Email of the day (2)
Comment of the Day

August 10 2011

Commentary by David Fuller

Email of the day (2)

More on rare earths:
"Apologies, but I think I might have sent you a broken link yesterday. This was the one in relation to the rare earth deposit in Nebraska. Here is a shortened version of the link."

David Fuller's view Thanks for the corrected link. This is an interesting story, not least as the region appears to be sufficiently remote and sparsely populated. Consequently, there should be little opposition to a responsibly managed mining project.
Here is the opening:

Elk Creek, Neb. (population 112), may not be so tiny much longer. Reports suggest that the southeastern Nebraska hamlet may be sitting on the world's largest untapped deposit of "rare earth" minerals, which have proved to be indispensable to a slew of high-tech and military applications such as laser pointers, stadium lighting, electric car batteries and sophisticated missile-guidance systems.

Canada-based Quantum Rare Earths Developments Corp. last week received preliminary results from test drilling in the area, showing "significant" proportions of "rare earth" minerals and niobium.

However, I would be suspicious of the "world's largest untapped deposit" comment because there has been little response by Quantum Rare Earth Developments' share price (weekly & daily) recently, unless the rally commencing in July of last year reflects early knowledge of this find.

The Company's finances suggest that a major capital raising effort would be required to develop the Elk Creek site. Nevertheless, this could be an interesting speculative story for some point in the next bull market. Currently, we are in a bear market of unknown duration and investors will have many attractive and less risky recovery candidates to consider as stock market downtrends progress.

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