TUC Resources Soars on Heavy Rare Earths Find at Stromberg

TUC Resources shares soar following intersections of very high grades of over 90% heavy rare earth at its Stromberg Heavy Rare Earth prospect in the Northern Territory. Shares were up $0.141 a share, up over 113% before trending down to 96.72% at $0.12 a share.

Diamond drilling at the prospect returned 4.2 metres at 0.93% total rare earth oxide with 92% heavy rare earth oxide and included 3 metres at 1.19% TREO.Other intersections included 3 metres at 0.59% TREO including 1 metre at 1.10% TREO with 94% heavy rare earth oxide.

The clay host rock allows the conclusion that the geological processes that have formed at the Stromberg Prospect are similar to those that produced the renowned Southern China Clay rare earth deposits.

The Chinese rare earth deposits are at the forefront of rare earth production because the majority have very low production costs.

TUC hopes to find mineralisation with similar mineral processing characteristics to these Southern China Clay deposits and theorises its chances of doing so are increased due to the large number of prospects on its ground. It recently made breakthroughs in land access that allows it to target nearby Skyfall and Largo prospects.

TUC intends to focus 2013 exploration efforts on this large district potential with work planned to commence next month. Separately, it has entered into a memorandum of understanding with China's Shandong Provincial Bureau of Geology and Mineral Resources to form an alliance for the exploration of eight heavy rare earth tenements in the Stromberg region.

As part of the MoU, TUC will place 22.5 million shares to Shandong at an issue price of $0.10 a share together with 9 million free attaching options to raise a total of $A2.25 million. The options can be exercised at $0.20 a share before 14 August, 2014.

This new partner would fully fund the feasibility , design and importantly construction in return for a 50% share of that project and certain off-take rights.

Stromberg REE tenements

TUC Resources Ltd holds approximately 15,000 square kilometres of prospective land package across 47 (28 under application) tenements making it one of the biggest ground holders in the Northern Territory of Australia.

Last year, TUC focused on developing its Stromberg heavy rare earth elements project towards resource status with additional metallurgical testing. It also undertook geochemical sampling on the nearby Scaramanga and Knightfall prospects.

The Scaramanga prospect was drilled and yielded promising results with first pass drilling  delineating more near surface mineralisation with a high HREE distribution. Dysprosium, Yttrium and Erbium at a high of 7.5%, 64% and 5% of TREO distribution respectively were found.

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