The Rare Element Buzz

The Gold Report Interview with Brien Lundin (07/21/2009)
TGR: Rare Element Resources Ltd. (TSX-V: RES) are getting a lot of buzz now. Is that really a sustainable sector or is it just a flash?

BL: In the long term, I think it is sustainable. The problem has always been that the market has to appreciate the sector before it is going to go anywhere. There is no rare earth bull market; no copper bull market; not even a silver bull market. There's no investor interest in any of these sectors unless a gold bull market draws investors to mining stocks. Everything else is an offshoot from gold.

. . .I recommended Rare Element Resources for its tremendous Bear Lodge gold target at property. I was one of the first to recommend that stock years ago, along with Bob Bishop (previous editor and publisher of Gold Mining Stock Report) and I think Lawrence Roulston (publisher of Resource Opportunities and GreenTech Opportunities).

But after that, this past spring, the company came out with its 43-101 resource estimate for its rare earth elements, and just doing a very rough, back-of-the-envelope estimation, you can see that they had close to $3 billion in value sitting there in the rare earths. Once they released that report, I came out with yet another recommendation of Rare Element Resources. Then a month later, Jim Dines seized upon the stock.

I still like the company, and I still think that it's going higher. It has two engines driving it right now, and either would justify where the company is right now.

TGR: Even at the current price?

BL: Yes. My readers tripled their money in the stock within a few weeks, and I told them it would be foolish not to think about taking profits. But that said, I still think ultimately the stock has a good ways to go.

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