get in while still cheap..................................


Sierra Rutile Ltd
Rare earth mineralization confirmed at SRL
RNS Number : 2662C
Sierra Rutile Limited
03 March 2011



4 March 2011

SRX:AIM



Rare earth mineralization confirmed at Sierra Rutile mine

Highlights

Rare earths mineralization confirmed by independent laboratory at grades of 2.2% in existing HTT stream

Rare earth mineralization contained in a by-product stream of existing and ongoing rutile production, which has already been mined and partially processed

Study commenced to evaluate processing requirements to further separate and recover rare earths

Sierra Rutile Limited announces that SGS Lakefield Research Limited ("SGS") has confirmed the existence of rare earth oxides ("REOs") at a grade of 2.2% in Sierra Rutile's high-tension tailings ("HTT") stream. As part of the Company's recently announced strategic review update, significant rare earth mineralisation was identified and, following SGS' independent assessment, the Company is now exploring opportunities to refine and market these REO by-products.

The distribution of REOs in the HTTs is attractive and contains high concentrations of neodymium, lanthanum and praseodymium. HTTs are produced from Sierra Rutile's existing dry processing plant and, as such, the REOs are not in the ground, but in a by-product stream from Sierra Rutile's existing production of rutile and ilmenite. The HTTs are the same source from which Sierra Rutile already recovers its zircon by-product by re-processing it through the dry processing plant.

Sierra Rutile will now commence a study into how best to separate and recover the REOs from the HTTs. This will consider both the optimization of Sierra Rutile's existing dry processing plant and the potential addition of further processing facilities to realize the value of the REO in the HTTs. Sierra Rutile will also analyse its existing stockpiles of HTTs from historical production to determine the availability of REOs in these stockpiles. The Company will announce the results of the study and analysis in due course.

John Sisay, Chief Executive Officer of Sierra Rutile, commented, "The independent confirmation of rare earth mineralization in the tailings stream is a positive step and we now have clarity on the type and extent of these minerals. Sierra Rutile is assessing the feasibility of future rare earth production given the relatively attractive cost position of processing rare earths which are already extracted and significantly refined as part of our normal rutile separation process. The market dynamics and long-term fundamentals of the REO industry are attractive and we have therefore taken the decision to proceed with further studies."

Sierra Rutile's existing operations generate approximately one tonne of HTTs for every two tonnes of rutile produced. The Company's 2010 rutile production of 68,000 tonnes produced approximately 34,000 tonnes of HTT last year.

Samples from 14 locations in the HTT stream were analysed by SGS. Locations were chosen based on processing methods, the conductivity and radioactivity of processed material, and the chemical properties of REOs.

The distribution of REOs compare well to the deposits of non-Chinese rare earths companies (the "Comparator Group", as defined below) (refer to Figure 1). None of the Comparator Group companies are in commercial production at this stage.

Figure 1

Rare Earth Distributions
SRX Tailings sampled - Rare Earth Distribution (%)1
Rare Earth Comparator Group Distribution (%) 2








Light Rare Earths





Lanthanum
22.78%
21.34%

Cerium
49.33%
40.83%

Praesoodymium
4.84%
4.57%

Neodymium
19.37%
16.14%

Samarium
2.56%
2.60%








Heavy Rare Earths





Europium
0.08%
0.37%

Gadolinium
0.57%
1.55%

Terbium
0.05%
0.29%

Dysprosium
0.14%
1.48%

Holmium
0.03%
0.27%

Erbium
0.10%
0.76%

Ytterbium
0.15%
0.67%

Lutetium
Testing in Process
0.12%








Other





Yttrium
Testing in Process
8.62%

Scandium
Testing in Process
0.00%

Other
0.00%
0.40%








Total
100.00%
100.00%








1 Testing of yttrium, lutetium and scandium is still in process.

2 Comparator group comprises rare earth companies only, including Lynas, Molycorp, Great Western Minerals, Arafura, Avalon, Quest, Rare Element and Ucore




Using the samples tested by SGS and applying current REO prices, the potential value of the total contained REOs in the sampled HTT stream is US$104.2/kg of REO. This value excludes yttrium, lutetium and scandium, for which testing remains ongoing. The US$104.2/kg of REO compares favourably to the Comparator Group, for which the contained value of REOs is US$111.5/kg of REO (refer to figure 2). The REO grade of the HTT samples, as tested independently, is 2.2%, implying a REO value of approximately US$2,258 per tonne of HTT.

