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Ram Resources encouraged by rare earths elements potential from results at Motzfeldt

Ram Resources (ASX: RMR) has received promising preliminary results from reconnaissance exploration work at its Merino and Romney targets within its 51% owned Motzfeldt multi element Project in South Greenland.

The company has also provided an exploration update with 820 metres of diamond drilling now been completed at the Aries prospect.

A total of and 76 rock chip samples have been acquired over the Merino and Romney exploration targets with grades of potentially economic interest for niobium (Nb2O5), tantalum and rare earth elements (REEs) confirmed across both targets.

Good grades have been seen over a strike of 1 kilometre at Merino, where a total of 15 samples had grades of >1,000 parts per million (ppm) Nb2O5.

The best sample in altered syenite on Merino grades 5,214 ppm Nb2O5, 332 ppm Ta2O5, 3.8% ZrO2 and 1.178% REO+Y2O3 (Rare Earth Oxide grade is total for La2O3, Ce2O3, Pr2O3, Nd2O3).

The company would be encouraged that attractive grades can still be found in rocks away from the main Aries Prospect. Importantly, the grades are found in lithologies that are less altered than those at Aries.

This suggests that mineralisation can be found away from the major hydrothermal event that appears to have enriched mineralisation at Aries, thus increasing the prospectivity of the Motzfeldt Centre as a whole.

Limited sampling at the Rams Head target failed to return encouraging results and this target has now been assigned a lower priority.

The samples were prepared and analysed in the field using a portable XRF.

The company said regional exploration work on new exploration licence 2011/24 is 90% complete with over 600 samples collected. These results are currently being reviewed and will be announced when this process is completed.

Drilling Update

Drilling commenced at the Aries Prospect on 27 July 2011 and about 820 metres has been drilled so far.

Drilling progress has been slower than desired due mainly to issues with the water supply to the diamond drill rigs. The company said few shifts have also been lost due to poor weather conditions.

Additional equipment has been deployed, which has resolved the drilling water issue, and this has lead to an improvement in drilling rates.

The geological team has reinterpreted and confirmed the locations of 9 diamond drill holes completed in 2001 by previous owner Angus & Ross Plc, with the assistance of Dr Ashlyn-Armour-Brown.

The locations of these historical holes had not been marked on site and had to be calculated from a local grid.
The result is that the historical holes are located slightly further south and east than previously thought.

The original 16-hole drill plan has been amended to account for the corrected historical drilling, eliminating the need for two holes.

The company now expects to complete about 10 drill holes by the second week of September 2011.