History of Rare Earth Mineral Sands Inc. (REMSI)

The company, originally called Maritime Titanium Limited (MTL) was formed in 2010 to acquire mineral leases for the world-class deposit of mineral sands in the Shubenacadie River and Cobequid Bay of Nova Scotia. These deposits were discovered around 2000 and approximately $10 million was spent on identifying the quality and extent of the resource by Titanium Corporation of Canada (TCC) before that company moved to concentrate its operations in the Alberta tar sands. In 2001, as part of the 43-101 process with the national stock exchanges, consultants estimated the net present value of the subject titanium mineral sands (in the river only) to be $109 million. MTL updated those numbers in 2010 to recent prices/costs and determined the net present value after taxes to be $216 million.

43-101 Highlights

The Montreal Stock Exchange approved TCCs national 43-101 report in 2001.

National Instrument 43-101 approval is based on proof the deposit:

"For an industrial mineral deposit to be classified as a mineral reserve, the qualified person preparing the estimate should be satisfied, following a thorough review of specific and identifiable markets for the product that there is at the date of the technical report, a viable market for the product and that the product can be mined and sold at a profit."

The 43-101 for the MTL sands project was completed by Brian W. Stratford & Associates of Orange Park, Florida, one of the world's leading titanium exploration and production experts, and Joel Warner, formerly of DuPont Chemicals, one of the world's largest consumers of titanium.

Since the date of the report the values of mineral sands content have more than doubled and MTL has extended the claims involved to include Cobequid Bay as well as the river.

The report, dated April 27, 2001, had a number of observations about the project:

  1. "Based upon our industry experience we are convinced that there is a viable market for the concentrate...we are comfortable that a viable market exists for the concentrate at the grades achieved by the Company."
  2. "We wish to emphasize that the most significant potential consumers of the Nova Scotia titanium concentrate, or any other material like it for that matter, are located on the Eastern Seaboard of the United States. Therefore, the Company has, in our view, a considerable advantage over the majority of the overseas competitors based solely on its proximity to those consumer markets since transportation costs form a significant part of overall project economics."
  3. "I have spent a considerable amount of time as a Senior Mineral Process Engineer consulting on various issues relating to the production of materials from mineral sands deposits....we concluded that the deposit can be mined and product sold at a profit, which conclusions are reflected in the discounted cash flows reported in the Valuation Report."
  4. Applying a 7% discount rate for the time value of money and a 40% risk discount for the early stage of development yields a projected net present value of $109.08 million. (The MTL business plan, which updates the value to current mineral pricing pricing but holds the other factors, concluded a net present value of earnings after tax of $216 million.) This value does not account for revenues from mineral resource recoveries from Cobequid Bay or REEs.

In October, 2010 MTL was informed that tests had shown the MTL mineral sands contained significant quantities of Rare Earth Elements (REE). Following the discovery MTL extended it claims in Cobequid Bay and undertook extensive testing across the expanse of claims. These tests showed consistent presence of monazite sands containing cerium, lanthanum and neodynium, three of the most sought after light rare earths used in the production of cars, light bulbs, windmills and thousands of other critical devices of the modern world.

In the late summer of 2011 these showings convinced MTL to change its name to Rare Earth Mineral Sands Inc. (REMSI). In fall, 2011 the company undertook a more extensive drilling program across the claims. The drilling resulted in core samples to 20 foot depth. Results are expected in January 2012. Concurrently REMSI has sent sands for analysis in Australia and the USA.

Plan for 2012

In 2012 REMSI hopes to complete detailed design of its dry plant and the environmental assessment clearing the way for production of titanium, zircon, garnets and monazite.