Search Minerals Announces Fox Meadow Channel Assays

November 3, 2016

VANCOUVER, November 3, 2016 - Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY), and its wholly-owned subsidiary, Alterra Resources Inc. (“Alterra”), are pleased to report channel assay results from the Fox Meadow (Critical Rare Earth Element) (“CREE”) prospect located in the Port Hope Simpson CREE District in southeastern Labrador (the “District”). Preliminary field and geochemical results prepared by the Company indicate that the Fox Meadow CREE prospect is very similar to the nearby Foxtrot Project resource. The Company holds a 100% interest in the Fox Meadow prospect.

HIGHLIGHTS OF THE FOX MEADOW PROSPECT

  • Assays highlights include: 244 ppm Dy (280 ppm Dy2O3), 1109 ppm Y (1408 ppmY2O3), 1478 ppm Nd (1724 ppm Nd2O3) and 41.2 ppm Tb (48.5 ppm Tb4O7) over 3.48m; and, 198 ppm Dy (227 ppm Dy2O3), 830 ppm Y (1054 ppm Y2O3), 1089 ppm Nd (1270 ppm Nd2O3) and 33 ppm Tb (38.8 ppm Tb4O7) over 7.61m;
  • CREE assay results at Fox Meadow are similar to those at Foxtrot;
  • Fox Meadow has similar or greater surface dimensions than the Foxtrot deposit and the Deepwater Fox prospect; and
  • Fox Meadow is the third large Foxtrot-like mineralized zone discovered in the District.

Greg Andrews, President and CEO comments: “The Fox Meadow prospect is very significant as it, along with the Deepwater Fox prospect, helps validate our belief that in addition to the Foxtrot Project, Search is defining a prolific, strategically significant District in this easily accessible region of southeastern Labrador. The preliminary economic assessment of the Foxtrot Project, our first major discovery in this region, points to an excellent project that can be developed as a stand-alone project at relatively low cost. The addition of Deepwater Fox and now Fox Meadow, has the potential to add to our source feed and could present potential new open pit development options. Our patented metallurgical technology and scalable processing facility design can accommodate multiple sources of material and future expansion without sunk costs. Each additional project and prospect extends the life of the District and provides more options with respect to how soon the Company would have to consider major capital investment in higher cost underground mining.”

He also adds: “Our current financing, which has been increased to support the demand, allows Search to continue to advance the District and initiate the environmental application submissions. The bench scale work of the Pilot Plant has been completed with the data used to procure the equipment and initiate construction of the Pilot Plant. The Pilot Plant will provide key engineering data and a mixed rare earth concentrate to provide to refineries and other separation facilities to produce the individual rare earth oxides along with pricing. With these advancements to the District and the Pilot Plant, we feel the Company is well positioned to attract strategic and offtake partners.”

The Fox Meadow prospect (see Search Minerals news releases October 30, 2013 and August 30, 2016) occurs about 11 km west of Port Hope Simpson and 1 km from a gravelled forest access road. Geological mapping and channelling prepared by the Company indicates that the mineralization occurs in two bands. The northerly band is sampled by four sections of channels that indicate it is at least 39m wide and over 425m long; outcrop mapping extends this zone by an additional 200m. One channel, 5.11m long, cuts the southerly band, which is approximately 100m south of the northerly band; outcrop indicates that this band is at least 200m long. Forest and overburden cover obscure the bedrock geology between the southerly and northerly bands.

Weighted averages of REE and selected incompatible elements for both the northerly (column 1-5) and southerly (column 6) mineralized units are listed in Table 1. Analytical techniques, sample preparation, and channel sampling procedures are outlined in Search’s July 27, 2010 and September 8, 2010 news releases.

The observed surface dimensions of higher grade mineralization at Fox Meadow are similar to the Foxtrot Deposit (10-14m wide and 400m long) and Deepwater Fox Prospect (up to 34m wide and 500m long – See Search’ news release January 27, 2015). A comparison between Fox Meadow, Deepwater Fox and Foxtrot CREE values (Table 2) indicates that CREE values at Fox Meadow are very similar to those at Foxtrot. The Fox Meadow prospect appears to be a third Foxtrot-like mineralized zone in the District.

Follow-up geological mapping, trenching and channelling programs are planned to further evaluate and extend the two mineralized bands and to explore the relationship between these two bands at Fox Meadow in 2017.

