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1. THE MOTZFELDT PROJECT - OVERVIEW

Location
The Motzfeldt Project  comprises Exploration Licence 2010/46 and is located in the Gardar Province of Southern Greenland (see Figure 1).  The project takes its name from Motzfeldt Sø (lake), which lies at the foot of the project.

The Motzfeldt Centre lies in a mountainous area, some 18 km in a straight line from the nearest fjord.  To the north and east, mountainous and glaciated terrain continues until the Greenland Icesheet is reached.  To the west and south, the Centre is bounded by high and rugged cliffs which form the shores of a large land-locked and glacially fed lake (Motzfeldt Sø), the southern end of which discharges into the valley of Qôrqup kûa which then runs westwards to the Qôroq fjord.

The mountain plateaus, which include the exploration targets, are at altitude, with elevations of around 1,300-1,500 m above sea level.

Picture : Site visit  2010 - Aries zone on top of Motzfeldt Plateau

Motzfeldt Lake and Project area on the top of the plateau to the left

The nearest major town to the Motzfeldt Project is Narsarsuaq, which lies approximately 24 km to the west of Motzfeldt.  Narsarsuaq is a regional centre in Southern Greenland and is serviced by an international airport and harbor.  This part of Greenland is relatively well populated and regional services are well established.

Another explorer, Greenland Minerals and Energy Limited (ASX:GGG) has announced a resource of 4.79 million tonnes of Rare Earth Oxide in a  457 million tonne orebody at their Kvanefjeld Project, located some 60km to the south east of Motzfeldt.  The Kvanefjeld ore resource also includes uranium, zinc and sodium fluoride.  The deposit is said to be the largest rare earth resource in the world.

Figure 1: Motzfeldt Project Location

Tenements

The Motzfeldt Project is contained within Greenlandic Exploration Licence 2010/46 which comprises 3 adjacent areas totaling some 84 km2 and which is shown in blue on Figure 2.  Most of the detailed exploration work to date, which includes Anomalies 4 and 5, has been carried out in the central area of this licence.

Ram has also applied for Exploration Licence 2010/009 (shown in pink on Figure 2) covering an area of approximately 970 km2 and which surrounds the existing Exploration Licence 2010/46.  This licence has yet to be granted by the Government of Greenland.

Figure 2 : Motzfeldt Project Licences

2. TA-NB-REE PROJECT - OVERVIEW

A. About Tantalum
Pure tantalum is a soft, ductile, grey-blue metal, characterized by high melting and boiling points and an exceptional resistance to chemical attack below 150°C.  It is practically inert to many oxidising and reducing acids, with the exception of sulphuric acid.

Tantalum usually occurs in combination with oxygen and one or more other metals, the oxides forming tantalates.

Uses of Tantalum
The principal user of  Tantalum  is the electronics industry, which uses tantalum in the manufacture of capacitors and, to a lesser extent, sputtering targets. Combined, these two end uses accounted for about 60% of total tantalum consumption in 2008.

Other applications, such as super alloys and cemented carbides, consume significant amounts of tantalum, but it is the electronics industry that has driven the long-term growth in consumption.

The U.S.A. is the world’s largest consumer of tantalum and accounted for around a third of total demand in 2008.   That will probably change in the future as capacitor manufacture is transferred from locations such as the U.S.A. and Japan to China.  However, the USA will remain the major producer of super alloys containing tantalum.

Supply and Demand
Around 70% of the tantalum market is supplied by primary production from tantalum-bearing minerals such as peralkaline granites, syenites, metasomatites and nepheline syenites, which are the primary host Ta minerals that occur at Motzfeldt.

In general, the Ta2O5 content in ore can range from as little as 100 ppm. to as much as 1000 ppm..  Currently, most of the pyrochlore ore mined has an average grade in the 100 ppm. to 500 ppm. range which is similar to the grades at Motzfeldt.

The remainder of the world tantalum supply is sourced from tin slags and reprocessed scrap material.  Most tantalum scrap, which makes up about 20% of supply, is generated during the manufacture of capacitors.

Global economic recession has driven down demand in the electronics and aerospace markets, which makes up about three quarters of tantalum consumption.

