Tuesday, July 5, 2011

Restoring Sanity In Rare Earths

How do we respond to jubilant reporting coming out of Reuters detailing the massive discovery of rare earth elements in international waters?  By focusing on facts and ignoring anything else that has been deployed in an attempt to cloud our objectivity and skew our focus.

Reuters Article:
http://www.reuters.com/article/2011/07/04/us-rareearth-japan-idUSTRE76300320110704

This article has unfortunately dealt a swift blow to the already battered market values of even the most promising rare earth juniors.  This piece references sea mud rich in rare earths.  Heavy rare earths, which are in the shortest supply, can be extracted from monazite sands.  These sand deposits have historically been found in China, Brazil and India.  Pick #9 in our copyrighted Rare Earth report is currently attempting to acquire a South American monazite deposit.  This type of operation can produce marketable material much faster than traditional mining.  It is also worth mentioning that the deposit this company is working on acquiring is not located under 20,000 feet of sea water like the one described in the article.

We would also like to take a look at the geological makeup of the deposit referenced by Reuters.  It must be significant if it is wiping out tens of millions of dollars worth of market capitalization from development stage mining firms.  Pick #5 in our report, our favorite child, has a very attractive deposit characterized by over 50% heavy material along with low infrastructure costs.  The deposit buried at the bottom of the ocean however contains only 0.22% rare earths per ton of sand at most and up to 15% of that meager amount is considered heavy material.

Technology Metals Research has a decent piece out in response to the Reuters story.

http://www.techmetalsresearch.com/2011/07/is-someone-manipulating-the-story-about-rare-earths-under-the-pacific-ocean/

As a reader of this site we have equipped you with the tools needed to properly read the news.  (Click here for article on how to read the news) Focusing on objectively taking in all facts then using your experiences and knowledge of basic economics will help you avoid emotionally charged attacks designed to separate you from your capital.

For information on how to purchase our Rare Earth Elements report please email ksircapital@gmail.com