Great Western Minerals Group Targets Earlier Dates and Increased Output at Steenkampskraal Rare Earth Project
April 21 2011 - 9:30AM
Marketwired
Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX
VENTURE: GWG) (OTCQX: GWMGF) announces that it has updated its
plans for the Steenkampskraal Rare Earth property in South Africa.
The steps in the plan may be undertaken in sequential order, or
wherever possible, will be undertaken on a concurrent basis with
the intent of reducing the time frame to advance the project.
GWMG has immediate plans to commence refurbishment of the
previously producing mine shaft at the Steenkampskraal site,
re-establish the containment ponds, and address all waste disposal
requirements.
The Company has issued a tender call for this refurbishment work
that will commence immediately after the Company confirms receipt
of approval of the proposed work program from the National Nuclear
Regulator of South Africa ("NNR") under the site's existing Nuclear
License.
The receipt of the NNR work program approval will also allow the
Company to proceed immediately with surface and underground
sampling at Steenkampskraal to begin the process of bringing the
historic resource estimate into compliance with National Instrument
43-101 technical reporting requirements.
As previously announced, the Company continues to hold advanced
discussions with potential partners regarding a Rare Earth
separation plant. Within these discussions, GWMG is evaluating the
participation of a financial joint venture partner, the development
of an offtake agreement and/or the use of debt for purposes of
financing the separation facility. The Company is targeting July
2011 for this decision.
GWMG, in conjunction with institutions considering debt
financing for the project, is evaluating whether a feasibility
study is necessary to meet financing requirements. In the event
that the full feasibility study is not required the overall
schedule could be advanced.
Work necessary to complete the Environmental Management and
Protection Plan and other environmental regulatory requirements is
currently in progress at the site.
The design of the mine and processing facilities has been
upgraded to allow for capacity to produce approximately 12,000
tonnes per annum of Rare Earth chloride solutions. These will be
sent to the solvent extraction separation facility, planned to be
located in South Africa, to produce approximately 5,000 tonnes of
Rare Earth oxides per year. This planned level of production is
almost double the 2,700 tonnes per year capacity originally
anticipated.
Should the feasibility work proceed as planned, and should
environmental and work program approvals be received in a timely
fashion, then GWMG is targeting Q1 2012 to commence underground
mining operations. This would provide feed from underground to
blend with material already broken on surface to be available for
processing by the beginning of 2013 when construction of the
beneficiation and separation plants is planned to be completed.
GWMG President and CEO Jim Engdahl said "Today's announcement is
a watershed moment in the history of Great Western Minerals Group.
Our Company has embarked on a fast track route to move the
Steenkampskraal mine into production. We plan to do so earlier than
originally projected and at a planned tonnage that is double what
we had originally contemplated."
Engdahl continued, "We intend to deliver on our ambition to be a
fully integrated Rare Earths supplier by, or before, the beginning
of 2013. The plan to double our original capacity estimate is a
clear response to our customer base that requires supply assurances
so they can develop their own business models with certainty. GWMG
looks forward to executing its integrated plan."
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 to be
produced at the former producing Steenkampskraal mine in South
Africa and holds 92.6% equity 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 six 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
exploration program and a Resource Estimate 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.
CUSIP: 39141Y 10 3
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 Great Western Minerals Group
Ltd. 219 Robin Crescent Saskatoon, SK S7L 6M8 info@gwmg.ca
www.gwmg.ca
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