TABLE 1 - FOX MEADOW PROSPECT 2016 CHANNEL HIGHLIGHTS

 

FMCC-16-01

FMCC-16-02

FMCC-16-03

FMCC-16-03

FMCC-16-04

SLNS-13-30

(Channel)

(Channel)

(Channel)

(Channel)

(Channel)

(Channel)

From (m)

0.21

 

16.40

 

1.94

 

14.70

 

21.74

 

0.00

To (m)

6.05

 

19.88

 

7.00

 

22.27

 

29.35

 

5.11

Interval (m)

5.84

 

3.48

 

5.06

 

7.57

 

7.61

 

5.11

 

                     

Y

627

 

1,109

 

959

 

757

 

830

 

733

Zr

13,465

 

14,878

 

13,854

 

13,360

 

14,637

 

16,933

Nb

308

 

372

 

358

 

300

 

317

 

320

 

                     

La

760

 

1,090

 

1,062

 

852

 

889

 

767

Ce

1,778

 

2,746

 

2,542

 

1,980

 

2,092

 

1,718

Pr

224

 

363

 

335

 

266

 

284

 

224

Nd

892

 

1,478

 

1,304

 

1,018

 

1,089

 

899

Sm

180

 

307

 

255

 

202

 

223

 

191

Eu

9.0

 

14.9

 

12.8

 

10.6

 

11.7

 

10.0

Gd

142

 

234

 

200

 

170

 

191

 

156

Tb

25

 

41.2

 

32.8

 

29.2

 

32.5

 

26.8

Dy

151

 

244

 

198

 

175

 

197

 

164

Ho

31

 

48.3

 

39.2

 

33.6

 

39.2

 

32.9

Er

88

 

138

 

110

 

96

 

112

 

97

Tm

14

 

20.9

 

16.2

 

13.5

 

16.0

 

15.0

Yb

86

 

124

 

101

 

88

 

104

 

95

Lu

12.4

 

17.5

 

14.2

 

13.0

 

15.6

 

13.7

 

                     

LREE

3833

 

5984

 

5498

 

4318

 

4577

 

3799

HREE

558

 

884

 

724

 

628

 

719

 

611

HREE + Y

1185

 

1993

 

1683

 

1385

 

1549

 

1344

TREE

4391

 

6867

 

6223

 

4947

 

5296

 

4409

TREE + Y

5018

 

7977

 

7181

 

5703

 

6126

 

5142

% TREE

0.44%

 

0.69%

 

0.62%

 

0.49%

 

0.53%

 

0.44%

% TREE + Y

0.50%

 

0.80%

 

0.72%

 

0.57%

 

0.61%

 

0.51%

% HREE

12.70%

 

12.87%

 

11.64%

 

12.70%

 

13.57%

 

13.85%

% HREE + Y

23.61%

 

24.99%

 

23.44%

 

24.29%

 

25.28%

 

26.13%

                       

 

 

TABLE – 2 - FOX MEADOW VS FOXTROT & DEEPWATER FOX

 

FOXTROT RESOURCE

DEEPWATER FOX

FOX MEADOW

 

FOXTROT

HGC

FDC-14-01

FDC-14-01

FMCC-16-02

FMCC-16-04

INDICATED

INDICATED

(Channel)

(Channel)

(Channel)

(Channel)

From (m)

       

0.00

 

18.20

 

16.40

 

21.74

To (m)

       

17.50

 

24.16

 

19.88

 

29.35

Interval (m)

       

17.50

 

5.96

 

3.48

 

7.61

 

                     

Y

1040

 

1230

 

1,284

 

1,433

 

1,109

 

830

Zr

9619

 

11681

 

11,368

 

14,724

 

14,878

 

14,637

Nb

626

 

669

 

850

 

721

 

372

 

317

 

                     

La

1646

 

1936

 

2,243

 

2,301

 

1,090

 

889

Ce

3337

 

3942

 

4,491

 

4,861

 

2,746

 

2,092

Pr

384

 

454

 

507

 

567

 

363

 

284

Nd

1442

 

1704

 

1,893

 

2,156

 

1,478

 

1,089

Sm

262

 

310

 

352

 

413

 

307

 

223

Eu

13.0

 

16.0

 

17.3

 

20.3

 

14.9

 

12

Gd

205

 

244

 

264

 

311

 

234

 

191

Tb

33.0

 

39.0

 

41

 

48

 

41

 

33

Dy

189

 

226

 

241

 

286

 

244

 

