Great Western Minerals Group Ltd.: Deep Sands Project Exploration Results and Update
March 31 2011 - 10:31AM
Marketwired
Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX
VENTURE: GWG) (OTCQX: GWMGF) announces that, based on the results
of an extensive drilling and sampling program, and in consideration
of the attention required for GWMG's more advanced projects, the
Company does not plan to undertake additional exploration work on
the Deep Sands project at this time.
The Snake Valley and adjacent Deep Creek Mountains of
west-central Utah host an extensive area of low-grade rare earth
(monazite) and iron (magnetite) enriched mineral sands. Given the
low relative grades encountered in the original sampling, a model
for an economically viable deposit was developed. The target was an
open pit, low-grade iron deposit (grade 10% Fe2O3) from which
REE-bearing minerals such as monazite and xenotime might be
recovered as a by-product.
To test this hypothesis, a two-phase drill program was carried
out in 2008 covering most of the 17,708 hectare (43,758 acres)
property. Phase I consisted of 77 drill holes, using a pattern of
one drill hole per square mile, drilled to a target depth of 50 m.
Phase II was a geochemical sampling program and consisted of 902
holes drilled to a target depth of 6 m. based on approximately 450
m. drill-spacing. The holes were drilled using two Geoprobe drills
employing Direct Push technology, which recovered material in a
plastic core tube. In total 4,705 core tubes were recovered and
analyzed, representing 7,652 m. (25,099 ft.) of drilling. The
utilization of Direct Push Drill technology and the resulting PVC
encased cores enabled the development of a scanning methodology
utilizing a hand held XRF analyzer to be the main assay tool with
support from ICP analysis and a rigorous QA/QC protocol for REE
analysis. The analyses, compilation and interpretation represented
a sizeable undertaking that was only recently completed with
summary results reported below:
Of the 77 Phase I drill holes, 14 contained greater than 500ppm
Total Rare Earth Elements ("TREE") with the highest individual 5
ft. interval being 1,325ppm TREE. Of the 902 Phase II geochemical
holes, 12 individual 5 ft. samples had values greater than 500ppm
TREE. The highest value was 1,070ppm TREE.
Systematically sampling a mineral prospect of this magnitude in
a cost-effective manner proved challenging from the beginning.
Compaction of material, the unconsolidated and dry nature of the
material, and the vibratory effects subjected by the direct push
methodology resulted in lower than expected recovery of core
samples. Total core recovery during Phase I drilling accounted for
an average of approximately 59%, while Phase II drilling resulted
in an average recovery of less than 50%. Notwithstanding these
results the Company believes, however, that the program was
successful in proving that an REE ("Rare Earth Element") deposit
meeting its target parameters for size (1 billion tonnes) and grade
was not likely to exist on the property. However, there was
potential for several, iron-rich deposits with a REE by-product. In
particular, drilling identified an area in the central part of the
property with relative iron enrichment that measured approximately
3 km. in length by 1 km. in width. In addition there are areas
covering significant paleo-beaches that show airborne radiometric
anomalies, suggesting potential REE-enrichment, that have not been
adequately tested, as well as the northwest part of the property
which showed the largest magnetic and radiometric targets, that
could not be drill tested because of the boulder content of the
desert material.
The Company decision based on the Phase I and II programs is to
retain its interest in the project (currently 25% of the REE
contained on the property), but not to undertake any further
significant exploration work on the property unless circumstances
change to warrant additional work. GWMG's involvement with the Deep
Sands project will include annual reimbursements to Titan for
Bureau of Land Management claims maintenance fees, and State of
Utah Trust Lands Administration lease payments. The Company's
partner in the project, Titan Mining Group LLC, has informed GWMG
that based on the difficulties encountered during recovery of core
samples and their lack of confidence in the corresponding results,
they will proceed with a bulk sampling program on one or more of
the areas of known iron enrichment as identified previously by
Aeromagnetic Survey interpretation and subsequent pit sampling and
sample testing. The Company will monitor the results of this and
any other tests on the property and assess any future participation
in development of the project based on such results. The Company
has not relinquished its ownership or permit rights, allowing the
Company to potentially recover costs in the future, although those
potential recoveries can not be determined at this time.
"With several other projects requiring the focused attention of
GWMG, the Company has decided to put Deep Sands on the back burner
in terms of spending any more on exploration", said Jim Engdahl,
President and Chief Executive Officer. "We wish our partners well
in their proposed development of the iron potential on the
property. If there are good reasons in future to revisit our
decision, we will do so."
John Pearson, P.Eng, is the Qualified Person responsible for the
content of this news release.
Great Western Minerals Group Ltd. is an integrated Rare Earths
processor. Its specialty alloys are used in the battery, magnet and
aerospace industries. Produced at the Company's wholly owned
subsidiaries Less Common Metals Limited in Birkenhead, U.K. and
Great Western Technologies Inc. in Troy, Michigan, these alloys
contain aluminium, nickel, cobalt and Rare Earth Elements. As part
of the Company's vertical integration strategy, GWMG has signed an
Off-take Agreement for 100% of the Rare Earth Elements produced at
the former producing Steenkampskraal mine in South Africa and holds
92.6% ownership in Rare Earth Extraction Co. Limited, the owner of
the Steenkampskraal mine. In addition to a planned exploration
program at Steenkampskraal, GWMG also holds interests in seven Rare
Earth exploration and development properties in North America.
Certain information set out in this News Release constitutes
forward-looking information. Forward-looking statements (often, but
not always, identified by the use of words such as "expect", "may",
"could", "anticipate" or "will" and similar expressions) may
describe expectations, opinions or guidance that are not statements
of fact and which may be based upon information provided by third
parties. Forward-looking statements are based upon the opinions,
expectations and estimates of management of GWMG as at the date the
statements are made and are subject to a variety of known and
unknown risks and uncertainties and other factors that could cause
actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. Those
factors include, but are not limited to, the results of the
feasibility study at Steenkampskraal, satisfaction of the
conditions precedent with respect to GWMG's offtake agreement,
receipt of all required approvals (including those relating to the
commencement of production at the Steenkampskraal mine) and risks,
uncertainties and other factors that are beyond the control of
GWMG, risks associated with the industry in general, commodity
prices and exchange rate changes, operational risks associated with
exploration, development and production operations, delays or
changes in plans, risks associated with the uncertainty of reserve
or resource estimates, health and safety risks and the uncertainty
of estimates and projections of production, costs and expenses. In
light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place
undue reliance upon forward-looking information. Although GWMG
believes that the expectations reflected in the forward-looking
statements set out in this press release or incorporated herein by
reference are reasonable, it can give no assurance that such
expectations will prove to have been correct. The forward-looking
statements of GWMG contained in this News Release, or incorporated
herein by reference, are expressly qualified, in their entirety, by
this cautionary statement and the risk factors contained in GWMG's
current annual information form available at www.sedar.com.
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: Great Western Minerals Group Ltd. Dwight Percy Manager
of Investor Relations (306) 659-4500 info@gwmg.ca www.gwmg.ca Great
Western Minerals Group Ltd. 219 Robin Crescent Saskatoon, SK S7L
6M8
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