Media coverage relating to the recent Prospectors & Developers Association of Canada, where a detailed presentation on rare earths was given. The article mentions the standout presentation was on Greenland Minerals and Energy’s Kvanefjeld project. Movers and shakers of rare earths meet in Toronto, PDAC 2010.

ARE earths were apparently the hot topic at the recent (PDAC) Prospectors & Developers Association of Canada shindig in Toronto, where 21,600 resources types schmoozed one another.

One of the highlights, according to our reliable informant, was a presentation by geologists David Lentz of the University of New Brunswick and Boston-based Anthony Mariano. (Incidentally, Mariano will be in Australia next week, his first visit since 1983, giving several investor briefings on rare earths. We expect brokers and high-net-worth types to be very interested in what he has to say.)

The presentation was highly technical, but it seems to us that the bottom line was that considerable caution needs to be applied to assessing rare earths projects. As Lentz and Mariano point out, even the rarest of rare earth elements are more than 200 times more abundant than gold, they occur mostly as impurities in rock minerals and only a few of such deposits are worth a cracker.

They also made another good point: that projects are more attractive if they contain the heavy rare earths.

You can see this from the prices fetched. These minerals are not openly traded, but the most recent Chinese figures show the difference. Among the "heavy" rare earths, europium (which gives you red on your TV or computer screen) was bringing over $US475/kg; terbium (used in magnets) was worth at least $US340/kg; and dysprosium (magnets and lasers) could bring upwards of $US107/kg.

By contrast, the "light" rare earths are in a different price bracket. Lanthanum (used in re-chargeable batteries) brought under $US6/kg, cerium (used in glass) under $US4/kg, with neodymium (magnets, lasers, glass) fetching around $US14/kg.

A most interesting slide in the presentation shows the proportion of heavy rare earths in various of the world's leading deposits outside China. With Mt Weld, owned by Lynas Corp (LYC), it's 3 per cent; at Nolans Bore in the Northern Territory, held by Arafura Resources (ARU), the heavy elements comprise 4 per cent. While smaller than these, in the Dubbo zirconia deposit held by Alkane Resources (ALK) the heavy elements make up 60 per cent of the rare earths.

However, the standout is Kvanefjeld in Greenland, owned by Greenland Minerals & Energy (GGG). The authors of the presentation describe this project as "both large and relatively enriched in high-demand heavy rare earths".

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