In October 2009, Playfair Mining Ltd. announced the 100% acquisition by staking of four large claim blocks in central Labrador coving highly prospective areas which are enriched in both rare metals and rare earth elements (REE). Later in February of this year, Playfair announced it had entered into an option agreement with Rare Earth Metals (TSX.V - RA) on the property's six large claim REE blocks. Terms of the agreement allow RA to earn a 51% interest by making an initial payment of $15,000 and 20,000 shares and guaranteeing a minimum first year expenditures of $100,000. Thereafter, Rare Earth Metals will make further annual contract anniversary payments of cash and shares totalling $55,000 and 130,000 shares and also incur additional exploration expenditures totalling $400,000 over three years. The parties will then form a joint venture to further explore and develop mineral resources on the property. REM will operate the exploration programs during the option period in consultation with Playfair.
The historic Letitia Lake - Red Wine exploration camp hosts numerous showings containing rare metals (beryllium, zirconium, yttrium and niobium) and rare earth elements (REE). This camp has many regional-scale lithological and geochemical similarities to the Strange Lake REE-Zr-Y-Nb-Beryllium exploration camp, located 260 kilometres to the northwest. Like Strange Lake the Red Wine area is underlain by middle mesoproterozoic peralkaline rocks which are enriched in rare earth elements and other uncommon metals. The estimated centre of the Red Wine REE camp is only 10 kilometres southwest of the western extent of Playfair's Seal Lake Copper-Silver exploration property.
On August 10, 2010, Playfair announce early exploration results completed by Rare Earth Metals. RA has completed preliminary sampling of the 2010 airborne geophysical anomalies on the Playfair South claim block. The Playfair South Block is located in the southwest portion of the historical Letitia Lake -- Red Wine REE exploration camp; encompassing 15 airborne geophysical anomaly clusters that have strike extents ranging from 200 meters to 1000 meters. Prospecting and geological mapping have resulted in 3 previously unreported mineralized showings on the PLY-S-02, PLY-S-05 and PLY-S-10 radiometric anomalies. The rare earth metal mineralization is hosted by predominantly peralkaline intrusive rocks and is generally characterized by an abundance of Eudialyte mineralization and is dominated by heavy rare earth oxides and Zirconium (ZrO2). Geochemical analyses of prospect samples from three of the new discoveries follow:
PLY-S-02 - (800 metre long radiometric anomaly) Prospect samples ranged from 0.11% to 1.38% TREO and 0.02% to 3.01% ZrO2. The TREO (total rare earth oxides) values ranged from 37% to 43% HREO (heavy rare earth oxides).
PLY-S-05 - (1000 metre long radiometric anomaly) Results here include the discovery of a 5 to 13 meter wide actinolite chlorite schist zone exposed for a strike length of 110 meters. Traces of eudialyte have been reported and geochemical analysis of prospect samples returned values that ranged from 0.51% to 2.41% TREO and 0.09% to 0.48% ZrO2. The TREO values ranged from 5 % to 20 % HREO.
PLY-S-10 (CD Zone) - Located 2 kilometres southwest of the PLY-S-05 anomaly, this mineralization is described as a minimum 3 meter wide pegmatitic gossan zone with rare metal values ranging from 0.19% to 5.37% TREO and 0.05% to 2.56% ZrO2. The TREO values ranged from 26% to 85% HREO.
These zones are scheduled for channel sampling. Additionally, a number of other disseminated eudialyte zones have been located, however, analyses from prospect samples collected from these areas are pending.
The REE project claim blocks envelop a combination of both lake sediment and till geochemical samples which are anomalous in a range of rare metals (Zr, Be, Nb, Y, Hf) and rare earth elements (La, Ce, Sm, Eu, Dy, Th & U). These lake sediment and till samples were collected by the government of Newfoundland and Labrador on rough 4km and 2km centres, respectively. The geochemical anomalies are considered to be locally derived as indicated by government glacial history studies and the bedrock sources are yet to be uncovered. The claims cover no historical prospects.
Together the six claim blocks total 313 claims, cover a combined total surface area of 7,825 hectares (19,335 acres) and are located about 250 kilometres south of Voisey's Bay or 160 km northwest of Goose Bay. The Churchill Falls highway #500 is favourably located about 100 kilometres to the south of the project area.
During the 1950's and 1960's, the Letitia Lake -- Red Wine River region was the focus of both rare metal and rare earth element (REE) exploration. These explorations led to the discovery of several beryllium, zirconium, niobium and REE element showings; the most notable are the Mann # 1 & 2, Michelin #1, Two Tom Lake and North Red Wine No. 1 to 4. The Mann # 1 is perhaps the most significant of these prospects; where historic documents report rock sampling (surface and drilling) show average results of 0.35-0.40% BeO & 0.24% Nb2O5. Rock samples collected from the Two Tom Lake showing are anomalous in Be and Nb and highly enriched in REE; reportedly averaging about 2% REE. In 1969, surface bulk rock samples were collected from the North Red Wine property, analyses of these samples showed that the mineralized zones are highly anomalous in ZrO2 (about 13%), yttrium (1.8%) and REE (2.5%).