KAT Exploration Inc (KATX)

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1.1% total rare-earth oxides with heavy REE representing up to 67% of the total rare-earth-oxide component seems to be good enough for Rare Element Resources betting on Rare Earth Element plus gold potential within altered peralkaline felsic volcanic rocks same as Rusty Ridge

http://www.resourceinvestor.com/News/2010/1/Pages/Rare-Element-acquires-Nuiklavik-Rare-Earth-Project-in-Labrador-Canada.aspx

Rare Element acquires Nuiklavik Rare Earth Project in Labrador, Canada

Press release
Published 1/7/2010
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VANCOUVER, Jan. 7 /PRNewswire-FirstCall/ - Rare Element Resources Ltd (TSX-V: RES) is pleased to announce the acquisition of the Nuiklavik rare-earth-element (REE) prospect from Altius Resources Inc. ("Altius"). The property is located approximately 25 kilometers from tide water and 50 kilometers from the community of Hopedale, Labrador, Canada.

Altius initiated the project in 2006 to target volcanic-hosted uranium-type deposits. Previous work in the 1980s and 1990s by the Geological Survey of Newfoundland and Labrador ("GSNL") included regional lake-sediment sampling, mapping, and various follow-up geochemical studies targeting lake-sediment anomalies. The GSNL identified and documented twenty-four yttrium-zirconium-niobium-REE, fluorine and base-metal occurrences at Nuiklavik and prepared reports which investigated REE enrichment within the Nuiklavik volcanic rocks.

The geology underlying the Nuiklavik property comprises Precambrian peralkaline volcanic and plutonic rocks. The area is geologically similar in age and geochemical character to the Strange Lake peralkaline complex, which hosts the Strange Lake REE deposit. Both the intrusive suite at Nuiklavik and the Strange Lake complex comprise circular-shaped features of peralkaline granite with elevated Zr-Y-Nb and REE geochemical signatures.

More recent work by Altius included a high resolution helicopter-borne magnetic and radiometric survey with follow up geological mapping and prospecting. This work by Altius over two field seasons resulted in the discovery of numerous additional uranium and rare-earth occurrences in both volcanic rocks and felsic dikes which cut the overlying volcanic package. Limited sampling of the felsic dikes and other felsic intrusive rocks by Altius yielded up to 1.4% zirconium oxide, 1.27% yttrium oxide, 1.15% niobium oxide, and 1.1% total rare-earth oxides with heavy REE representing up to 67% of the total rare-earth-oxide component.

Rare Element has agreed to acquire 100% of the project for the payment of 200,000 common shares and the granting of a Gross Overriding Royalty of 2% to Altius