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ALBUQUERQUE, N.M.—State mining regulators have issued a permit for a Colorado-based company to explore for rare earth minerals on Otero Mesa in far southern New Mexico.

Geovic Mining Corp. finished staking 5 square miles of claims in the Cornudas Mountains in May. The permit was issued Wednesday.

The company says its exploration will involve only minimal disturbance, but the New Mexico Wilderness Alliance and other groups are concerned the exploration could lead to full-blown mining of the mountain range along the New Mexico-Texas border.

The permit from the state Mining and Minerals Division allows the company to drill 10 holes to search for rare earth elements, zirconium and feldspar.

Due to the rugged terrain and environmental concerns, all equipment must be carried to each drill location on foot or via horseback.

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