They have just begun work at the site, but they were able to show us several holes with magnetite showings (that also have monazite) and also two outcroppings.

The first hole:

hammer_pit

The blackish layer near the bottom of the pit is the magnetite layer. Because this was during the SME conference, we had excellent commentary about the geology and markets from a diverse group of knowledgeable REE sources.

From this hole we drove across the property to observe an outcropping. After that we had lunch and then journeyed to a second, larger outcropping:

deepsands_outcrop

At this point, several of us climbed the side of the hill, dug a hole, and took samples of the sand:

hillside_hole

Once again, we are looking for the dark layers of magnetite.

We spent a few hours on site, and then headed back to Salt Lake City. Perhaps the most entertaining part of the day was a short stop at a rock shop in Delta, Utah, on the return trip. It can be a load of fun to see a van load of geologists and rock hounds descend on the local rock shop at closing time!

Deep Sands is in the very early stages and there is plenty of work to be done, but we will be following the progress of the project as they explore further and look for areas of concentrated REE.

Thanks to Great Western and Titan Mining for a great day in the desert.

Rare Earths Explored in Salt Lake City

March 7th, 2008

By Clint Cox

On February 26th, the rare earth community gathered for an entire morning of REE talks during a special session at the annual SME conference in beautiful Salt Lake City (the Great Salt Lake pictured below).

salt_lake

The session was titled “Rare Earths – Mining, Geology, and Metals” and was chaired by James Hedrick of the US Geological Survey. It was well attended. The schedule is listed below (my comments follow each):

Magnetic Refrigeration/Heat Engines
K. Gschneidner and V. Pecharsky; Ames Laboratory and Department of
Materials Science and Engineering, Iowa State University, Ames, IA

Karl Gschneidner gave excellent insight as to what the future may hold in magnetic refrigeration. Gadolinium is the chief rare earth element used in the technology, but he also made it clear that there are lots of materials being researched for this application. On 20 February 1997, magnetic refrigeration was proven to be viable, but we may still be years away from mainstream magnetic refrigeration. At this point 29 machines have been built (that we know of).

Significance of REE-, BA-, and F-RICH Primitive, Ultrapotassic Dikes
in the Southern Mountain Pass District, Mojave Desert, California

G. Haxel; U.S. Geological Survey, Flagstaff, AZ

Gordon Haxel gave a fascinating — and highly technical — presentation on the shonkinites at Mountain Pass. He gave great insight about the different rock types and essential elements of the Mountain Pass geological structures.

Criteria for the Evaluation of REE Deposits on a World Level
A. Mariano1, J. Hedrick2 and C. Cox3; 1Consultant, Carlisle, MA; 2Minerals
Information Team, U.S. Geological Survey, Reston, VA and 3The Anchor
House, Inc.

Anthony N. Mariano spoke about evaluating REE deposits around the world. The key slide he presented discussed the criteria for evaluating REE deposits:

ree_reqmts

Dr. Mariano went on to give specific examples of critical REE minerals and their deposits.

Thorium and rare earths in the Lemhi Pass region
R. Reed1 and V. Gillerman2; 1Idaho Engineering & Geology, Inc., Boise, ID and Idaho Geological Survey, Boise, ID

Reed and Gillerman provided a fresh look at the Lemhi Pass region of Idaho using new and updated data. They have established that the project has a large amount of thorium and 0.52% REO.

Ion-Absorption Type Lanthanide Deposits
R. Grauch1 and A. Mariano2; 1Mineral Resources Team, US Geological Survey, Denver, CO and 2consultant, Carlisle, MA

Grauch gave the best presentation I have ever heard on the South China ion-absorption clays. He stressed the importance of the clays to the REE industry. He showed a detailed map of the five provinces that have the deposits and explained that there were more than 100 such sites known in China.

Rare Earths Supply: the Alternatives to China
D. Kingsnorth; Industrial Minerals Company of Australia, Perth, WA, Australia

Kingsnorth furnished great statistics for the standing-room only crowd. He predicted a 9-11% growth rate for the industry, and displayed charts showing that China may absorb the entirety of its own production by 2012. He discussed the shortage of dysprosium (Dy), neodymium (Nd), europium (Eu), and terbium (Tb). He also explained that provinces that produce rare earth want to encourage the growth of local manufacturing by having companies come in and build plants there rather than exporting the rare earths.

Geology, Setting and Development of the Hoidas Lake Rare Earth Element Deposit
G. Billingsley, J. Pearson and K. Halpin; Great Western Minerals Group Ltd., Saskatoon, SK, Canada

Billingsley gave an update on progress at the Hoidas Lake project. He detailed some of the new developments in sorting and processing the ore, and updated the value of the oxides at Hoidas. During my trip to Salt Lake I was able to go with Great Western to their new Deep Sands project — I will have more on that soon.

Rare-Earth Operations at Chevron’s Mountain Pass Mine, California
J. Benfield; Chevron Mining Inc., Mountain Pass, CA

Benfield gave a thorough update on recent plans for Mountain Pass. Chevron Mining has been training new managers and is gearing up for a three phase start-up. They hope to be in full operation by 2012. They are also actively researching new technologies to use rare earths.

It was a wide-ranging conference covering distinctly different aspects of the REE industry. The crowd was a good mix of REE legends, new-comers, geologists, engineers, and financiers. I certainly hope that they decide to do this again next year, as it was an excellent forum to learn many aspects of the business and get to mingle with some very knowledgeable people.