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As a long term supporter of U.S. heavy rare earth independence and Ucore's Bokan Deposit I had confidence in the State of Alaska's support of the project.

01 May 2014

By Jeb Handwerger
Attention must be paid to the heavy rare earth sectors which is dominated by the Chinese. Tensions are increasing between the West (US, Europe and Japan) and the East (China and Russia) over trade, territories and natural resources. No where is this more apparent than in the rare earth metals. These metals are critical for our high tech military applications, permanent magnets and green energy. The U.S. imports close to 100% of this material from China.

This may soon change as the Alaskan Legislature unanimously approved a $145 million bond which will allow Alaska to issue bonds for Ucore Rare Metals (UCU.V or UURAF) Bokan Heavy Rare Earth Deposit. All 38 Alaskan representatives in attendance voted in favor of the bill which would allow Alaska to fund the infrastructure and capital costs at the mine.

As a long term supporter of U.S. heavy rare earth independence and Ucore's Bokan Deposit I had confidence in the State of Alaska's support of the project. They see the economic benefits of mining and energy investment with a long history of successfully funding major mining projects such as Red Dog, Fort Knox and the Kensington Mine. Ucore's Bokan Deposit is one step closer to becoming the first heavy rare earth mine into production in North America.

"We're very pleased with the outstanding support that the Bokan project has received from the Alaska State Legislature," said Jim McKenzie, president and chief executive officer of Ucore. "Alaska has a very long history of advancing and supporting key resource projects, both financially and otherwise, and Bokan is no exception. Alaska legislators have recognized that the area has the potential to be America's leading heavy rare earth production hub, with an array of ancillary industries, such as REE separation and metal manufacture."

A rare earth mine in Southeast Alaska could provide thousands of job opportunities while at the same time boost U.S. domestic production and supply of the critical heavy rare earths. The bonds will help Ucore finance the costs related to construction and infrastructure. This is a historic and momentous announcement for the race to rare earth independence.

For many months, I told my readers not to underestimate the support of Ucore and rare earth independence by the Alaskan Government. They understand that rare earths are needed in wind turbines, advanced batteries, turbines and so many consumer goods such as smart phones, tablets and flat screen TV's.

China controls all these metals but has reduced the exports significantly over the past ten years with the biggest reduction in the last three years. This reduction in supply from China could be a boom to Southeast Alaska and Ucore who is ready to fill the already existing shortfall. Stay tuned as Ucore marches the Bokan Heavy Rare Earth Deposit forward.

Right now is an auspicious time for a reversal as the stock made a 50% fibonacci retracement of the previous move from the December low at $.20 to the $.475 area.

I would consider this recent pullback from $.50 to $.325 a healthy pullback and may add to my position in the near term. Remember Ucore just raised close to $8 million at $.38 a share. New positions can be purchased at a discount to what the smart money and institutions recently paid. Ucore may now have one of the strongest treasuries in the rare earth junior mining sector.

Listen to my recent interview with Ken Collison COO of Ucore (UCU.V or UURAF) who has a proven track record of building mines. Most recently in Southeast Alaska he was responsible for bringing into production Coeur's Kensington Gold Mine.

Disclosure: Author owns Ucore and the company is an advertiser on my website.

Courtesy: Goldstocktrades.com 


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