WYN DEVELOPMENTS COMPLETES THE PROPHET RIVER 51-101 REPORT
Vancouver, British Columbia, Canada - April 18, 2006 - Wyn Developments Inc. ("Wyn Developments" or the "Company") announces that it has received the national instrument 51-101 compliant report for the Prophet River, British Columbia, natural gas exploration project. In this report, Nicholas Baiton, P.Eng elaborates on the potential of the Prophet River Slave Point target, as well as the other prospective stratigraphic zones of the area.
The Prophet River lands are underlain by the Beaverhill Lake Group, which include such world class Slave Point Formation discoveries as the Ladyfern, Clarke Lake, Cranberry, and Hamburg pools. The primary target of Wyn's Prophet River test well is this prolific Slave Point Formation. The Slave Point is Devonian in age and described as light yellowish to dark brown limestone, interbedded with finely crystalline dolomite and thin shale laminae. Locally, the formation has been recrystallized to coarsely crystalline dolomite.
The Slave Point gas reservoirs of Western Canada have a common denominator. They have been dramatically altered by a process called High Temperature Dolomitization (HTD), where hot sub-sedimentary fluids originating in faults and fractures in the basement rocks migrate up into overlying porous sediments and alter the basic sedimentary fabric, resulting in many cases in highly porous (greater than 30%) reservoirs. Some areas of extreme alteration exhibit a physical collapse. At the proposed Prophet River test well location, 2D seismic coverage indicates the location is fractured by basement generated faults, which satisfy the conditions described above. Baiton also describes the location as a five cycle Slave Point buildup.
The report also mentions the exploration potential of other stratigraphic zones, including the Halfway, Debolt, Kiskatiwan, Pekisko and Sulphur Point formations with particular attention to the Halfway.
The Halfway zone is a proven producer in northeastern British Columbia. To the east of the proposed drill location is the Tommy Lakes field which has produced 157 bcfg with estimates suggesting in excess of 400 bcfg reserves. The Halfway Formation is Middle Triassic in age and described as being comprised of massive sandstones in part dolomitic. Many of the Triassic oil and gas fields are hosted in stratigraphic traps, and Baiton suggests that the Prophet River 2D seismic provided by the Farmor indicate both a positive structural feature in the Halfway and potentially a trap mechanism. In addition, a well drilled to the southeast of the Prophet River property flow tested at 3 MMcfd from the Halfway Formation.
The test well Operator has previously spent a total of $3.02 million on the Prophet River Property for 2D seismic and land acquisition. The 2D seismic has identified target areas within six stratigraphic sections as well as structural settings. 3D seismic is currently underway to further delineate and refine the bottom hole location.
Drilling on the property is expected to commence within three to five weeks and Wyn Developments has adequate funding to finance its share of the costs on this project.
Wyn will incur 33.3% of all costs to completion for a 21.67% working interest in this test well. Upon completion of this first well, Wyn will earn its interest in all zones from surface to the deepest zone drilled in all of the Farmout Lands (11 sections). Upon successful completion of the first well, a second option well may be drilled, and Wyn's participation will earn the Company an interest in an additional 10 sections. The project Operator has a 2.5% gross overriding royalty (GORR) and 35% working interest as per the agreement, with the option to convert their 35% working interest to an additional 12.5% GORR, for a total 15% GORR. The acquisition is subject to TSX Venture Exchange acceptance.
About Canada Rare Earths
Canada Rare Earths is a growth company focused on the exploration and development of rare earth elements at its 100% owned Goeland Rare Earths Project within the Montviel carbonatite complex, Montviel Township Quebec, immediately adjacent to Geomega's (TSX-V: GMA) recent rare earth discovery. The Goeland property located 215 km north of Val-d'Or, is road accessible and consists of 47 claims totaling approximately 2,600 hectares. Since the acquisition of the Goeland Project, the Company, in a short period of time, has successfully established itself in one of the largest Carbonatite complexes in North America. Worldwide, carbonatite-related deposits are a major host for rare earths elements ("REE"). The world's most advanced and prolific REE deposits in production or development, Bayan Obo (China), Molycorp's Mountain Pass (USA), Lynas's Mount Weld (Aus), and Rare Earth Element Resource's Bear Lodge project, are all hosted by carbonatites.
For more information on Canada Rare Earths, please contact our Head Office.
On Behalf of the Board of Canada Rare Earths Inc.
Chad McMillan
President & CEO
Neither 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. All of the above is subject to TSX.V and regulatory acceptance.
FORWARD LOOKING STATEMENTS
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's Pre-Development Agreement and the exploration of the Goeland Project, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's obligations pursuant to the Pre-Development Agreement and planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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