Depressed prices in 2008 resulted in the suspension of a number of mines, including the world’s biggest producer, Talison’s Wodgina mine in Western Australia.  Noventa and Tanco suspended operations a few months later and global primary tantalum supply was cut by almost 50%.

Existing inventories (including the US Strategic Reserve of Ta), have been drawn down over the past 12 to 18 months and will continue to do so with primary production falling below consumption.  Metals industry research group, Roskill considers that “there is a risk, and a very real risk, of a tantalum supply shortfall, if the conventional primary tantalum supply chain is not re-established.”

Roskill also suggest that “although demand for tantalum will return to what has for some years been a strong growth trend, it will probably take until 2012 for that to happen”.

Pricing and Outlook
Tantalum prices are current in the range of  US$40-$45/lb Ta ₂ O ₅ .  In terms of future tantalum pricing, Roskill’s view is as follows; “Roskill considers that when the tantalum market returns to long-term trends, in terms of demand and primary supply, and contract prices are once again the norm, those contract prices will be at least US$60/lb Ta2O5 and may well reach close to US$70/lb. That level of pricing, Roskill believes, is needed to sustain a conventional primary tantalum industry.”

B. About Niobium
Niobium and tantalum have a strong geochemical coherence and usually occur together in nature.  Besides tantalum, niobium is most commonly associated with thorium, titanium and lanthanides (REE).  Niobium (Nb) is soft and ductile and characterized by high melting and boiling points.

Most niobium is obtained from deposits of pyrochlore (the host mineral at Motzfeldt), which can be directly converted to ferro-niobium (FeNb) or used to produce niobium pentoxide (Nb ₂ O ₅ ), the starting point for the manufacture of most other niobium end products.

Uses of Niobium
Niobium is used mainly as an alloying addition to steel in the form of ferro-niobium (FeNb), where it brings high temperature strength and corrosion resistance to gas pipelines, automobile components and structural steel.  Outside the steel industry, the largest use for niobium is as vacuum-grade ferro-niobium and nickel-niobium in the production of super alloys for aircraft engines, land-based power generation and other applications.  Super alloys account for 6% -7% of niobium consumption.

Supply and Demand
There are currently only three significant producers of niobium from pyrochlore in the world, namely Companhia Brasileira de Metalurgia e Mineração (CBMM) and Anglo American, in Brazil, and Niobec, in Canada.  These three companies account for approximately 85% of the world’s production of niobium, with CBMM very much the largest producer.  End users of niobium include major specialty alloy producers such as Cabot, HC Starck and Treibacher AG.

Consumption of niobium has grown strongly over the past decade as shown in the graph below.  This growth in demand has come about as a result of both increasing global production of steel and the rising use of high quality steels that contain niobium.  At present, niobium is contained in about 10% of the steel produced worldwide; there is good potential for that share to increase to as much as 20% in future.

High Strength Low Alloy (“HSLA”) steels are the main market for niobium, although such steels form only a small part of the overall steel sector; currently about 10% of total output but likely to grow significantly.  Even during the reduced demand for steel during 2008-2009, the demand for natural gas linepipe, the main application for HSLA steel, is healthy and is expected to remain so.

Pricing and Outlook
Niobium prices, particularly those for ferro-niobium,  historically were very stable.  From 1990 -2006, the average export price of Brazilian ferro-niobium remained within the range of US$12-14/kg contained Nb.  That changed in 2007 and into 2008 when spot prices increased in response to demand and increased capacity (particularly at CBMM) to above US$40/kg.  At July 201 spot prices are of ferro niobium (Nb ₂ 0 ₅ ) at US$44-45/kg contained Nb.

C. What Are Rare Earth Elements?
Rare Earth Elements (REEs) are a group of specialty metals with unique physical, chemical and light-emitting properties that are seeing dramatic increases in demand, owing to their technological applications.

REE’s  consist of 15elements.  In most cases and usage patterns in the modern economy, these 15 elements are oxides (often shown as Total Rare Earth Oxides or TREO).  The names of the elements are Cerium, Dysprosium, Erbium, Europium, Gadolinium, Holmium, Lanthanum, Lutetium, Neodymium, Praseodymium, Samarium, Terbium, Thulium, Ytterbium, and Yttrium.

