RED LAKE, Ontario, Nov. 13, 2007 (PRIME NEWSWIRE) -- King's Bay Gold Corp. (TSX-V:KBG) and Mainstream Minerals Corp. (TSX-V:MJO) are pleased to announce that they have received the final results of Hole #14 from their Phase 1 diamond drilling program on their Bobjo Mine Project, located in Earngey Township, Red Lake, Ontario.
The partners are pleased to report that Hole #14 was very successful in intersecting a new high-grade gold zone at very shallow depths and a new Rare Metals and Rare Earth Elements discovery at a depth of 153 metres situated along a fault structure with an approximate ten-kilometre strike length.
Highlights of Hole #14
8 ft intersection with a grade of 1.56 opt gold (53.61 g/t Au over 2.45 metres) as reported in a news release dated October 23rd, 2007.
New 40 ft intersection with a grade of 13.54 g/t Gallium (Ga), 21.50 g/t Scandium (Sc), 12.98 g/t Rubidium (Rb), 20.27 g/t Cerium (Ce), 8.25 g/t Lanthanum (La), 12.03 g/t Yttrium (Y), 1.83 g/t Ytterbium (Yb), 3.23 g/t Selenium (Se), 6.76 g/t Lithium (Li), 3.58 g/t Cadmium (Cd), 4.28 g/t Niobium (Nb), 2.25 g/t Hafnium (Hf), 38.57 g/t Cobalt (Co), 79.29 g/t Vanadium (V), 83.61 g/t Strontium (Sr), and 96.53 g/t Zirconium (Zr).
Rare Metals and Rare Earth Elements
Demand for rare metals and rare earth elements is soaring because of consumer demand for more fuel-efficient cars, alternative energy technologies such as fuel cells, the nuclear power industry for both practical and experimental utilization, rechargeable batteries, lasers, hydrogen storage, superalloys as used in the aerospace industry, televisions, computer screens, permanent magnets as used in electric-hybrid vehicles and in the conductor industry for many of the new "Green" technologies, etc. Currently, 97% of the world supply of the Rare Earth Materials (REM) comes from China. China recently announced a reduction in the exports of REMs coming out of their mines. This decision will considerably reduce the supply for buyers outside of China while world demand is in full growth.
The main consumers of rare earth materials are in Southeast Asia (Japan, Korea, Thailand, China) and in the USA. The United States used to be the largest consumer of rare earth materials, about 27% of the world's total. However, in recent years, China became the number one global consumer, exceeding the American consumption. The United States currently imports nearly 100% of their needs in REM, and the American market for rare earth materials is valued at more than 1 billion U.S. dollars per year. It will soon become critical to produce these resources outside of China.
It is reported that 77% of world production is currently coming from one mine in China. The United States used to produce approximately 6% of the world's supply from one of the only in-situ rare earth mines in the world, at Mountain Pass, California. However, Mountain Pass -- the only producing mine in North America -- ceased operations several years ago, creating a situation where there is no Rare Earth Elements production taking place in North America, or anywhere significant outside of China. Therefore, prices and demand are expected to continue to rise drastically.
All these metals have significant economic and strategic value and depending on purity and lot size, individual powders refined into metal may range in price from $15.00 U.S. per kilogram for lanthanum metal, to $30,000 U.S. per kilogram ($30.00 U.S. per gram) for scandium metal. Some of these metals like Rubidium, which is not actively traded, have sold for as much as $58.20 U.S. per gram. The data herein was collected from the United States Geological Survey (USGS) minerals information site.
Bobjo Mine Project
The Bobjo Mine project is located between the former South Bay Zinc / Copper Mine and Uchi Lake Gold Mine. It is noted that an existing power line passes through the southern part of the property and that it is within trucking distance to the Placer Dome / Goldcorp Mill in Red Lake, Ontario. The area has a history of gold and base metal production dating back 80 years and the work presently being carried out by the partners represents the commencement of the first modern, systematic exploration of the property.
The joint venture is 50 % Kings Bay Gold (TSX-V:KBG) and 50 % Mainstream Minerals (TSX-V:MJO) with Mainstream Minerals being the Operator of the project. John Archibald, A.P.G.O. - Geologist is the Qualified Person under National Instrument 43-101. All of the samples herein, and all future samples, were analyzed by SGS Canada Inc.'s laboratory in Red Lake, Ontario.
King's Bay Gold and Mainstream Minerals are pleased with the first 14 holes from this Bobjo Mine project so far and especially with the new rare metals and rare earth element discovery which has just brought a new dimension to this exploration project. The partners did not assay for all the rare earth elements and plan to assay for more of them in future holes. Assay results of Holes #15 through to #20 should be received very shortly and will be announced immediately upon receipt.
"KBG" Shares Issued & Outstanding: 35,266,273 Approximate cash on hand: $1.3 million
About King's Bay Gold
King's Bay Gold is unique in the industry in that it owns most of the equipment required to carry out the various phases of exploration. This includes diamond drills, bulldozers and other exploration equipment giving the company the ability to quickly adjust its work programs as exploration results are realized and company strategies change. The Corporation is a very active and well financed Canadian mineral exploration company with mineral projects strategically located in Canada's gold camps. These properties include -- (i) a property located directly adjacent to Canada's richest gold mine, (ii) two past producing gold mines, and (iii) other locations that are in very close proximity to either past producers and / or recent discoveries.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe KBG's future plans, objectives or goals, including words to the effect that KBG's management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.