Quantum Rare Earth Developments Corp. (CVE:QRE)(OTCQX:QREDF) announced Wednesday its maiden resource estimate for the Elk Creek niobium deposit in southeastern Nebraska, indicating inferred resources of 83 million tonnes.
Using a base case cutoff of 0.4% Nb2O5, the first NI 43-101 compliant estimate concluded inferred resources of 83.4 million tonnes at 0.62% Nb2O5.
"We are greatly encouraged by these exceptional results, as they provide the United States with the opportunity to develop a domestic supply of Niobium - a country which currently imports almost 100 per cent of its consumption," said president and CEO Peter Dickie.
The Elk Creek niobium deposit is an east-west orientated mineral occurrence, in excess of 800 meters along strike, and remains open to the east, west and at depth. Niobium is used mostly in alloys, the largest part in special steel such as that used in gas pipelines. It is also used for jet and rocket engines and in various superconducting materials.
The property was held under an option agreement during the 1970s and 1980s by Molycorp, at which time considerable exploration took place. At least 113 core holes were completed, with 25 holes drilled within a core zone, where high-grade niobium mineralization was identified, said Quantum.
Quantum itself is planning an active exploration program on Elk Creek in 2011, with an airborne and magnetic survey scheduled for the end of March. Once this is complete, the company will undertake a 3,000 metre drill program to expand the existing resource, anticipated to begin during the latter part of April.
Quantum also intends to step out beyond the rare earth element mineralization previously reported in hole EC-93, which intersected 155.5 metres of 2.70% Total Rare Earths Oxide (TREO).
The new NI 43-101 compliant resource estimate for Elk Creek was prepared by Toronto-based Wardrop.