Matamec Explorations Inc. ("Matamec" or the "Company")(TSX
VENTURE:MAT) is pleased to announce, further to its news release of
January 30, 2012, that the full REE-Y-Zr Kipawa Project preliminary
economic assessment ("PEA") report, prepared in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"), has been filed March 14th, 2012 under
Matamec Explorations Inc.'s profile on SEDAR at www.sedar.com and
on Matamec's website at www.matamec.com.
The previously announced highlights from the Kipawa PEA
include:
Very strong project economics:
-- $606 million before-tax value (NPV8%);
-- 36.9% before-tax Internal Rate of Return (IRR);
-- $2.8 Billion revenue;
-- $1.67 Billion Earnings Before Interest, Tax, Depreciation and
Amortization ("EBITDA");
-- A before-tax payback period in 2.4 years;
-- CAPEX: $315.8 million (including contingency of $63.2 million or 25%);
-- OPEX: $89.2 million per year or $16.97 / kg mixed TREO concentrate;
-- Mine life: 12.9 years.
Robust project:
-- straightforward mineralogy, ideal deposit geometry, simple processing
flow-sheet, most infrastructure in place;
-- 79.8% of mineral resources in the indicated category;
-- Mineral concentrate grade of 1.11% TREO;
-- Overall REE recovery of 81%;
-- Average annual production of 5,072 tonnes of mixed TREO concentrate.
Fast-tracking development: first production planned for Q2 2016,
possibly sooner.
"With the full Kipawa project PEA now completed and our
permitting process underway, we are actively moving forward with
the feasibility study aimed at improving upon the positive PEA
results. The Matamec team is entirely focused on making this
special project even better through detailed examinations of
potential improvements identified during the PEA process in the
areas of by-product recoveries, mining methods, pit design, mill
recoveries, and further downstream processing options," said Andre
Gauthier, President and CEO of Matamec. "To further support the
Kipawa project, Matamec continues to place a high priority on
working with the local communities to maintain a high standard of
communications throughout all phases of development."
NI 43-101 Compliance
Unless otherwise indicated, the Company has prepared the
technical information in this news release ("Technical
Information") based on information contained in the PEA dated March
14, 2012 relating to the Kipawa Project and news releases
(collectively the "Disclosure Documents") available under Matamec
Explorations Inc.'s company profile on SEDAR at www.sedar.com. Each
Disclosure Document was prepared by or under the supervision of a
qualified person (a "Qualified Person") as defined in NI 43-101.
Readers are encouraged to review the full text of the Disclosure
Documents which qualifies the Technical Information. Readers are
advised that mineral resources that are not mineral reserves do not
have demonstrated economic viability. The Disclosure Documents are
each intended to be read as a whole, and sections should not be
read or relied upon out of context. The Technical Information is
subject to the assumptions and qualifications contained in the
Disclosure Documents.
The Technical Information contained in this news release has
been prepared under the supervision of Bertho Caron (Eng.), Vice
President Project Development and Construction of Matamec, a
Qualified Person under NI 43-101.
About Matamec
Matamec Explorations Inc. is a junior mining exploration company
whose main focus is in developing the heavy rare earths Kipawa
deposit and exploring more than 35 km of strike length in the
Kipawa Alkalic Complex for rare
earths-yttrium-zirconium-niobium-tantalum mineralization on its
Zeus property.
The Company is also exploring for gold, base metals and platinum
group metals. Its gold portfolio includes the Matheson JV property
located along strike and in close proximity to the Hoyle Pond Mine
in the prolific mining camp of Timmins, Ontario.
In Quebec, the Company is exploring for lithium and tantalum on
its Tansim property and for precious and base metals on its Sakami,
Valmont and Vulcain properties. As well, it is exploring for gold
together with Northern Superior Resources Inc. on the
Lesperance/Wachigabau property.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information"
including without limitation statements relating to mineral
resource estimates, realization of resource estimates, capital and
operating cost estimates, the timing and amount of future
production, costs of production, success of mining operations, the
ranking of the project in terms of cash cost and production,
permitting, economic return estimates and potential upside. Readers
should not place undue reliance on forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. The
preliminary economic assessment results are estimates only, are
preliminary in nature and are based on a number of assumptions, any
of which, if incorrect, could materially change the projected
outcome. Until a positive feasibility study has been completed, and
even with the completion of a positive feasibility study, there are
no assurances that the Kipawa deposit will be placed into
production. Factors that could affect the outcome include, among
others: the actual results of development activities; project
delays; inability to raise the funds necessary to complete
development; general business, economic, competitive, political and
social uncertainties; future prices of metals; availability of
alternative REE sources or substitutes; actual REE recovery;
conclusions of economic evaluations; changes in project parameters
as plans continue to be refined; accidents, labour disputes and
other risks of the mining industry; political instability,
terrorism, insurrection or war; delays in obtaining governmental
approvals, necessary permitting or in the completion of development
or construction activities. For a more detailed discussion of such
risks and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, refer to Matamec Explorations Inc's filings with
Canadian securities regulators available on SEDAR at
www.sedar.com.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Contacts: Andre Gauthier President (514) 844-5252 514-844-0550
(FAX)info@matamec.com Caroline Wilson (P.Geo.) Director of Investor
Relations (647) 938-4080caroline.wilson@matamec.com
www.matamec.com