Replies to post #650 on Quest Rare Minerals Ltd. (fka QRMLF)

[ellwodo]

The news release just came out, but it doesn't say much about the update. I still need someone's help in figuring out whether the news is good or bad.

[Crusader]

ellwodo: it's the 4th revised model

for the current study, and it is purely technical. IT IS NOT NEWS, PER SE, BUT RATHER IT IS AN UPDATED STATEMENT OF THE PROCESS BEING FOLLOWED TO DETERMINE IF IT IS WORTH GOING FORWARD ON BUILDING A MINE. It is the basis/model for the "pre-feasibility study" of the Corporation's Strange Lake B-Zone rare earth element deposit, located in northeastern Québec.

First there needs to be a "Preliminary Study" or "Oder of Magnitude Study". Then second, a "Pre-feasibility study" is eventually arranged if warranted. This QRM pre-feasibility study is a necessary project to be completed towards the end of 2011, and it has been budgeted at $7.5 million. THE FINAL REPORT CONCLUSIONS OF THIS STUDY WILL BE BIG NEWS IN LATE 2011.

The usual series of mining studies are:

http://en.wikipedia.org/wiki/Mining_feasibility_study

"Preliminary feasibility studies" or "prefeasibility studies" are more detailed than order of magnitude studies. A preliminary feasibility study is used in due diligence work, determining whether or not to proceed with a detailed feasibility study and as a "reality check" to determine areas within the project that require more attention. Preliminary feasibility studies are done by factoring known unit costs and by estimating gross dimensions or quantities once conceptual or preliminary engineering and mine design has been completed. Preliminary feasibility studies are completed by a small group of multi-disciplined technical individuals and have an accuracy within 20-30%.

If warranted, the the next study is arranged. It is a bankable study that a lender could depend upon.

"Detailed feasibility studies" are the most detailed and will determine definitively whether or not to proceed with the project. A detailed feasibility study will be the basis for capital appropriation, and will provide the budget figures for the project. Detailed feasibility studies require a significant amount of formal engineering work are accurate to within 10-15% and can cost between ½-1½% of the total estimated project cost.

HOW WOULD YOU DO A PRESS RELEASE UPON ALL THIS? IT IS GENERALLY REFERRED TO IN THE LAST TWO SUBSTANTIVE PR'S FROM THE COMPANY (NOT INCLUDING THE AMEX PR). Check them out.