Uses of Rare Earth Elements
REE’s are essential components to products with significant growth potential in the markets associated with the electronics and technology industries, energy efficiency and greenhouse gas reduction.  As a key component in re-chargeable batteries and the magnets in electric motors, rare earths will play a fundamental role in hybrid motor vehicles such as the Toyota Prius.

REE’s are critical and strategic components in many high-technology developments.  REE’s are also key products in the electronics market, including mobile phones, laptop computers, plasma and LCD display screens.

The diverse nuclear, chemical, metallurgical, catalytic, electrical, magnetic and optical properties of the REE’s have led to an ever increasing variety of applications and demands (see chart below).

Supply and Demand
China supplies approximately 92% of the world’s supply of Rare Earth Oxides (“REO”).  China and has recently recognized that its REO sources of supply are finite and owing to the importance of REE availability to internal industries, China is prioritizing its domestic markets through steadily increasing export taxes on REE’s in conjunction with reducing export quotas.

A number of countries including the U.S.A., Japan and South Korea have expressed their concerns over the concentration of REO supply currently with China.

The following is an expert from a report in TechNewsDaily on 14 April 2010 regarding U.S. concerns over dependency on REO imports from China.

“U.S. military technologies such as guided bombs and night vision rely heavily upon rare earth elements supplied by China, and rebuilding an independent U.S. supply chain to wean the country off that foreign dependency could take up to 15 years, according to a new report by the U.S. Government Accountability Office (GAO).

Military officials did stress how rare earth elements form a currently irreplaceable part of devices such as lasers, radar, missile-guidance systems, satellites and aircraft electronics. And many military systems also rely upon commercial computer hard drives that use rare earth magnets.

Even more specific examples of rare earth-driven technologies include the navigation system for the M1A2 Abrams battle tank, and a new hybrid electric drive in the works for the Navy's DDG-51 destroyers.

Rare earth elements might eventually become part of the U.S. National Defense Stockpile, according to the GAO report.”

Mine production has remained relatively static over the past 5 years at around 120,000 tonnes of REO, whilst demand has increased at between 8%-13% p.a. after the technology bubble of 2001-2.  In 2008, demand for REO was estimated to be 132,500 tonnes, valued at US$1.75 billion.

Forecast demand in 2012 for TREO is 190,000 tonnes with europium, terbium, dysprosium and yttrium expected to be in short supply.  Future TREO demand is forecast to increase between 8%-11% through to 2014 with the big consumers being China, Japan and the U.S.A.. (Source: IMCOA)

Prices for rare earth carbonates are determined by the concentrations of the individual rare earth minerals in the concentrate. REO’s are not LME traded commodities and as such a terminal market is not present.  Prices are dictated by the usual factors of supply and demand with IMCOA forecasting prices of US$7.50 to US$10/kg over the period to 2014.

3. WESTERN AUSTRALIAN PROJECTS - OVERVIEW

Ram Resources Limited is an Australian company with exploration prospects located in the Pilbara region of Western Australia which are prospective for base metals, uranium, and gold. Each of these project areas has had previous exploration work carried out and they are located in a region of Western Australia that includes major mineral finds such as the Telfer Gold Mine, Nifty Copper Mine, and the Kintyre Uranium Project. Whilst they are early stage projects, the Company believes they are highly prospective and the previous work provides encouraging results for further programmes.

Telfer Projects (Gold)
The Company holds two Exploration licences, Fallows Field and the Dome Triangle which are located near to Newcrest Limited’s Telfer Gold Mine. Telfer is a major underground and open pit gold mining operation which is reported to contain resources of 19.5 million ounces Au and 0.7 million tonnes Cu.

Parry Range (Base Metals)
In October 2008 Ram sold its Parry Range project to Shaw River Resources Limited. Parry Range is a group of 7 tenements located in the Ashburton region of Western Australia which are prospective for base metals. Ram retains a 15% interest in the Parry Range project which is free carried through to feasibility.