Rare Element Resources Surging over 20% after Report of Significant Rare Earth Find at Bear Lodge

Shares of Rare Element Resources

are seeing much strength on Wednesday after the company announced a significant rare earth find at its Bear Lodge. Rare Elements reported a 38% increase of M&I rare-earth mineral resources in Bull Hill area of Bear Lodge. The updated resource estimate of the Bull Hill deposit consists of 6.8 million tons (6.2 mm metric tonnes) averaging 3.75% REO in Measured and Indicated categories, increased from 4.9 million tons (4.4 mm metric tonnes) averaging 3.77% REO last year, both using a 1.5% REO cutoff grade. The company also announced announced significant potential for further expansion of all deposits. Commenting on the positive results, Dr. Don Ranta, Chairman of Rare Element Resources said, "The Bear Lodge project continues to advance rapidly. The current upgraded Bull Hill resource will be used in the Prefeasibility Study, scheduled for completion in Q1 2012. The Company's 2011 exploration program completed a record number of drill holes, although the results of less than half of the holes have been received and logged. These interim updated results have expanded and upgraded the known resources, and discovered targets with substantial potential for defining additional rare-earth resources with significant middle and heavy REE-enrichment." Currently, shares of Rare Elements are up 22% at $4.35, bucking the overall trend as the S&P 500 is trading 0.1% lower.