197

Ho

37.0

 

44.0

 

47

 

55

 

48

 

39

Er

103

 

123

 

133

 

155

 

138

 

112

Tm

15.0

 

18.0

 

18

 

21

 

21

 

16

Yb

92

 

110

 

111

 

128

 

124

 

104

Lu

14.0

 

16.0

 

16.2

 

18.6

 

17.5

 

15.6

 

                     

LREE

7071

 

8346

 

9486

 

10298

 

5984

 

4577

HREE

701

 

836

 

888

 

1044

 

884

 

719

HREE + Y

1741

 

2066

 

2172

 

2477

 

1993

 

1549

TREE

7772

 

9182

 

10374

 

11343

 

6867

 

5296

TREE + Y

8812

 

10412

 

11658

 

12776

 

7977

 

6126

% TREE

0.78%

 

0.92%

 

1.04%

 

1.13%

 

0.69%

 

0.53%

% TREE + Y

0.88%

 

1.04%

 

1.17%

 

1.28%

 

0.80%

 

0.61%

% HREE

9.02%

 

9.10%

 

8.56%

 

9.21%

 

12.87%

 

13.57%

% HREE + Y

19.76%

 

19.84%

 

18.63%

 

19.39%

 

24.99%

 

25.28%

                       

Note:

All amounts parts per million (ppm). 10,000 ppm = 1% = 10 kg/tonne

   

REE

Rare Earth Elements: La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu (Lanthanide Series).

TREE

Total Rare Earth Elements: Add La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu.

LREE

Light Rare Earth Elements: Add La, Ce, Pr, Nd, Sm.

         

HREE

Heavy Rare Earth Elements: Add Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu.

   

Y

Y not included in HREE due to relatively low value compared to most Lanthanide series HREE.

%HREE+Y

%(HREE+Y)/( TREE+Y)

               

%HREE

%( HREE/ TREE)

               

HGC

High Grade Core (higher grade resource at Foxtrot)

       

 

Qualified Person(s):

Dr. Randy Miller, Ph.D., P.Geo, is the Company’s Vice President, Exploration, and Qualified Person (as defined by National Instrument 43-101) who has supervised the preparation of and approved the technical information reported herein. The company will endeavour to meet high standards of integrity, transparency, and consistency in reporting technical content, including geological and assay (e.g., REE) data.

About Search Minerals Inc.

Led by a proven management team and board of directors, Search is focused on finding and developing resources within the emerging Port Hope Simpson Critical Rare Earth Element (CREE) District of SE Labrador. The Company controls a belt 70 km long and 8 km wide including its 100% interest in the FOXTROT Project which is road accessible and at tidewater. Exploration efforts have advanced “Deepwater Fox” and “Fox Meadow” as significant new CREE prospects very similar and in close proximity to the FOXTROT discovery. While the Company has identified more than 20 other prospects in the District, its primary objective remains development of FOXTROT by confirming proprietary processing technology at the pilot plant level (in progress) and delineation of prospects that will ensure competitive-low cost production beyond the 14-year mine life contemplated in the preliminary economic assessment of FOXTROT completed in April 2016. The FOXTROT Project has a low capital cost to bring the initial project into production ($152 M), a short payback period, and is scalable due to Search’s proprietary processing technology.

All material information on the Company may be found on its website at www.searchminerals.ca and on SEDAR at www.sedar.com

About CREE’s

Identified as Neodymium (Nd), Europium (Eu), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y), this valuable subset of the complete series of seventeen rare earth elements is considered critical due to high demand and/or constrained domestic supply. Containing unique properties which enhance the performance of a range of innovative technologies, CREE’s are essential components in the development of permanent magnets and a variety of other components used in renewable energy, green technology automobiles, medical devices, electronics and agricultural production.

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 for the adequacy or accuracy of this release.

For further information, please contact:

Greg Andrews

President and CEO

Tel: 604 998-3432

E-mail: info@searchminerals.ca

Paul Snow

Investor Relations

Tel: 709 753-0794

E-mail: psnow@pilotcom.ca

Cautionary Statement Regarding “Forward-Looking” Information.

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, without limitation, statements relating the future operating or financial performance of the Company, are forward-looking statements.

Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or “should” occur or be achieved. Forward-looking statements in this news release relate to, among other things future events or the Company’s future performance, business prospects or opportunities. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; and those additional 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 of this news release and no assurance can be given that such events will occur in the disclosed time 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.