Figure 2


Value of REOs in tailings
SRX sample tailings - value of processed REO (US$/kg) 3
Rare Earth Comparator Group (US$/kg)








Light Rare Earths





Lanthanum
20.5
19.2

Cerium
44.4
36.8

Praesoodymium
6.5
6.1

Neodymium
28.1
23.4

Samarium
2.3
2.3








Heavy Rare Earths





Europium
0.6
2.7

Gadolinium
0.6
1.6

Terbium
0.3
2.1

Dysprosium
0.6
6.6

Holmium
0.0
0.1

Erbium
0.1
0.4

Ytterbium
0.2
0.9

Lutetium
Testing in Process
0.4








Other





Yttrium
Testing in Process
8.9

Scandium
Testing in Process
-








Total
104.2
111.5






















Grade of tailings (%)
2.2%



Implied value of REO in SRX sample tailings (US$/tonne)
2,258.9










3 Prices as at 25 February 2011 from Metals Pages for all elements except holmium, erbium, ytterbium and lutetium, for which estimates have been taken




ENDS

Sirius Minerals Plc

("Sirius" or the "Company")

Initial Planning Applications Approved

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, are pleased to announce the approval by the North York Moors National Park Authority of the planning applications for the first two drill sites for the York Potash Project.

In a meeting held today (16th June) in Helmsley, North Yorkshire, the North York Moors National Park Planning Committee met to consider the first two of up to 10 drill site applications. The Members of the Committee approved the applications following the positive Officers' recommendation. The approval today was granted by a vote of the Members and the Company will be officially notified in writing in the coming days.

A further three applications have also been submitted prior to this meeting for consideration and are due to be consulted upon in the normal course of the planning process. These applications were not put before this meeting of the Committee as the consultation process is not yet complete.

Chris Fraser, Managing Director and CEO of Sirius, said:
"We are extremely pleased to be moving forward with our drilling programme. We believe the York Potash Project is world-class and of significant national importance to the United Kingdom. This drilling programme will help us define further the extent and quality of the potash deposit. It is our intent to commence site preparation works and then drilling as soon as practicable.

"The delivery of the approvals is in no small part due to the prompt and professional attention which our applications have received from the National Park Authority. We look forward to a continued and similarly professional association with the Officers and Members over the forthcoming years as we push forward with the York Potash Project."
For further information, please contact:
Sirius Minerals Plc

Chris Fraser
(MD & CEO)
Tel: +44 7582711382 or

+61 404 073 288
Andrew Lindsay
(FD & CFO)
Tel: +44 20 7917 2800

NOMAD
Joint Brokers
Media Enquiries

Beaumont Cornish Limited
XCAP Securities Plc
Daniel Stewart & Company Plc
Gth Media Relations

Roland Cornish/ James Biddle
John Grant, Karen Kelly, David Newton
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Toby Hall/Christian Pickel

Tel: +44 207 628 3396
Tel: +44 20 7101 7070
Tel: + 44 20 7776 6550
Tel: + 44 20 3103 3903
About Sirius Minerals Plc

Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (North Yorkshire), the United States (North Dakota), and Australia (Queensland and Western Australia).

The Company is additionally progressing ongoing Research and Development initiatives into the secondary uses of salt and potash beds for energy storage and carbon dioxide sequestration.

Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market. Its shares are also traded in the United States on the OTCQX through the use of a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com

another good day :-))))

gibby

Do you hold KMR , just the type of company that the Chinese would be interested in.

morning aldwickk - kmr - yep i have a small holding there and keeping my toe in - and agreed i am sure the chinese are watching them closely (i hope so anyhow!) if they t/o it will be when least expected

another blue day here so far and so it should be - gl

Morning gibby , can you put a chart in the header

cheers cynic

Look's like Kenmare [ red ] still as a lot of catching up to do

indeed yes, going in opposite directions :-)))

Kenmare is about level now , gibby