Pancontinental Uranium and joint venture partner Crossland Uranium Mines have begun the first phase auger drilling program for rare earth elements (REE) at their Charley Creek Project in the Northern Territory, Australia, and are also establishing an on-site sample processing facility.

The high values for REE were noted from assays of a heavy mineral concentrate collected from alluvial deposits at Charley Creek.

The heavy mineral concentrate returned total rare earth oxide (REO) contents of at least 39%, though the upper detection limit of the assay method was exceeded for several REE. This has probably resulted in an under-estimation of all REO values in the sample.

These deposits were formed directly from the source of REE within the Teapot Granite, which also contains separate uranium anomalies that are currently being drilled by the Pancon/Crossland joint venture.

The current drilling program is intended to rapidly assess the potential for development of an alluvial mining operation to produce a heavy mineral concentrate and quickly capitalize on the global shortage of certain REE, particularly the heavy REE.

The program will target the rapid assessment of the quantity of alluvium, the concentration of heavy mineral containing REE within the alluvium, and the REE content of that heavy mineral concentrate.

The joint venture has planned to conduct an initial auger drilling program to define areas for quantification of heavy mineral resources.

The joint venture has already commenced the set-up of the on-site processing facility, and expects this to be in operation by early in December, 2010.