RARE EARTH PROJECT

 In our last press release dated 12/20/2010 we mention the existence of rare earth values in our ore. Sampling and testing data dating back to 2003 has shown the presence of these metals in our ore. However, it is only recently that this group of metals has gained the national spotlight. Many shareholders have contacted the company asking for more information on this group of metals and what opportunity they do or do not present for our company.

 Before getting into specifics, it may be helpful to identify what these “Rare Earth Elements” are, how they are used and who is producing them. Rare Earth

Elements are a vital component of “green” transportation applications and other developing technologies. Currently these elements are used by many of us unknowingly each day. Cell phones, computers, hybrid automobiles, flat panel televisions, fiber optics and fluorescent light bulbs are just a few of the  devices which require rare-earth elements.

                                       RARE-EARTH ELEMENTS

Scandium (SC)
Cerium (CE)
Yttrium (Y)
Praseodymium (PR)
Neodymium (ND)
Samarium (SM)
Europium (EU)
Gadolinium (GD)
Terbium (TB)
Dysprosium (DY)
Holmium (HO)
Erbium (ER)
Thulium (TM)
Ytterbium (YG)
Lutetium (LU)
Lanthanum (LA)

The largest user of these elements is our military. Applications ranging from satellites to defense systems rely on these strategic elements.  In years past these elements were inexpensive and the market was limited. However, with the growth of “green technology” usage has increased and China has become the major provider of these elements. In fact, it is reported that the Chinese control 95 -97% of all rare-earth production on the planet. It is no wonder that our country’s leadership is now concerned as China has said it plans to restrict its future production of these strategic elements. In recent weeks prices on these elements have increased and there have been stories spotlighting this growing dependence on the Chinese. Securing a consistent supply of rare earth elements has become a national strategic issue.

In the early 2000’s sampling was done on our claims which, in addition to traditional precious metals, showed the presence of rare earth metals. At that time there was a small market for these elements and we did not have the technology to produce them commercially.

In 2008 sampling was done from cores held in our drilling library. The original drilling occurred over 9/10 of a mile which consisted of 2 core drilling holes which totaled 1,120 feet and 2 rotary drilling holes totaling 600 feet. Samples were sent to Rocky Mountain Inspectorite. The analysis indicated commercial grades of many rare earth metals.

Testing done at the Pele Facility ( our joint venture partner) suggest that  rare earth metals could be a byproduct of our recovery leeching system when we begin operations later this month.

Pershing Resources is already permitted to begin drilling the first of a planned 10 (1000 ft) holes to ascertain the potential for rare earth and precious metals. We are in the process of hiring a 43101 Certified Geologist to set drilling rigs and gather samples. The drilling and trenching which we plan should enable us to gauge the extent of a variety of mineralization zones on the property.

NOTE: A number of statements contained in this press release are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties including but not limited to: competitive market conditions, successful integration of acquisitions, and the ability to secure additional sources of financing. The actual results that PSGR may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.

Back to news page