Exploration Update - Gallinas Mountains REE Project

    




 TSX.V: STI 

 REGINA, July 16, 2012 /CNW/ - Strategic Resources Inc. ("Strategic") is pleased to provide the following exploration update on its Rare Earth  project situated in Lincoln County, New Mexico: 

 The recently completed drilling program in the Gallinas Mountains was  designed to assess the potential of one of several explosive volcanic  brecciated zones identified by R. Schreiner (US Bureau of Mines - 1993  Report. See www.rareearthreports.ca to read this report). 

 These explosive breccia targets represent a change in focus from the  vein type occurrences that were examined as part of the previous  drilling program. 

 In total, four holes were drilled. During drilling, recovered core was  strongly brecciated and altered. The brecciation is thought to have  been formed by the massive release of gaseous material during the  volcanic intrusive event that created the Gallinas Mountains some 30 Ma  ago. Post-magmatic REE carbonate/fluorite bearing solutions then  altered the brecciated rock over geologic time.  A summary of each hole  follows: 

 Hole 1- drilled to 98.8 linear feet, Vertical Orientation. 




     ____________________________________________
    |From  |To    |Thickness|TREO|(HREO/TREO)|Sr |
    |(feet)|(feet)|(feet)   |ppm |           |ppm|
    |______|______|_________|____|___________|___|
    |26.5  |98.8  |72.3     |2750|9.8%       |691|
    |______|______|_________|____|___________|___|
    |      |      |         |    |           |   |
    |______|______|_________|____|___________|___|
    |      |      |including|    |           |   |
    |______|______|_________|____|___________|___|
    |39.68 |54.18 |14.5     |9267|4.5%       |743|
    |______|______|_________|____|___________|___|
    |      |      |and      |    |           |   |
    |______|______|_________|____|___________|___|
    |54.18 |72.88 |18.7     |1680|15%        |423|
    |______|______|_________|____|___________|___|
    |      |      |         |    |           |   |
    |______|______|_________|____|___________|___|





 Hole 2- drilled to 85.5 linear feet, for a true thickness 61.8 feet, 

 Azimuth N40W, 35 degrees from vertical 




     ___________________________________________
    |From   |To    |True     |TREO|HREO/TREO|Sr |
    |(feet) |(feet)|thickness|ppm |         |ppm|
    |       |      |(feet)   |    |         |   |
    |_______|______|_________|____|_________|___|
    |surface|85.5  |61.8     |1801|16%      |488|
    |_______|______|_________|____|_________|___|
    |       |      |         |    |         |   |
    |_______|______|_________|____|_________|___|
    |       |      |including|    |         |   |
    |_______|______|_________|____|_________|___|
    |36.00  |49.85 |13.85    |4402|12%      |548|
    |_______|______|_________|____|_________|___|
    |       |      |         |    |         |   |
    |_______|______|_________|____|_________|___|
    |       |      |         |    |         |   |
    |_______|______|_________|____|_________|___|





 Hole 3-drilled to 185.5 linear feet, for a true thickness of 133.3 feet, 

 Azimuth N90W, 35 degrees from vertical 




     __________________________________________
    |From  |To    |True     |TREO|HREO/TREO|Sr |
    |(feet)|(feet)|thickness|ppm |         |ppm|
    |      |      |(feet)   |    |         |   |
    |______|______|_________|____|_________|___|
    |10    |185.5 |133.3    |1632|19%      |476|
    |______|______|_________|____|_________|___|
    |      |      |         |    |         |   |
    |______|______|_________|____|_________|___|
    |      |      |including|    |         |   |
    |______|______|_________|____|_________|___|
    |25.80 |36.40 |10.6     |8026|5%       |596|
    |______|______|_________|____|_________|___|
    |      |      |and      |    |         |   |
    |______|______|_________|____|_________|___|
    |115.0 |121.2 |6.2      |3367|10%      |753|
    |______|______|_________|____|_________|___|
    |      |      |         |    |         |   |
    |______|______|_________|____|_________|___|





