Large Rare Earth Deposit Found (MCP, REE, AVL)

The rare earth names are falling on news that a large rare earth deposit has been found in east China's Zhejiang Province.Geologists have discovered a deposit that has more than 70 tons of scandium, the local geological department said today.Scandium, along with 16 other rare earth metals are used to manufacture electronics and other high-tech products.In the deposit, geologists also found 800 tons of silver, 130,000 tons of lead and znc, and 3,000 tons of cadmium. Substantial quantities of stannum, gallium and rhenium were also found in the deposit."It is also the first time that such a variety of precious metals, non-ferrous metals and rare metals have been found in a single deposit in Zhejiang," said Yang Xiaochun, chief engineer with Zhejiang No. 1 Geological Prospecting Team. Shares of Molycorp (NYSE: MCP), Avalon Bay (NYSE: AVL) and Rare Earth Resources (NYSE: REE) are all lower on the announcement.