GeoMegA Resources Inc.: Montviel Project Update
October 16 2012 - 7:00AM
Marketwired Canada
Geomega Resources Inc. ("GeoMegA" or the "Company") (TSX VENTURE:GMA) announces
a project update on its Montviel Rare Earths Elements/Niobium project. In
January 2012, G Mining Services Inc. ("GMSI") was retained to assume overall
coordination and responsibility for engineering and financial evaluation to
produce a Preliminary Economic Assessment study ("PEA") Technical Report in
accordance with NI 43-101 guidelines. The PEA results for the Montviel project
are expected in Q1 2013.
PEA scope of work Contributors
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Market study Roskill Consulting Group Ltd
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Geology GeoMegA - Montviel Core Zone
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Resource estimation Belzile Solutions Inc.
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Metallurgy and processing SGS Lakefield, CANMET, COREM,
G Mining Services Inc. and Gary
Pearse.
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Mine design G Mining Services Inc.
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Hydrogeology, geochemical, Golder Associates
geotechnical and geomechanical
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Infrastructure G Mining Services Inc.
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Tailings pond Golder Associates
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Capital costs G Mining Services Inc.
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Financial modeling G Mining Services Inc.
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Legal review Lacroix Freres Consultants Inc.
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Environmental baseline Geodefor, Roche Consulting Group Ltd
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Conclusion G Mining Services Inc.
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Geology
The Phase 2 drilling assays (click here to download) revealed a Heavy Rare
Earths ("HRE") enrichment zone. Located on the southern periphery of the Core
Zone, the HRE enrichment zone ("HRE-S") was intersected by four (4) drill holes
covering 75 metres (east-west) by 45 meters (north-south) by 120 meters vertical
(click here to download). The HRE-S zone is open east, west and at depth and
requires additional drilling to define its full extension.
"The Dysprosium enrichment in the HRE-S zone is an excellent complement to the
Neodymium content in the Core Zone. Neodymium and Dysprosium are the critical
elements for the high performance permanent magnets. " comments Alain Cayer, VP
Exploration of GeoMegA.
Resource estimation
Complete disclosure of the updated NI 43-101 compliant resource estimate for the
Montviel Core Zone is scheduled for December 2012. The economic elements
considered for the cut-off grade will be: Neodymium, Europium, Praseodymium,
Dysprosium, Niobium and Gadolinium.
Metallurgy and process definition
Beneficiation and hydrometallurgical tests to optimize the recoveries of both
Rare Earths elements ("REE") and Niobium is progressing well. The PEA process
flow sheet design will conclude by the end of Q4 2012.
Based on the results to date, GMSI is developing a conventional metallurgical
recovery process flowsheet including:
-- primary crushing and grinding;
-- Flotation beneficiation;
-- Leaching of REE from the beneficiated material with hydrochloric ("HCl")
acid;
-- Amenability of Niobium to a saleable Niobium product from leaching
residues;
-- Precipitation of impurities from leaching solution;
-- Precipitation of REE from leaching solution;
-- Leaching solution neutralization;
-- Regeneration of HCl acid from neutralized leach solution;
-- Conversion of precipitated REE into saleable Rare Earths products.
Mine design
The Montviel orebody will be mined using an underground approach via ramp
access. The mine output will depend on the overall metallurgical recoveries and
head grades. The production plan should aim at extracting in priority the higher
grade material of the Montviel enrichment zone (click here to download). The
throughput is market driven and based on the Roskill market review, an initial
annual production in the range of 2,000 tonnes of Neodymium oxides is targeted.
Infrastructure
The Montviel project benefits from public infrastructure and available labour in
the immediate area. The project site is located approximately 100 km north of
Lebel-sur-Quevillon (pop. 2,800) and 45 km west of the Cree First Nation of
Waswanipi (pop. 1,800) in the southern, developed, part of Northern Quebec.
Montviel has permanent access with a high capacity (oversize) logging road
connecting to provincial highway 113.
All infrastructures required for mining and processing of the ore should be
located on site. Anticipated project energy will be provided by a 45 km long
power line connected to the Hydro-Quebec distribution network.
NI 43-101 Disclosure
Robert Marchand, Eng., GMSI VP mining engineering, Gary H.K. Pearse, P.Eng.,
MSc., metallurgical consultant and Alain Cayer, Geo., MSc., VP-Exploration, are
the Qualified Persons who approve the technical information presented in this
news release.
About GeoMegA (www.ressourcesgeomega.ca)
GeoMegA, which owns 100% of the Montviel Rare Earths/Niobium project, is a
Quebec mineral exploration company focused on finding economically viable
deposits of Minor Metals in Quebec. GeoMegA is committed to meeting Canadian
mining industry standards and distinguishing itself with its expertise, know-how
and its support and respect for local communities and the environment.
29,274,113 common shares of GeoMegA are currently issued and outstanding.
/s/ "Simon Britt"
Simon Britt
Chief Executive Officer
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions
and plans. The forward-looking statements that are contained in this news
release are based on various assumptions and estimates by the Company and
involve a number of risks and uncertainties. As a consequence, actual results
may differ materially from results forecast or suggested in these
forward-looking statements and readers should not place undue reliance on
forward-looking statements. We caution you that such forward-looking statements
involve known and unknown risks and uncertainties, as discussed in the Company's
filings with Canadian securities agencies. Various factors may prevent or delay
our plans, including but not limited to, contractor availability and
performance, weather, access, mineral prices, success and failure of the
exploration and development carried out at various stages of the program, and
general business, economic, competitive, political and social conditions. The
Company expressly disclaims any obligation to update any forward- looking
statements, except as required by applicable securities laws.
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