 Hole 4-drilled to 95 linear feet. Vertical Orientation 




     ___________________________________________
    |From  |To    |Thickness|TREO|HREO/TREO|Sr  |
    |(feet)|(feet)|(feet)   |ppm |         |ppm |
    |______|______|_________|____|_________|____|
    |10    |95.0  |85.0     |1109|28%      |1300|
    |______|______|_________|____|_________|____|
    |      |      |         |    |         |    |
    |______|______|_________|____|_________|____|
    |      |      |including|    |         |    |
    |______|______|_________|____|_________|____|
    |40.25 |55.15 |14.90    |1675|19%      |572 |
    |______|______|_________|____|_________|____|
    |      |      |         |    |         |    |
    |______|______|_________|____|_________|____|
    |89.5  |91.5  |2.0      |1241|18%      |465 |
    |______|______|_________|____|_________|____|





 The above tables show Total Rare Earth Oxides (TREO). TREO are broken  down into Light Rare Earth Oxides (LREO) and Heavy Rare Earth Oxides  (HREO). The LREO consists of Ce2O3, La2O3, Nd2O3, Pr2O3. For the  purposes of this press release, the HREO is confined to the four most  commonly noted heavy rare earths in the assays namely, Dy2O3, Er2O3,  Yb2O3, and Y2O3. 

 Assays were completed at ALS Global Laboratories in Vancouver, BC using  Lithium-Borate fusion followed by aqua regia digestion and ICP  multi-element assay. Pulps were also submitted to Saskatchewan Research  Council where XRF analysis was used to more accurately determine the  heavy rare earth elements. 

 Key observations to be inferred from this drilling program include: 




        --  the altered, explosive brecciated zone encountered is
            approximately 100 feet thick in the area of the four drill
            holes.
        --  the brecciated rock resulted in less than optimal core recovery
            which suggests that reverse circulation drilling should be used
            in future.
        --  the heavy rare earth elements most commonly observed were
            Yttrium, Dysprosium, Erbium and Ytterbium
        --  the strontium enrichment noted in these assays may also be a
            potential economic target. Strontium, though not classed as a
            REE, is used in the manufacture of high strength magnets and
            has many properties similar to REEs.




 Another observation is that on each of the holes drilled, intersects of  extraordinarily hard ferric material were encountered. This hard ferric  material severely damaged drill bits and tooling. This material, when  encountered, was approximately one-half inch thick and likely a veinlet  occurrence. An XRF assay of some of this recovered material indicates  an iron oxide content of 95%. At this juncture the relation of such  ferric material to the altered brecciated REE complex requires more  study. 

 The positive attributes revealed from this drilling program along with  the close proximity of the project to infrastructure bodes well for  future activity. At this time of writing, the permitting process is  well underway with the US Forest Service and the State of New Mexico  for a deeper phase 2 drilling program that will seek to further define  the size and scope of the REE mineralized, brecciated rock. 

 The Qualified Person for this project is Tony Kovschak, M.Sc, CPG. 

 Strategic Resources is a Canadian based junior exploration company with  a Rare Earth exploration project in Lincoln County, New Mexico. More  information about the company is available on line at www.strategicresourcesinc.ca. 

 Disclaimer: 

 Neither the TSX Venture Exchange nor its Regulation Services Provider  (as that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

 Forward looking statements: 

 This news release may contain certain forward-looking inferences or  statements.  These forward-looking inferences or statements are subject  to a variety of risks and uncertainties beyond the Corporation's  control or prediction and could cause actual events or results to  differ materially from those anticipated in such forward-looking  statements.  Although the Corporation believes that the assumptions  inherent in the forward-looking statements are reasonable, undue  reliance should not be placed on these forward-looking statements.   

Strategic Resources Inc.


CONTACT:  Malcolm Bucholtz, President & CEO,Tel: [e-mail] 


    

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