News Releases

Search Minerals Inc. Discovers Additional Heavy Rare Earth Element Mineralization in the Port Hope Simpson REE District, Labrador

August 26th, 2010

VANCOUVER, BRITISH COLUMBIA—-(Aug. 26, 2010) - Search Minerals Inc. (TSX VENTURE:SMY) (“Search” or “the Company”) and its wholly owned subsidiary, Alterra Resources Inc. (“Alterra”), have discovered additional heavy rare earth element-enriched (HREE) mineralization in two new showings west and southwest of Port Hope Simpson, in the Port Hope Simpson REE District in SE Labrador. Mineralization at these showings, Rock Rolling Hill and Rattling Bog Hill, is hosted in granitic pegmatites.

Highlights: (See Table 1 for details)

  • Rock Rolling Hill and Rattling Bog Hill showings contain HREE in granitic pegmatite swarms;
  • HREE/Total REE ranges from 30.58% to 91.67%, and HREE+Y/Total REE+Y ranges from 51.94% to 96.63%;
  • Nb values range from 2373 to 7623 ppm and Y values range from 1420 to 4792 ppm; and
  • Three HREE showings and a highly prospective Zr-Nb-Y-LREE peralkaline volcanic zone now reported in the Port Hope Simpson REE district.

(HREE = Heavy Rare Earth Elements; Total REE = Total Rare Earth Elements; Y = Yttrium; Nb = Niobium; Zr = Zirconium)

Jim Clucas, President and CEO of Search notes, “The ground program, which commenced this May, 2010, is being led by Dr. Randy Miller and supported by 10 geologists, 12 prospectors and 3 support staff. The exploration work continues to meet with success with a total of 4 prospective areas being identified. Over 1,700 samples have been collected and assayed and approximately 300 metres of channel sampling has been cut and logged, with some assays pending. Drilling programs are currently being planned and drill tenders are being sought for the Island Prospect showing.”

Initial REE and rare metal results from grab samples are available for two showings in the St. Lewis North Shore area of the Port Hope Simpson REE district: Rattling Bog Hill and Rock Rolling Hill Showings. REE mineralization at these showings occurs in two granitic pegmatite fields that contain up to 5 known pegmatites ranging from 3 to 10 m wide. The mineralization occurs in unidentified REE and rare metal-bearing minerals. 

TABLE 1:              
   
  ROCK ROLLING HILL   RATTLING BOG HILL  
  SLNS- SLNS- SLNS- SLNS- SLNS- SLNS-  
  1004 1005 2001 1007 1046 1047  
  ppm ppm ppm ppm ppm ppm  
               
Y 2,354 4,792 3,915 1,420 3,366 2,963  
Zr 253 221 4,005 1,322 747 575  
Nb 4,949 7,623 4,900 2,373 4,130 4,160  
               
La 6 6 829 26 9 105  
Ce 21 26 2,490 78 36 290   Light
Pr 7 9 369 13 8 36   REE
Nd 75 95 1,770 77 65 175  
Sm 104 158 656 65 73 91  
Eu 3 3 8 2 3 3  
Gd 234 402 599 139 169 169  
Tb 63 113 107 38 48 44  
Dy 504 908 695 299 423 379   Heavy
Ho 115 209 150 69 111 96   REE
Er 354 644 483 212 427 363  
Tm 49 92 75 30 85 69  
Yb 312 585 500 190 702 562  
Lu 49 93 76 31 130 105  
               
TREE 1,895 3,343 8,807 1,267 2,289 2,488  
TREE + Y 4,249 8,135 12,722 2,687 5,655 5,451  
HREE 1,683 3,049 2,693 1,009 2,098 1,791  
HREE + Y 4,037 7,841 6,608 2,429 5,464 4,754  
%HREE 88.82% 91.22% 30.58% 79.61% 91.67% 72.00%  
%HREE + Y 95.01% 96.39% 51.94% 90.38% 96.63% 87.22%  
 
REE Rare earth elements = La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu (the Lanthanide Series).  
TREE Total rare earth elements = total (ppm) of the Lanthanide Series elements.  
LREE Light rare earth elements = La, Ce, Pr, Nd, Sm.      
HREE Heavy rare earth elements = Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu.    
Y Herein not included in HREE due to low market value compared to most Lanthanide series HREE.    
%HREE+Y (HREE+Y)/( TREE+Y)    
%HREE HREE/ TREE    
     

Trenching, detailed prospecting and an extensive sampling program are currently underway to evaluate these showings and to outline new pegmatite-hosted REE mineralization in the area. Channel samples, 8 cm. wide and 10 cm deep, are also being taken to evaluate pegmatite bulk chemistry and to document pegmatite geology.

The Rock Rolling Hill Showing occurs within 1 km of a seasonal logging road and within 6 km of the community of Port Hope Simpson. The Rattling Bog Showing occurs within 2 km of the all season, maintained, Trans-Labrador Highway and within 3 km of the community of Port Hope Simpson. Port Hope Simpson contains a port facility, small aircraft airport, several sawmills, a hotel and restaurants.

The Port Hope Simpson REE District now contains three HREE-enriched showings: High REE Island Prospect, Rattling Bog Showing and Rock Rolling Hill Showing. The Fox Harbour zone, which is highly prospective for Zr-Nb-Y-LREE in peralkaline volcanics, is also located within the Port Hope Simpson REE District. The exploration program is continuing in these and other highly prospective areas in the Port Hope Simpson REE District.

Dr. Randy Miller, Ph.D, P.Geo, Vice President Exploration, is the Qualified Person responsible for the technical content of this press release.

About Search Minerals Inc.

Search Minerals Inc (TSX VENTURE:SMY) has a strong and dedicated management team with outstanding capabilities in separate but related mining activities, any of which has the potential to generate significant shareholder value. Search’s mineral exploration team is led by Vice President Exploration Dr. Randy Miller. Dr. Miller is responsible for directing the current exploration programs on Search’s large land position in Labrador. Search also has a technology arm headed up by Dr. David Dreisinger, Chair of Hydrometallurgy at the University of British Columbia in Vancouver, Canada, and a consultant to several major international mining companies. Search’s business strategy is to fund ideas or concepts in the mineral exploration or metallurgical fields that have low initial costs.

Cautionary Statement:

This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward- looking statements. Factors that could cause actual results to differ materially from these forward- looking statements include those risks set out in Search’s public documents filed on SEDAR at www.sedar.com. Although Search believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility of the adequacy or accuracy of this release.

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