Replies to post #498 on Ucore Rare Metals Inc (UURAF)

[maybe_this_time]

Seems like the gubbamint sound lend Ucore the 221 million so the military can have it's secure rare earth elements source.

[alaskaguy]

Something to keep in mind with inferred resources is that they are the lowest level of confidence in the resources category, and resources are less proven than reserves. See http://en.wikipedia.org/wiki/Mineral_resource_classification. There's a cautionary note at the end of that PEA article. It's really misleading for them to exaggerate them like that. Par for the course, but borderline fraudulent.

The best article on rare earths, which includes Ucore, is http://www.resourceinvestor.com/2011/08/29/every-good-geologist-knows-grade-is-king by Mercenary Geologist Mickey Fulp. His analysis is copied:

Ucore Rare Minerals Inc. controls Bokan Mountain in extreme southern Alaska, 60 km southwest of Ketchikan. The project is located in a cold rain forest and is accessible via boat, float plane, or helicopter, which the company views as "excellent logistics". The project area was previously mined for uranium and the company, like many of its REE brethren, was a uranium explorer until mid-2009.

Dotson Ridge is a narrow, steeply dipping, vein-dike deposit with a 43-101 inferred resource of 3.7 million tonnes grading 0.75% TREO at a cut off of 0.5%. About 38% are heavies giving a grade of 0.29% HREOs and 0.46% LREOs.

Compare that with Steenkampskrall at 0.89% HREOs and 10.9% LREOs.

During a tour of Bokan Mountain a year ago, I determined that individual veins average less than 0.5 meters wide, and have little strike continuity. There was sparse information on continuity with depth.

Because of the low grade, potential fatal flaws are the high cost of narrow vein mining and wall rock dilution that will necessitate separation of waste from ore prior to grinding and concentration. My recommendation to Ucore was to immediately apply for an Alaska small mine permit for underground access to drill, test mine, and bulk sample during the 2011 field season. I never received a response to my letters.

Therefore, I concluded that Ucore is unlikely to advance the project in a timely fashion. It appears to me the corporate exit strategy is to wait for a takeover offer and/or government financial assistance. But with 149 million shares outstanding, 174 million fully diluted, and a 2011 burn rate of over $9 million, I opine that one of these scenarios must happen soon.

I really agree with Mickey Kulp's view on mine investing. It's unfortunate that more people aren't more critical in the mining investment world. A lot of people lose a lot of money - most junior mining company investors are not that savvy, in my opinion. Kulp notes the following at http://www.mercenarygeologist.com/mercenary_musings/musing-081215-Share-Structure-People-and-Projects-A-Primer-for-the-Lay-Investor.pdf:

100% of junior resource companies - 50% on Flagship Property - 25% on Share Structure - 15% on
Management and Technical Teams - 5% on Website Presentation = 5% of All-Listed Junior Resource
Companies, or 1 in 20 pique my initial interest.
There are approximately 1750 Canadian juniors on the Toronto Venture and Toronto Stock Exchanges.
Let’s do the arithmetic:
A measly 5% or 85-90 junior resource companies will pass the initial 15-20 minute test and website
perusal and have the requisite Share Structure, People, and Projects to qualify for further evaluation by
the Mercenary Geologist

[Tommy]

$UURAF - UCU.V - The Rare Earth Exploration Space in 2013: A Well-Positioned Company

http://www.discoveryinvesting.com/uploads/MNs_Thursday_December_13__2012.pdf

[betahighlander]

Tommy- I am looking at the REE space and find this one interesting- lower capex, US, away from tree huggers, mine near port- but on a remote island.
what are some of the milestones ahead. Bureau of land management? State requirements- "additional mine research?"
Are they just looking to package this and sell or to go the whole production route? In your opinion of course.

"MacDonald said the company anticipates beginning mine construction in 2015"