Texas Rare Earth Resources Corp. (TRER) is currently evaluating the economic potential of the Round Top project, with the Preliminary Economic Assessment (PEA) expected by mid-2012. TRER completed a number of geological and metallurgical studies in 2011, including an exploration drilling program initiated in July. The exploration program objectives were to define the contact between the intrusion and sedimentary rocks, determine the lateral extent and thickness of the rhyolite intrusion, and obtain samples for assay and metallurgical testing. The drilling results are providing confirmation of historical drill and assay information and provide the basis for the Round Top geological model.
Drilling Program As of April 2012, a total of 73 reverse circulation holes have been drilled with a total depth of over 32,000 feet. The drilling program is continuing with one reverse circulation drill rig on the mountain and an additional 90 holes are scheduled to be drilled through the feasibility study. A core drilling program commenced in March 2012.
Aeromagnetic Survey In May 2011, an airborne magnetic survey was flown over the project area. This survey was conducted to identify future drill targets, assist with the present drilling program, and determine the location of the feeder neck for the Round Top intrusion.
Stream Sediment Study A stream sediment study was completed during the summer 2011. The stream sediment study was used to identify future drill targets for beryllium and uranium mineralization on Round Top, Little Round Top and Little Blanca. Future drill targets were identified on Little Blanca.
Milestones In November 2011, TRER engaged Gustavson Associates to prepare a Preliminary Economic Assessment (PEA) which is scheduled to be completed by mid-2012. The PEA ex expected to move TRER forward in the definition of the resource* and de-risking of the Round Top project. Following the completion of the PEA and subject to obtaining necessary financing, TRER expects the Pre-Feasibility Study (PFS) to be completed in the spring of 2013. It is expected that the PFS will further refine elements of project engineering including engineering studies, pilot tests, and mine/plant design. Also subject to obtaining necessary financing, a full Feasibility Study is expected in late summer 2014, which will solidify project economics and establish a single option for bringing the Round Top project into production.
*See Cautionary Notes to Investors.