SOMBA K'E/YELLOWKNIFE - British Columbia-based mineral exploration company Solace Resources Corp. is going hunting for rare earths near Avalon Rare Metals Thor Lake project.

Solace's claim - of which a large portion remains under dispute with a competing staker - totals about four square-kilometres within the

north-central part of the Blachford Property, about 1,500 metres northwest of Avalon's Nechalacho rare earth element deposit.

"The area is highly prospective for rare earth elements," said Kyle Stevenson, president of Solace, highlighting the close proximity to Thor Lake.

Nechalacho is Avalon's primary asset, according to the Ontario-based mineral exploration and development company's website, describing the project as one of the highest-quality undeveloped rare earth element deposits in the world. The deposit is one of the few potential sources of valuable "heavy" rare earth elements outside of China, which includes europium, terbium and dysprosium, as opposed to the "light" rare earth elements such as lanthanum and cerium. These elements can be used for lasers, fluorescent lamps, electric motors and batteries.

Nechalacho is host to 64.2 million tonnes of rare earth elements with the potential to last at least 100 years, Avalon chief executive officer Don Bubar told Yellowknifer.

Bubar declined to comment on the emergence of Solace on the Blachford property.

Solace is focused on rare earth minerals and diamonds and also has an interest in the Back Lake Diamond Project, about 40 km south of Diavik Diamond Mine.

Previously called Island Arc Exploration, the Blachford Property is Solace's first exploration venture in the North.

"Our partners have extensive experience working in the North and exploring for rare earth elements," Stevenson said, adding it is too early to comment on the potential value of any deposits that may be found in the permit area.

The property Solace has optioned was staked by Zimtu Capital Corp. when it was opened for staking in late 2010. It is yet unknown when the disputed portions of Solace's land package will be settled, but Stevenson said the best-case scenario is Solace being granted the entire land package which they staked.

Solace has agreed to pay $50,000 on signing the TSX Venture Exchange agreement, additional cash payments of $150,000 over 12 months, in addition to various share agreements.

While the deal is being closed, Solace is currently developing an "extensive" exploration program expected to begin work in August, Stevenson said.

As part of the company's corporate responsibility policy, Stevenson said Solace intends to consult with all community groups on their development plans for the Blachford property.

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